The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-12-08
THE

A strong effort is being made in congress to have the rail-
roads pass out OF the control OF the government and INTO the
hands OF their former private owners. The railroads have done
well. The presidents and general managers were set aside and
their subordinateS put in charge under direction OF the govern
ment, but as these new general managers knew that the roads
would come back and the old officials would come back they were
very careful to carry out the plans and policies OF their tormeT
superior officers so that they would be in good standing when
they returned. Government ownership has long been desired by
a large number OF people, and many thought when the govern
ment took over the railroads that it was the beginning OF the end,
and that they never would return to private ownership again
To prevent this, and to discredit government ownership as much
as possible, everything was done to make even temporary gov
eminent control a failure. A saturnala of money spending began
The sums spent on betterments and repairs were greater each year
than they cost under private ownership in two or three years
EMPLOYEES demanded back pay, and millions were spent in this man
ner. Every crew was worked overtime and paid at the rate OF
time and a half for this work. Everything was done to make
government ownership as expensive as possible, with the result
that in addition to the vast sums recklessly spent the government
is confronted with an accumulation OF debts amounting to many
millions, The purpose was to give those who favored government
ownership such an expensive dose that they would never favor
permanent government ownership, All wen-informed railroad
men are aware of all this, but, of course, they must keep it to
themselves or get in such bad odor that they would be dispensed
with as soon as private ownership is restored. 1t was a costly
experiment, but war was on and no one considered the cost OF
war measures,
1t cannot be said that the repairs and beuerments that cost
so much were not necessary. Private owners had been parsi-
monous and economical, and spent no money that could be avoid
ed. When they got Uncle Sam in as paymaster all this changed.
Not only were necessary betterments made, but much money was
spent that could have been kept in the treasury for a long time.
In order to show a better service to the public the government
authorities spent money lavishly to overhaul and rebuild the
equipment Of rundown railroads and put themin firstcass shape.
The properties, therefore, will be returned to the private owners
worth many millions more than they were when the government
took them over, There may be some controversy over the ac-
cumulated debts piled up mountain high against the railroads,
which the government is called upon to pay. The sums are so
great that they cannot be concealed or hidden away. There will
be an investigation, OF course-congress is famous for probing
commitees-but when all is done it will be found that the national
treasury has been Stung for a vast amount, and the railroads will
get The benefit OF it. An improved railroad service was neces-
sary, and during the war it may have paid for itself The army
and navy and general transportation were served, and this was
OF incalculable benefit to ourselves and the allies. The roads are
in fine shape, and the commerce of the country can be handled
expedihously for a long time without the expenditure of much
money for repairs and bettcrmcnts, and, while the treasury at
Washington has been bled White, the country will benefit, indirect
ly perhaps, more than the experiment cost.
Besides repairs and betterments the stockholders in the rail
roads received or are to receive dividends on their holdings. which
will be a new and pleasant experience to many of them who have
heard nothing of dividends for many years. Temporary govern
ment ownership put things in shape, and when the owners resume
control they can show profits and earnings largely increased, while
expenditures will be reduced to a minimum. This will be another
strong argument against permanent government ownerhip. The
war emergency was met at a terrific cost to the government, but
it can, and no doubt will, all be thrown in and charged up to
the fortunes of war.
Before the government took hold the private owners COM
planned that the various railroad commissions would not permit
them to charge enough for freight and passenger traffic to en-
able them to borrow money to finance repairs and betterments
The national treasury has furnished the money for these purposes,
and, while the people will have to foot the bill, the improved ser
vice of the railroads may in a large measure compensate them
for their stupendous outlay. Cest la guerre explains all, and
the private owners Of the railroads have reason 10 rejoice at their
good fortune.