Ladysmith news-budget. [volume] (Ladysmith, Rusk County, Wis.) 1907-1927, 1919-03-07
GOVERNMENT CON-
troll TO BLAME

lhOL IL DLAME
In spite of advances in rates which
Welded about 5000. 100000 in earnings
during the six months they were in
effect. the Railroad Administration
closed the year with net deficit of
100000 900.
The railway companies for several
years had been petitioning the Inter
state Commerce Commission to adj
vance passenger and freight rates.
They claimed this was necessary be-
cause of increased expenses. .Advo-
Gates of Government ownership con-
tended that rates in this country were
relatively high. and under government
operation could be reduced. Within
six months after government operation
was adopted the Director General. con-
fronted by enormous increases of eX-
penses. put into effect an advance of
Approximately 80 per cent in pasSen-
ger fares and % per cent in freight
rates. This is costing the public at
he rate Of 81 .200000,000 year.
Are the great increases of expenses
which have occurred and the large adj
vanceS in rates which they have neces-
STATED attributable partly. or even
largely. to government operation? The
writer has followed the. Developments
as closely as daily contact with rail-
way operations and constant study OF
the data available have been possible.
and he has no hesitation in expressing
the opinion that q large part OF the i'll
-rcaSe in expenses has been due to gov
arnment operation and would not
have occurred under private operation.
Space will not permit the information
upon which this opinion is based to be
presented in full. Two important
points may however, be mentioned:
First. the way wage adjustments have
been made has resulted in many en-
ployees being paid much more than
their services are worth. than the i'll
crease in the cost of living justifies or
than is necessary to keep them in the
service Second, the adoption of gov
eminent control, resulting in the trans
fer of authority and initiative from the
managers of the individual lines to a
central authority. has reduced both the
opportunity and incentive of the man
ayers of individual lines to continue
the struggle to keep down expenses, ,
has largely destroyed the intense
emulation between different managers
which formerly existed: and has so re-
(luced their control over many en-
plOyees that they cannot get as efficient
work from them as formerly. Some
IF these are effects Of government OPP
Grafton which were repeatedly pre-
llicted. which probably are unav0id=
able. and which partly explain the in
crease of expenses.
Mr.. McAdOo. who was Director Gen
eral throughout the first year of uni
fed Government operation, but who
has since retired. contends that the re-
suits gained in 1918 should not be ac
cepted as test of the value Of this
system. He argues that it should be
tried eXperimentally during five years
of peace. For reasons already given.
the conditions OF war were really ia
vorable rather than unfayOrabe to
making his policy a success.
Mr.. McAdoo's attitude is a conces-
sion that if the system he has estab
lished is to be measured by the results
thus far secured. it must be held a
failure Certainly the results thus far
produced constitute. so far as they
bear upon the question. a strong argu-
ment against. rather than in favor of,
permanent government ownership and
operation. There is hardly an argr-
ment that has been advanced IN favor
of government management. whether
regarding service. or financial effects
upon the public. which the results of
Mr.. McAdOos years work do not en-
phatically tend 10 refute-Coller's
Weekly