The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-02-19
Charges Inconsistency.


poses are equivalent to Government op-
Grafton or would necessarily lead to II.
a feature common to all such plans, and
in my opinion their fatal defect and
largely the explanation Of their self
contradictory character. Is that they are
based upon a permanent Government
guarantee of minimum earnings for the
railroads
The two things private management
and permanent Government guarantee
OF earnings are simply not reconcilable.
The railroads cannot eat the cake and
have It You cannot rent your house to
rome one and then expect to be master
IN your house.
III the railroads want to have private
mana cement In fact instead OF merely In
name, they must take their chances and
rely upon public opinion for a square
deal. II they are not willing to do that.
II they ask the people to protect them by
giving them a permanent guarantee Of
minimum earnings, the people will
Tghtly insist upon such minute and ex-
Getting safeguards as to amount to Gov
eminent operation.
81 am wholly opposed to the timid
gpportunism which would barter away
che realty OF private initiative and enter
prise for permanent governmental
guarantee of earnings. II we cannot as
citizens be convinced that bureaucratic
management IL preferable to individual
dnort, we must not as stock or bond
holders permit ourselves to be bribed
INTO making a compromise with our con-
victons
"And am optimistio enough to believe
mat by deserving the good will and con
fdence OF the people and making ade-
quats efforts TO keep them correctly in
formed the railroads will get a square
zeal from the people.
suggests Presidents Committee.
MY suggestions. in view of these cir
cunstances are:
Until the valuations are completed
If the Interstate Commerce Commission
or other authority having first been
granted exclusive power in rate making
os directed to consider the existing rates
IS prirna facie fair and reasonable on
the basis Of existing wages and costs,
subject to such adjustment OF inequali-
ues or injustices between localities and
Shippers as the Interstate Commerce
commission may determine, or better
SUI a committee of railroad presidents
and shippers subject 10 the Interstate
commerce Commissions casting vote in
case Of disagreement.
III wages and cost OF material de-
>'SHoo let rates decrease prOpOrtlOnately
determined, say every six months,
IVY IN no event, pending the completion
~ the valuation. below figures which
YOU'D produce as near as may be an ag-
sresate return equivalent to the rental
row being paid by the Government for
M use OF the railroads. plus n fair"f1@
urn upon such new money as may be
pVt into the properties
In the new railroad legislation about
% be framed by Congress let It be pre-
rAely defined instead OF having merely
vague and unenforceable formula as
"eretotore, what items are to be con-
foered by the Interstate Commerce
0mInission, or such regional bodies as
nay De appointed. in fixing rateS The
Principal ones among those items are
vases' cost OF ma terials, a return on the
IIr value Of railroad properties at a
naiHcient rate 10 attract new capital and
Sumulate enterprise. 1t is surely not
seyond the capacity OF language to de-
me with clarity what items enter into
ne cost of product. The product
Th'ch railroads are selling is transporta-
uoh OF passengers and goods. The price
Ut me product is the rate"