Evening star., 1919-02-23
BY OTTO II. KAHN.

II i IS one or the characteristic quar-
ties of the American people to
learn quickly. One years expe-
rience has sufficed to demon
strate to the people at large that
government operation of railroads
means deterioration in service. higher
cost. lessened eagerness to please the
shipper and study his convenience
not to mention the menace of politics
becoming a determining factor in
the fixing of wages, in new con-
struction, betterments, etc.
Every right-thinking man must
wish to see railroad labor, as indeed
all labor, content and literally com
pensated. The just claims of labor
are the first charge upon any indus
try. They take precedence over the
claims of capital. and even those of
the consumer in general
Increase for One Glass.
But it is not reconciIable with the
American theory of government to
give any executive department the
power, without a searching public
hearing before at least a semi
judicial body, to increase the wages
of one class of labor. as was done in
the case of railroad workers. by the
stupendous sum of about s600.000,00O
a year and to apportion it by rigid
and undiscriminating classification.
The increase in wages actually paid
in the year 1918 is officially stated at
$583, 100000. but / am informed that
when the increases granted are IN
full effect for complete year they
are expected to reach approximately
$500, ,000,0 900. The tax thus placed upon
the consumers of the country, par
ticularIy the shippers and farmers, is
comparable to the total interest on
our entire present net war dept tex
ciuding loans to the allies) and capi-
falixed at Az per cent. represents
pricnipal sum of approximately $ls,-
o00. .eo0. 900.
An increase in wages was justly
due; indeed, in many cases overdue.
No doubt, the committee seiecleo us
the director general. upon the 1nVestl-
cation and recommendation OF whicn
the action was based. did its work
ably and conscientiously.
Compensation of Capital.
II may not be inappropriate to point
ont In comparison to the increase OF
about $500, 900. 900 granted TO iaoor
over and above its existing compen-
sation that the total compensation
which capital Gncluding therein the
brain work and enterprise which have
gone into the building up OF the
American railroad sysfem) receives
in the shape of rental for all OF the
railways of the country. is about
$500. 900. GOO per year And that sum
includes interest on borrowed money
TO the extent of about $500. 0.000, 600 per
year leaving as compensation TO ire
owners of the roads the sum OF ABOUT
500. .oee. 900 fapart from @ about LIE slSsI-
laneous physical property ana non
operating income.
The total wages paid to railroad
labor for the past year are estimated
at -. 400. ooo, 900.
granted measured even by the huge
sum Of $500 80o. 900: at least as far as
unskiiled labor Is concerned. Tor II Is
bound to affect wages in other in-
dustries and particularly the wages
which the farmer has to pay
Program Which Is Favored.
rhe program, in support of which
believe public opinion IL cryssaiizing
i. Let the government exercise
strorg and comprehensive controi, but
fair and constructive. not punitive OF
Let those features of operation.
which under government management
have proved advantageous and con-
venient to the public be. preserved
and those features of legislation ana
admfnistration which experience has
shown to be unduly and unwiseiy
hasupering be aboiishsa. $500 -
missions. let their functions be so ad-
fusted as to avoid conflict with the
FEDERAL commission in matters of
rate-making and security issues.
4. Let railroading then be thrown
urfse and competition in service;
make It an attractive fleld for capi-
tai. and, above all. for men Of ability
and vision
W there liz one thing less desirable
than outright government operation.
n r. government control so minute.
hampering and all-pervasive as 10
he tAntamount to government opera
ffon without corresponding responsi-
bflity. Most of the plans which have
been put forward within recent weeks
from individual quarters would me an
this very thing. Their authors start
by declaring themselves utterly op-
posed to government operation. and
then devise a set of provisions which
to all intents and purposes are equiv
alent to government operation. or
would necessarily lead to it A fea-
ture 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 govern
.ment guarantee Of minimum earnings
for the railroads.
"Cannot Eat Cake and Have It."
The two things, i. e.. private man
ssremenr and permanent government
ruarantee Of earnings. are simply not
reconciiable. The railroads cannot eat
their cake and have it. You cannot
rent your house to some one and then
expect to be master in your house.
If the railroads want to have private
MANAGEMENT in fact. instead of merely
and rely upon public opinion for a
square deal If they are not willing
TO do that, IL they ask the people
/, to protect them by giving them per-
manent guarantee of minimum earn
fngs. the people will rightly insist
upon such minute and exacting safe
guards as to amount to government
operation.
Personally, I am wholly opposed to
the timid opportunism which would
barter away the reality of private
initiative and enterprise for a perma-
nent governmental guarantee of earn
ings. II we cannot as citizens sbe con-
WINGED that bureaucratic management
is preferable to individual effort we
must not as stock or bondholders per-
init ourselves to be bribed into max
ing a compromise with our conyic-
tions. And / am optimistic enough to
believe that by deserving the good
will and confidence OF the people, and
making adequate efforts to keep them
correctly informed. the railroads will