Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-08-28
RAILROAD ORGANIZATION

Several plans. and parts Of plans. have been sug-
gested for the organization OF the railroads when the
government shall cease its control of them as a war
Measure. Some Of these plans contemplate the purchase
Of the railroads by the government outright and their
permanent operation by Il. Others contemplate the res
iteration TO private control under some mpre complete
form of government. regulation than has been the case.
in the past. Whatever disposition may be made of the
property there must be maintained some relationship
between income and expenditures, and there must be
some provision made for the earning Of profits and the
distribution Of profits. The most comprehensive plan
that has been suggested. embodying the feature Of GOV
eminent ownership, is what is known as the plumb plan
under which it is proposed that the railroad properties
shall be purchased by the government, that they shall be
operated by a commission consisting of representatives
of the government. the operating Officials and the gen.
eral body Of employees. It is proposed further that net
earnings in excess of a stipulated sum shall be divided
according to a basis which is named. 1t will be sup
posed that the element of profit is included in this plan
as well as in those which provide for renewed private
ownership.
There can be no such thing as a rigid basis for prof
its. We can not say for instance that the railroads shall
be guaranteed a net return of 5 or s per cent and no
more. Ono Of the things essential in the transportation
business is a reasonable degree of stability and almost
absolute uniformity in rates. In general, two railroads
operating between the same two points must charge the
n price LOT the service, even altnOQgh the mileage
varies somewhat and one road might be able to conduct
its trafic betveen those points at a slightly lower rate
Some railroads are SO situated that operated by them.
selves they could never make profits. They are used a.
feeders and as connecting links between other systems
and because Of this usefulness it is considered fair tina
they should participate in the profits OF the more pros
porous concerns which they serve.
To fix a rate at which it would be possible for ever,
railroad in the country to make a stated profit would en-,
able some roads to make several times that profit. Tt
fix a rate which would permit the most advantageous,
situated and best managed railroads only a reasonable
prafit would drive other roads into bankruptcy. It IL
therefore considered desirable by most students of the
problem to organize the country into several great trans
partation districts in each Of which all Of the roads wouli
be operated on a Joint or pooling basis. The entire rail
road facilities In that district would constitute in enec
one system, and the smaller and less fortunately sit
mated roads would participate in the profits made by tn,
entire system because Of the service which they rende
as parts OF the system. A plan Of this kind was outlined
By MIR McAdoo shortly before he retired from railroat
work. 1t has been advocated by his successor, Mr.. Hines
scheme as the plumb plan should be adopted some form
Of organization similar to this would undoubtedly b.
found necessary. Under no circumstances can we return
70 the old system of scattered railroad control. :