The sun., 1919-03-09
ELLIOTT PLEADS
FOR ROADS RETURN
Before; Chicago Club President
of Northern Pacific Attacks
Federal Control.
GIVES CONVINCING DATA
Urges Government Supervi-
sion and Direction of Opera
ton Through Companies.

~ o.
CHICAGO. March S.-Early return OF
railroads to operation by the companies
which own them and passage OF con-
structive legislation to enable private
operation to be made successful were
advocated by Howard Elliott. president
OF the Northern Pacific Railway. in an
address before the Commercial Club OF
Chica 90 tonight.
Mr.. Elliott presented some data OF
contrasts between the situation Of the
railways under private and under Gov
ernmept operation.
1.-THE Pennsylvania System" he said.
, furnishes 1919 per cent. of the total ton
mileage and 14E per cent. Of the total
passenger mileage of the steam roads
OF this country. On December 81, 1917,
that system had 233.600 employees and
on December 81. 1918, 27sIo1 en-
ployees. Although the ton mileage
handled In 1918 was less than IN 1917
the latter year under private control
nearly 10000 more employees weSe re-
quired to handle the smaller volume OF
business.
These statements are not made IN
criticism OF the Railroad Administration
or Of members of 1t, but simply to em->
phasise the point that the system of
Government operation Is not productive
OF best results. With the same railroads
little better equipped in 1918 than
in 1917 and the same officers and men,
but with different organization and d.
rection, and with the head men working
as hard as human beings could work.
and with vast war power and freedom
from restrictive laws. Government con-
troll had the effect of reducing that tire
less energy and Individual initiative so
important to the success Of an enterprise.
and the total output Of the railroads was
less than in 1917. and very much more
costly to the country.
Tederal Control Un-American.
Il cannot believe that human nature
and the art OF Government have devel-
oped sufficiently to make Government
ownership anG operation successful to-
day. I do believe that embarking on
the sea Of Government ownership and
operation involves a risk Of shipwreck
not only to the railroad system Of the
United States but to some fundamental
theories of American life and effort
which have made US a great nation.
The railway executives do not believe
in the regional plan under which all rail-
merged into one system. They believe
that our geographical. economic and
social conditions are so different from
those existing in foreign countries that
Ne must solve our problem in our own
way and not adopt a plan because some
other nation may have experimental
with II. The present great systems of
railroads have been built up in the last
forty. ffty-even seventy years-and
they have developed along certain lines
and are now a part OF the industrial and
financial structure OF the nation.
Small, unsuccessful and weak lines.
dependent upon connections with great
trunk lines, must gradually be absorbed
and become part Of larger systems, as
in the past
Regulated competition. especially as
to service. should be continued between
great systems. Without reasonable
competition development and introduce
ton of most improved and advanced
methods for giving service to the public
will be checked.
Labor Question Is Cruz.
what is called the labor question is OF
course one of the most serious and diff
cult confronting the whole world. the
railroads In particular. and there must
be a broad view OF 1t and a spirit of
give and take by all classes of people.
All good citizens desire to see wages
and living conditions improve, but there
is a limit to what commerce and IN
dustry can pay and survive. 1t is surely
better to have reasonable wages and
continuous employment rather than to
force wages so high that industry lam
Suishes, for then the wage carriers them
selves will suffer most Of all.
'Some have suggested that the Gov
eminent guarantee a fixed return upon
railroad property. The railway eSecu-
lives believe that a guarantee would
tend to reduce initiative and retard
efficient management and they do not
ask for IT. They believe with adequate
rates, reasonable liberty to act and good
management. roads that have been
wisely planned. honestly financed and
well managed can sustain themselves,
Poorly located or unwlsely promoted or
badly financed roads may have to reor-
ganiZe or merge with other roads.
"One administrative step that might be
taken in the not distant future and
would pave the way to return to private
- ownership and operation is this sugges-
lion and believe it would help the
situation.
let the President continue the cen.
trail organization In Washington under
Director-General, who. with his STAFF
VIII supervise the whole situation, di-
rect policies and make those adjustments
with railroads required after govern.
mental control ceases. This central or.
e"nisation should direct--tre opasasor
q the railroads through the companies
themselves rather than through a sys.
fem OF regional directors. In other
words, say to the boards of directors
end executive officers of each company
that from and after given date they
are to take charge of their properties
and manage, maintain and operate then
FOR the account Of the United States and
80 may be ordered by the President
through the central organization"
IL Held 20 BE Com m on Carrier.
wAsHIN6roN. March s.-The Cn.or