New-York tribune., 1919-01-05

H"NS oeeu Ieall%eO, nut, SINCE tnlS
could not have been done. it is useless
speculation to urge that fact.
What Should Be Done?
What should be done with the
roads?
The two extremes are absolute
private ownership and operation, and
absolute government ownership and
operation.
My own Judgment, fearlessly ex-
pressed. is the former is impossible
and the latter is unwise
The roads cannot be turned back
10 their owners and operated success
lully under the limitations of law as
it now stands
Yet the public mind cannot be
brought to repeal Of these restrictive
laws, unless some other safeguards are
thrown about the operation on behalf
of the public
g! take it that the laws must stand
untll superseded by others, hence it, is
ioiiy to talk about turning the roads
back to the owners as before the war.
Since they have been taken over the
operating expenses have been increased
amazingly, largely because the treasury
Which supplies the money is inexhaus-
tlole, being the National Treasury.
Nome OF these expenses will most likely
remain. The country witnesses the
business spectacle Of seeing the larges t
freight and passenger traffic in The his
tory OF transportation, the highest
rates paid by the public; in a word,
the greatest income of the business,
with deficit Of at least 5000 900, 900
to be cared for out of the National
Treasury.
The public has an interest in trans
portation, for which the roads exist.
They can no longer be looked upon as
property to be operated for the profit
OF the owners without regard to the
rights of the public. Hence the public
has an inherent right to demand SER
vice. It's chief interest is service eco
nomically and efficiently rendered
While government work is done on
contract basis, no one pretends to hold
the government to its contracts either
IN time Of completion of the work or
amount to be paid for it.
"A private contract usually fixes the
time, with a forfeiture penalty, and al
ways fixes the amount to be paid But
government contract names sum,
and when it is exhausted comes back to
Congress and asks for an additional
appropriation. 1t is granted as mat
ser OF course upon the grounds that it
is the government doing it's own work
and it should not be exacting in its de-
mands.
eve hear it on every hand, why not
grant it; who will be hurt? Uncle
Sam is paying the bills; he won't feel
it,
This sense of an easy responsibility
displays upon every hand. Just now
Members of Congress and the public
are exercised over the report of the
Hog island investigation. which shows
that the contract price at irst fixed at
$2l 000,000, then raised to $27,000,0OO,
Will reach $61,000000. Here is a dis
crepancy Of $34,000,000, or, expressed
IN percentage, an outlay which is 800
per cent over the contract price.
Charges Gross Wastefulness
The enormity is not in the fact of
this discrepancy, but in the ease with
which the public will at once dismiss
1t with the excuse that it is for the
government, and why complain? This
lack of the sense of economy which
naturally and inevitably excuses waste
1uiness winch under private contract
would lead to immediate prosecution is
the one outstanding indictment against
government ownership and operation
where 1t can be done through private
enterprise.
Now as to the efficiency Of govern
ment operation: The travelling public
has never been so shabbily treated.
The present system is intolerable, with
out hope of correction. Whose fault
it is is not the question. No one feels
responsible. 1t is the government that
runs the roads, and we are the govern
ment II shipment is lost, or articles
are stolen, who cares and who will
trace the goods? To inquiries the in
variable answer comes, 'We do not
know with an air that we do not care.
If the case is repeated, to whom viii
the report be made and what greater
interest will be found when the report
is made?
The servility of the government in
the railway brotherhood demand for 20
per cent increase in 1915, which was
the country's greatest national hu-
initiation, has not only increased this
spirit Of public disregard, but has in
duced pronounced sentiment for gov
eminent ownership among labor circles.
My own opinion is that neither com
plete private ownership nor govern
ment ownership is the wise way. Both
We must find way which will include
the good of the two, but avoid the
dangers OF both. This is the problem.
Under government operation the single
system idea, with common terminals,
union ticket Offices, employment of
short hauls, no matter on which line
the traffic goes, are all valuable changes
which in the interest Of the public
should be retained
Consequently, our legislation should
permit the roads to pool their proper
ties. This would necessitate amend
ment if not repeal of the Sherman law.
The growing demands upon transpor-
tation with the tremendous growth of
the country will demand new develop
ments of rail facilities, which will en-
tail great outlay Of money.
Must Be Secured
"The properties must be secured for
the sake Of securing holders, and the
public must be secured against fcti-
tlous values in watered stock. Hence.
the government must regulate the is
suance of securities and at the same
time permit such profit to security
holders az to secure a ready market
for the bonds
There must be guaranteed by law
that the power which fixes the expense
OF operation must also fix the income
70 insure that the two will have a
definite business relation.
The most feasible way to secure the
importance Of nrivafo o,.,,o...l,: