The Washington times., 1919-02-18


at has frequently been ASSERTED
that the railroads under private own
ership had broken down, and that il
became necessary on that account for
the Government to take possession
and assume control Of the physical
properties. 1 cannot agree with those
who hold that opinion, nor can I anC
anything in the record o. perform
snce Of the carriers under priva Ce
control and operation, or IN the record
OF performance during twelve months
Of Federal control and operation tina
gives support to that assertion. Or
the contrary, the record OF actual PEI
Torrance under Federal contol Of the
same poperties with almost exactly
the same facilities and with substan-
TALLY the same official staff, is the
best and most convincing evidence
that the railways, both as TO physical
properties and personnel, had moi
only not broken down, but were in
fact most efficient agencies OF trans
2ortation.
Railroad facilities. particularly IN
the East. have been developed to
meet the normal peace-tine. require
ments o. commerce, with an excess
capacity sufficient for such increased
demands as might reasonably be eX-
pected.
Neither a Failure,
Private ownership and operation
have not failed. Regulation as a
Government policy has not failed. 1t
has been clearly shown, however,
that = system of regulation designed
for peace time conditions might not,
and in fact did not, properly func-
IN NJ nnd If
necessary to act promptly, the Gov
eminent assumed control of the rail-
roads and proceeded to run them as
IL there were no restrictive laws ana
regulations.
Actual experience now leads to
the conclusion, so il seems to me,
that the railroads under private own
ership, and subject always to Gov
ernmental regulation, should be law
fully authorized to do whatever
would be done in the public interest
under Government ownership and
operation, or is actually being done
in such interest at the present time
under Governmental control and
operation.
II am in favor Of leaving the States
as free as possible 20 deal with all
matters affecting transportation, sub
ject only and always to the one quail
fzcation that they shall not seeker be
permitted in the interest Of any par
ticular State to place an undue bur
Gen upon the commerce Of all the
other States.
81 am not in favor OF such divi-
sion OF excess profits with labor as Nj.
Warfeld suggests, because such a
plan in my opinion would be eI-
tremely difficult Of fair application
and does not rest upon the right
principle. I believe thoroughly in
good wages, and If a man does work
Of unusual value he should receive
unusual reward, but the two should
go together, and that would not
necessarily follow under Mr.. War
fields plan. Private ownership and
operation will preserve and enlarge
the opportunities; Government owner
ship and operation, in my opinion.
would in a large degree destroy them
Opposes Five-year ExtenSiOa.
I am opposed to the fve-year extern
sion because believe that by the end Of
that period it would be practically i'm
possible 20 restore the roads to the
owners, and government ownership
would be the only alternative, and 1 am
opposed TO the policy of Government
D
roads. The occasion which justified
the taking over Of the railroads having
passed, II is now, so oft seems TO me,
the clear and peremptory duty Of the
Government to restore, as soon as may
be, the properties 50 taken, to the right
full owners.
II Congress as a minimum program:
1.-Will provide q definite rule for
alternating as related to capital, by
fixing an adequate percentage ratio Of
railway operating income TO the com
bfned investment account Of the rail-
roads as a awhole; and
2.-WfIl affirmatively authorize the
railroads to combine their properties and
operations, subject to governmental ap-
proval, as and when shown to be de-
arabIe in the public interest; and
3WfIl affrmativeiy authorize the
carriers TO issue securities for conStruc-
ton, equipment, enlargement Of their
properties, and for the refundinE OF OBJ
LEGATIONS, subject to exclusive supervi-
sion Of the Federal Commission and
"4-Wiu provide for the extension,
for a reasonable period, OF the in
Gebtedness Of the carriers for ad-
vances and loans made by any Gov
ernmental agency during Federal
control; and
"5-In addition, will either create
the new agencies which have been
suggested or enlarge and extend the
existing regulating agencies so that
matters requiring Governmental de-
termination may be promptly dis
posed Of.
Congress will then have dealt with
the matters Fundamentally essential