Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-01-26
\ Poor Case

THERE are but two standards by which
l the public can determine whether gov
ernment operation of public utilities is to
the pubics best interest. These standards
are the character Of the service and the cost
of the service. Unless it can be shown that
the government, operating these utilities can
give better service at cheaper cost, there is
no standing whatever for the proposal OF
Federal control.
1t is by these standards that the proposals
of Mr.. McAdoo to extend the period of Fed
cral control Of the railroads, and the pro-
posal of Mr. Burleson to extend the period
of Federal control Of the telephone and tele-
graph systems must he Judged Thus far
they have fallen very far short OF meeting
that test.
Though Mr.. McAdoo and his successor in
the Office Of director general of railroads have
talked much of the economies that have been
effected under government operation, it must
be borne in mind that more than 40 per cent
OF what lie claims to have saved in the ope-
rating costs Of the railroads was saved ut
the expense of reduced service to the public
in the way o. Cancelled passenger trains.
The public Willingly submitted to this and
other Inconvenience in time Of war, because
it recognized that the first call on the rail
roads was for the transportation OF war ma
tcrial and everybody realized that 1t was
more important TO move a trainloal of am
munition than trainload OF passengers. But
if this Cancelled service is not be estored,
that peace is here, it means that the
service TO the public under Federal manage
ment is not going to be as good as service
under private management.
Moro than that, in spite of the Cancelled
service, rates freight and rates on pas
senger travel are higher than they ever were;
and while Director General Hines denies that
he has made up his mind to call for still
higher rates on freight, he does not deny
that he may do so. 1t is difficult to see how
he can avoid it, under the governments
policy Of constantly increasing wages and
charging them against the public. AS it is
now shown by revised figures. the raise in
wages last summer cost the public not $780,
100000, as Mr.. McAdoo estimated when he
fore the Senate committee. but $500, 900 900;
and the rumor persists that there is soon
to come another increase in the wages OF the
brotherhood union men that will make the
total increase in the railroad pay roll under
government operation approximately $1,000
100000. Somebody has got to pay it, as Mr.
Average Citizen will discover when he paws
his butcher, buys his clothes and pays his
rent What Mr. Mchdoo foresaw as Il $780,
600, 600 surplus by the end OF this year JUS
tifying cut in freight rates, now looms up
under the revised figures. as Il probable de-
felt Of from $150,000,000 to $25O,000,OO0.
So that. as far as government operation OF
the railroads shows up TO now, there is in
prospect poorer service III more cost than
under private management
The case for the telephone and telegraph
is no brighter. The service has not been
improved, and there is much in the testimony
before the House Post Office Committee to
show that it is decidedly worse Toll rates
on telephone calls throughout the country
have been raised Figures submitted for
Minnesota, by way Of example. show that the
minimum toll rates fixed by the Postmaster
Gchcral lor That state, and now in effect
average Just IA per, cent more than they
did under private management and in some
Instances the increase is as high as ISL per
cent
Wherein have the friends of extended Fed
eral control proved that the public interest
lies in the direction they point out?