The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1919-02-11
RAILROAD MIDDLE


Government operation Of the railroads
according to the latest estimates, has cost
the people Of the country $1,500,000000
more than when under private operation.
During the last six months, if the figures
given are approximately correct, the
public under higher freight and passeng-
er fares, has paid $4,000, 100000 for tans-
portation This cost maintained another
six months, would make the cost Of trans
portation something like $5,500,000, 900,
as compared with $4,000,000000 paid in
1917 under private ownership and oper-
alton, when the volume of traffic hauled
was almost equal to what it is at the pres
ent time. Increased wages have been the
big item since the government took con-
troll, and it is estimated that the payroll is
nearly $1,000, 100000 greater than it was
when the president Communicated the
roads. The four big brotherhoods receiv-
an advance of $60,000,000 under the Adj
amson law, and did not profit to any ex-
tent from the general wage increase
granted by Director Geneal McAdoo last
year. AS result the brotherhoods are
insisting upon having their rates of pay
revised upwards. The wage board has
had the matter under consideration for
some time, and it is understood that
recommendation in favor of granting the
increase has been made to Director Gen.
.eral Hines.
AS a reduction of wages is said to be
out of the question, there is talk of anoth-
er increase in freight and passenger
rates. The roads have not been paying
their way under government control, and
of course, the increased wage burdens
placed upon them would prevent success
full private control unless new sources of
revenue can be tapped. The companies
We're solvent when taken over by the gov
erfment but they would be facing bank
ruptcy if the roads should be turned back
without provisions being made for the
cumulative deficits. Economies in opera
alton have been much too small to figure
in the problem now before the director
general and congress.
When the roads were taken over re-
volving fund.- of $500,000,000 was pro-
yided. New Diector General Hines has
asked Congress for $750,000,0O0 more to
supplement the original fund which is
now practically exhausted. Mr.. Hines
declares it will be necessary to approprl-
ate this amount regardless of whether
the railroads are returned to private
management within a few months or re-
tanned longer. In explaining the disap-
pearance of the revolving fund of $780,
100000, Mr.. Hines said that $l96,OOO,OO0
of the total represents loss to the gov
ernment incurred in operations last year
and that the remainder represents adj
vances to the railroad companies to be
repaid eventually with interest The
$750000,000 is needed for the purpose of
financing capital enterprises Of the rail-
roads, such as improvements and pur-
chase of cars and locomotives which the
companies are not able to undertake
without borrowing from the government.
1t would be almost criminal for the adj
ninistration to turn the roads back to
their owners without making adequate
provision for their operation under
private management, so it is probable
Congress will increase the revolving
fund. Yet that viii not suffice to main
ta Na properties if they are to be conf
70 carry their present burden to-
ether with another wage increase for
ot arhoods. The shippers OF the
Mn make vehement protest
another increase in freight rates.
consumers who have been paying war
prices for foodstuffs will also protest
because the cost of living will go up in