New-York tribune., 1918-01-13
Bv Francis H. Sisson
Vice-Pres;deut, Guaranty Trust
Compony of Ne'c York


runs, "Watchman, tell us of
the night, what it's signs of promise
are" So, shrouded by the night of
obscurity which has been gathering
about the railroad situation in this
country, investors, shippers, labor
ers and politicians are seeking signs
of promise. looking for the first
CLEANS of the daybreak. A most
fertile field for speculation is Of
fered, and he is wise indeed who
. can foretell what the dawn and day
to follow will bring forth.
On every hand we hear the
prophecy frequently made that the
present control Of the railroads by
the government is but the first step
toward government ownership, and
that once unified under government
control and operation the railroads
will never be "unscrambled. 1t is
argued that when the economies
made possible by government CO.
ordination and the elimination of
competition are achieved, neither
the railroad owner nor user nor
worker will wish to return to the
old order.
There is much to sustain this view
which the logic of the situation
seems to support, but it is equally
. certain that few who talk glibly of
this coming of government owner
ship have any comprehension OF
what it implies or grasp at all the
many factors in the equation.
We are told that many railroad
executives now believe it to be in
evitable, that Washington is recon-
ciled to it. that the labor leaders de-
sire it, and that even the railroad
stockholders look forward to it with
complaisance This state of mind,
so far as it exists, certainly followed
the feeling of relief which the whole
public shared when the govern
ment took in hand, attempting to
solve, an impossible situation in
transportation which it had been the
chief factor in creating. The gen.
eral feeling, perhaps, was that any
change must be for the better, and
if the only possible change must be
government ownership, then let 1t
come.
But before this conclusion is
.loI - ~ ,,,;, Jc &c Tho y,,1,1;c
and certainly long before such {
step is taken, the propriety of Civ
inc some study to the experience Of
other countries in government
ownership of transportation and th'
experience of this country in tn
government ownership Of other pub
lie utilities may seem obvious.
A Record
Of Failure
For the fact may be boldly state
at this point that in no country i
the world where government owner
ship of railroads has been attempte
has it been successful, with tn
single exception of Prussia, where
under the arbitrary mandates of
military autocracy some degree c
efficiency and profit has been s.
cured. Further, it may be state
that in no important instance h;
the experience of our own govern
ment in business operation bee
such as to warrant the conclusic
that such activity could be prof
ably extended Still further, it CO
be maintained that there is a su
ticient majority of failures in pu
lie ownership of other public uti
w ties in this country clearly
demonstrate its wastefulness and i
efficiency under our present for
of government and at our presel
stage Of political progress.
The privately owned railroads
the United States have the lowe
freight rates, the lowest capitaiz
tion per mile, the greatest operati,
efficiency and pay the highest wag
of any railroads in the world.
They have been responsible for
the inventions and Sew ideas
equipment and operation which ha
developed the transportation indr
try to its present point. There
not a single instance on record
any new ideas in railroad equipme
or operation coming out of cover
ment owned railroads. There is
.Aa. incentive for creative thought in t!
field.
' Our privately owned railroa
have rendered the largest measy
of service at the lowest. cost to
user That they must turn to t
~ government to-day for relief fr
intolerable conditions is due to
failure of their own, but to the f.
e.. ure of that very government, in
- -.
ramitied activities, to permit a
A u,late provision for them