The Washington herald., 1919-01-21

z
way. in which the Union Pacific had
been built up within ten years. and
so qulCkened from its former desper-
ate, almost moribund condition that
It's credit was very high. its dividends
were excellent and the prosperity
which it had brought 10 the vast
country which il biseCted had in
creased the wealth of the United
States many fold more than the in
crease in the wealth OF the Union
Pacific itself.
Mr.. Hartman went on to say that
il was inevitable i'm his view, that
the railroads Of the United States be
brought together in some reasonable
manner and unifed, whereby undue
competition could be eliminated and
very great saving in operation Sc
cured. while at the same time rates
for traffic could be made reasonable.
He spoke OF the national banking sys-
TEN which Salmon p. Chase as Secre-
tary or the Treasury i'm LinCOln's ad-
ministration advocated and prevailed
upon Congress TO adopt. Here is a
banking system. Mr.. Hartman said.
which reaches from the Atlantic to
the PacihC. II is not as perfect as
il should be and the time is not dis
tant when II must be reOrganiZed
probably with central bank as the
core OF the system. But il illustrates
the advantages OF unifcation and CO.
operation and has been successful be-
cause the government has not only
stood sronsor for It. but also has wise
ly regulated and controlled it without
at the same time interfering with
individual initiative.
Views on Government Regulation.
Mr.. Hartman was persuaded that
| with wise. competent and Skfllfut
government regulation and control
no danger would Iurk in the unfit
cation OF the American railroad syS-
TENS. He sailed for Europe the next
day. leaving instructions that if he
were to be communicated with that
should be done through Otto H
Kahn, who had already revealed TO
Mr.. Hartman, as he has recently
revealed to the country. -. pro-
found grasp Of industrial transport
tation and economic and financial
principles as well as his adherence
of anything which savors Of pater-
nsIism or state socialism in the re-
lation Of the government TO the
people.
Mr.. Hartman already had ven
tured into the Eastern field. becom-
ing Interested in the New York Cen
trai and in the Erie as we'll as other
| Eastern railroads. He secured these
| interests because he contemplated
the upbuildinC of a unified coast
forecast railroad system. which
would be followed by that unftica-
| tiOn of the American railroad sys-
TEN. He was brought UP short,
however, partly because legislation
was threatened, in fact statutes
existed. which made his project i'm
| possible of accomplishment and
| partly because he felt that the In
terstate Commerce Commission
lacked either power or wisdom ade-
ruateIy to handle the railroad prob
lens.
Cooperation Basic Principle.
Today the Identical plan, at least
in many of its features. which Mr.
| Hartman advocated ten years ago.
appears to have gained the favor of
many who are in authority in Wash
ington. of influential members Of Con-
gress and no doubt a COnsfdera BILE ma
jority Of the people. For whatever be
the outcome of the recommendation
of the former director of the American
railroads. William G. McAdoo, or Of
the plea of his successor, Mr.. Hines,
which was made a few days ago that
Federal control of railroads remain
vested in the government for a Pc
riod OF five years, nevertheless under
lying these recommendations and un-
derlying also. various other projects,
even to some extent the plan worked
out by the railroad executives them
kselves, is the pr ncipIe of cooperation
and either limited or else complete
unificatiOn of the American railroads,
which Mr.. Hartman, with his far
Iseeing vision. earnestly advocated
latter he had been successful with the
Union Pacific, going so far as to say
that the success in the future of the
American railroads and the satifac-
tory relations which they should bear
to the people depended upon unifica-
ton, either complete or partial, in
yolving thorough cooperation, behind
which stood adequate government reg
ulation and control. The war and the
emergencies which It has occasioned
have caused a new point of view re-
specting American railroads to be
{taken by those who are in authority
BIN Congress and even by the people.
In fact, the very things which a
strict Interpretation OF the statutes
set aside by the government when
ne control of the railroads was ta-
gen over and things that were of
evil repute and against which the
bubble mind was strongly set. wers
dopted and put into more or less
uccessfuI practice by the govern
p1ent.
In the case of one railroad system
n extraordinary, almost absurd sit
alton was occasioned, for this rail-
load had been prosecuted by the
Government for alleged violation of
he statutes and saved itself from
ppearance in court by agreeing to
10 voluntarily what the Department
fsJustice insisted must be done.
nd vet when Mr.. NcAdoo took over
n the name OF the government tho
mericsn railroads this company
vas compelled to do the very things
Which had occasioned the prosecu-
on OF it by the Department Of Jus