The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1919-10-08
HIGHER COST
OF SERVICE
Plumb Plan Snare To the
Public
RATES SURE RAISE
Would Increase The High CosS
OF Living

One Of the most important questions
raised by the Plumb bin for the pur-
chase Of the railroads by the govern
ment aid their operation by the en-
ployes. in large part for their swu ben
ent, IL whether the cost OF railway
service would be increased or dimin-
ished. Would It cost more or less TO
travel than 1t would at the same time,
under the same general conditions IA
the country. IL the railroads were Ia
the possession OF the corporations
which Low own them? Would pro-
ducers and consumers have to stand
higher rates for moving merchandise,
or could the work be done more cheap
ly7
The advocates Of the NATURALIZATION
Of the railroads say that they would
serve the public at less cost. They
claim that the employees would work
with more heart and enthusiasm; that
the sum required TO pay the interest
on the bonds TO be sold to buy the
roads would be much less than the
total OF the dividends on railroad
stocks and the interest on railroad
bonds; that unified control and man
agement would insure large economies
in the use Of equipment and greater
efficiency in the entire business, and
that the bonds issued by the GOV
eminent to buy the roads would grad
ually be paid of and would finally dis
appear. with the effect OF lifting from
the partors OF the railways the whole
burden now represented BY dividends
and interest on railroad securities.
The trouble with these theories La
that they do not 1T welLknown facts
They cannot be squared with the ex-
perience OF this country and other
great nations. They do not rest on
the solid foundation of human nature
1t is certain that the adoption of the
Plumb plan would have the immediate
effect of making all railroad employees
feel that they, and they alone, were
complete masters Of the railroad prop
erty of the country. The plan pro
vides that five of the fifteen directors
who are to be supreme in the control
of the railroads are to represent the
national government. but they could be
out-voted two TO one by the employees
who had the other ten directors And
If the railroad brotherhoods won 30
tremendous q victory in public policy
snd the shaping of governmental
action as the Inauguration of the
Plumb plan would imply they would
feel. with good reason. that they could
make the government jump every time
they cracked their whips
This certain and perfectly natural
assurance that they were the sole
masters OF the railroads would quickly
give them the point of view of virtual
owners Of property they never paid
for They would look upon the rail
roads as theirs. TO operate for their
interest That would be human ma
ture
And the shortest. surest way to get
the most they could for themselves
would be raising wages higher and
still higher. and cutting down hours of
work TO the lowest possible point.
There would be less incentive TO in
dustry, because there would be much
less fear OF the penalties OF Incidence.
The morale Of the men on the trains
and in the yards and shops would be-
come lower instead OF higher.
The proof is found in all government
service. Il is VIGOROUSLY Stacker and
less energetic than work in private
life. Il shows more waste and poorer
results Ii turns out what has been
heen for generations. In rhe govern
ment departments at Washington and
IN city halls everywhere, and what the
country has watched IN the govern
mental operation OF the railroads dur
ing the last two years.
The practical test has shown that
possible economies in the use Of equip
ment and in unified control have By no
means Offset the drawbacks incident
to and typical OF government manage
ment of the railways.
The argument that the interest
charges on government bonds issued
TO pay for the railroads would be much
less than the present total of divi-
6ends and interest charges, is based on
gross misconceptions OF possible
prices and markets for such securities
az TIC dIlOuut L44dl UOQlG nave 10 D6
issued
All experience with government
ownership and management OF large
properties teaches that il Is vastefu!
6nd incompetent. Under the Plumb
Plan the government would own the
railroads and the employees would run
them. Their interest would lie. as
they would see IT, In the direction OF
the highest possible pay for the lesst
possible work The wages would be
sure and immediate. the possible divi-
dends distant and uncertain They
would all. managing officials included.
take the sure thing at hand and let
the chance Of dividends. out ef posi-
bic surplus earnings. 70 be shared
equally between themselves and the
national treasury. go with hardly a
thought
1t means higher rates Of freight
transportation, higher fares for pas
sengers. 1t would certainly force UP
the cost Of ali railroad service. and the
cost of living would rise accordingly.
Relief for the Nervous
The treatment for nervous disorders