Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-01-06
RAIL ROADS PLAN
CAMP PA|GN AGAINST
j. S. OWNERSHIP
Otto Kahn Says It Would Re-
suit in LesSened Efficiency,
Stagnation and Creation Of
Political Machine.

Philadelphia, Jan. 5.--Opposition
to prolongation to five years of gov
ernment control of railroads was re-
iterated today at a session of the AS
sociation of Railway Executives. Nine
ty-two per cent of the mileage of the
country was represented and virtu-
ally ever railroad had its president
there.
An elaborate presentation of the
complaint of the railroads has been
prepared and this VIII be laid before
the senate interstate commerce com
mittee at its hearing Wednesday. A
committee of six will then appear on
behalf of the companies, 7. De Witt
Cuyler, Pennsylvania railroad, chair
man of the Association of Railroad
Executives; Alfred =. Thom, counsel
for the Association: Howard Elliott,
president of the Northern Pacific;
Julius Kruttschnitt, president of the
Southern Pacific: Samuel Rea, presi-
dent of the Pennsylvania, and Daniel
willard president of the Baltimore
and Ohio
Mr. Cuyler made public tonight a
letter from Otto II. Kahn, of New
York in which Mr.. Kahn states his
objections to a policy of permanent
government ownership and operation
of the railroads and to Director Cen
eral McAdoos proposal to continue
the present government control for
| five years.
Views Summarized.
MIR. kahn's letter,,t commented
| Mr. Cuyler clearly and concisely sum
| mariZes the views held by the Assocla-
tion of Railway Executives" The let
| ter in part follows:
From the point of view Of the mon
| etary interest Of the investor in rail-
| road securities. the prospect of gov
| ernment ownership and operation
| which would relieve him of risk and
| make his income stable and secure
may be attractive.
| From the national point Of view
| however, I consider government own
/ ershp and operation as gravely and
| far-reachingly detrimental socially
economically and politically 1t is in.
compatible with our system and
| methods of government and with thhe
|
at would mean lessened efficiency
and lead to stagnation and re'rogres.
sion. It would mean the setting up OF
huge bureaucratic machine, politi.
| cal wire pulling and log-rolling. large
| ly increased cost to the merchant and
| farmer; indeed, largely increased cost
| all around and many other evils.
Can Provide Rcgulation.
| 1--WE are in the fortunate situa ior
| of being able through constructive
! legislation providing among othel
| things for strong, but not stranglint
| government regulation and supervi
| sion, to correct such shortcomings IL
I! the system Of methods of private
/ railroad management as experienc,
| has disclosed and to secure for tn,
| public practically all The tangible ad
/! vantages which are Claimed In favol
, of government operation, without de-
| priving the nation of the inestimabl,
! advantage of private initiative and en-
| terprise and competitive service.
| "If government operation is contin
ued for five years, a situation viii
have bee ncreated financially and 9th
erwise which, ] believe, inevitabl,
| means at the very least that the re
turn TO private management coulc
| only be accomplished after a period o'
! turmoil, distress. bitterness ant
heavy loss and in the face of immense
| difficulties.
LEGISLATION to correct the short
comings and incongruities of the pres
ent railroad situation and to estab
/ lish a system of railroading advan
| tageous to the public and fair to th'
railroads, offers no problem of exces
| sive difficulty. Such legislation car
| be had-if at ail--within two years
| just as well as within five years II
fact, it is more likely 20 be obtained
| within the shorter than within thu
longer period.
ITO return the railroads to private
| management, especially after thu
! grave changes which government ad
/ ministraton has wrought in their val
ues without adequate legislation woult
lead to serious financial and economic
/ disturbances affecting the entire struc
ture Of national credit"