New-York tribune., 1919-02-12
A. B. Garretson, Spokesman
for Unions, Tells Senators
Step Would Be Ill Advised
Points to Unrest i'm L. S.
Objects to Government Guar
antee to Return the Roads
to Private Management
NeW YORK Tribuns
W1shiu0tO1t Buren1l

L
sidered move to reduce the wages of
railroad employees will feed the flames
of Bolshevism. This, in substance, was
the warning held up before the Senate
Interstate Commerce Committee to- day
by A. B. Garretson, spokesman for the
brotherhoods and railway unions, who
resumed his testimony in behalf of
government ownership of the railroads
and cooperative management of them
in the interest of the employees.
"Any such attempt to reduce wages, "
he thundered, "is going to strengthen
the avowed forces of discomfort! AS
one who knows the danger this country
is facing, I tell you we are as near a
powder mine as one can imagine. And
careless spark is likely to start a
conflagration the end of which is diff
cult to foresee. Watch what has gone
on in England during the last three or
four months. Discomfort has got be-
yOnd the stage where you can patch
it up as you would the old one horse
shay. You have to provide a remedy
that is based upon q deep and thor
ough study Of the underlying causes of
this discomfort. And unless we, So
called democratic people, are prepared
to rectlfy these causes to very con-
siderable degree, we shall only add to
the strength of the flame, which, at
last must communicate itself to a suf-
ticient body of the people as to upset
that which was created by the fathers
who set up this government, and which
was fortified by the blood of succeed
ing generationS.'
Democrats Favor Delay
Mr.. Garretson will continue on the
stand tomorrow. The attitude of some
Administration Democrats on the com
mlttee seems in favor of delay, in such
way as to make difficult any action be-
fore the close of the session. Chair
man Smith, who was absent to-day,
sent through Acting Chairman Pom
creme q suggestion that the committee
abandon daily hearings for two hear
ings week. Senator Cummins object
ed. Action on the proposal was post
poned until tomorrow. Senator Pom
creme explained that the only reason
pressure Of other business made it ad-
visable not to devote SO much time to
the railroad question.
Mr.. Garretson registered again his
objection TO any plan of having the
government guarantee the return of
the railroads under private manage
mcnt.
Says Ii Would Be Fatal
But" interposed Senator Under
wood, of Alabama, 1--WE here are view
ing the question from the public
standpoint. 1t seems to me that in
any method of regulation under pri-
vate management, the government has
got to fix rates at point where rea-
sonable profits can be had on capital in
vested, or the railroads will be
scrapped"
"A government guarantee" persist
ed Mr.. Garretson, "would be fatal
mistake. 1t would place operation on
d plane of mediocrity"
But whether the roads are under
private or government ownership and
management" asked Senator Under
wood, "does not the operating af-
cheney in the last analysis depend on
the gray matter of the appointing
power?"
"On the gray matter plus the dis
position or desire to serve the public, y
was the reply.
Whether the roads are turned back
to their owners or retained under
government ownership, said Mr.. Gar
retson, valuation of the properties is
essential. 1t is vital. he said both
in determining rates, under system
OF regulation, or the purchase price, if
the roads are to be bought by the gov
eminent. Actual investment, he said,
should determine the basis of valua-
ton.
Senator Kellogg, of Minnesota But
are you going to determine actual in
vestment in the case of the roads
whose early records of construction
costs have been lost?
Easy to Figure Out, He Says
Mr.. Garretson-It is true that some
have. vanished overnight Wherever
possible. when they proved too much,
the records disappeared.
Mr.. kellogg-But fifty years ago in
building the roads out West many of
the promoters did not keep any con-
struction costs.
Mr.. Garretson-It is easily possible,
however, to get construction costs gen
orally for that period, and from that
figure the railroad construction costs.
Mr., Kellogg Take the case of a
road built through virgin territory at
a cost, say, of $1,000, 900. Suppose for
ten years that road did not earn the
interest en- that investment In buying
the property, would you have the gov
tIlHleHt dud 10 tne purchase price the
interest that was not earned during
that ten-year period?
Mr.. Garretson--As an abstract promo
sition no. Because if this interest
were paid it would not go to the men
who originally lost on the investment,
1or even to their heirs. Railroad
cwnerships change rapidly. How many
OF the original promoters have sur
vived? And if you could not Pay the
interest to those who lost it, why give
1t as velvet to those who now hold the
properties?
Mr.. Underwood under the Con-
sttution, after all, the courts must de-
termine whether the purchase price is
a fair one, and no law which Congress ss
might pass could deprive the courts of
this power Once we say the returns,
or the purchase price, shall be fair
and reasonable, that is as far as we
can 60
Says Tendency Is Toward Monopoly
Tho tendency of railroad operation.
Nr. Garretson said, has always been
toward monopoly from the day when
"Commodore' Vanderbilt first merged
two small properties into the railroad
! between New York and Albany and
Iald the groundwork of the New York
Central system The plan of Director
Genera Hines for six or twelve
regional railroad monopolies for the
entire country had for its logical corr
sequence, said the witness. q single
rGOnOpOlV for pl1rnosa, nc ofr;o;o,