The sun., 1919-07-14
HOW CONGRESS CAN HELP
THE RAILROADS.
Means Needed Whereby to Correct
Promptly Any Injustice Done Under
Federal Control-No Compensation
Yet for Coastwise amship Lines.


In the opportunity which Congress
now has to clear up the transportation
situation to some definite purpose
there is an important element which
has not received the attention II mer-
It's. This Is the means for getting
what the railroads are entitled to un-
der their contracts with the Govern
ment.
The commerce OF the country re-
quires an efficient, working, coordi-
mated transportation system just as
the individual factory needs to have its
trucks in sound and disable condition.
Just why the carriers have sand in the
carbureter. more than one cracked
spark plug, a damned dlfferential or
two, a few broken springs and tires
worn to the rim Is not the only ques-
ton to be answered. Unless the coun-
try's truck fleet Is genuinely and thor
oughly overhauled we shall soon be
down to the condition of scrap heap
efficiency. This will take time, and
time should be given to It. In the
meantime there are things that can be
done.
There are many respects in which
Federal control has contributed to the
finish of the wreck for which the In
terstate Commerce Commission had
the switches all set and the splits all
spiked in 1917.
There are many carriers that have
by no means had their dues from the
Government under its contract with
the roads. There have been cases in
which the Government seemed to take
advantage of the financial necessities
OF the carriers to drive a hard bargain
This may have been smart" but II
| was not right, and the real penalty for
the wrong falls on the public. In
many cases the carriers have not been
! able to come to terms at all. and in
some cases they have been able to re-
sist the terms the Government has
sought to impose upon them.
In the Federal Circuit Court Of APP
peals Judge Severens once said:
II derosates from the dignity and
| character OF the Government to sup
pose that formed as II Is to secure
| impartial Justice between individuals. IT
may nevertheless in the conduct OF Its
own AFFAIRS without regard to the prin-
| ciples IL represents, perpetrate upon Its
| citizens wrongs which 1t would promptly
condemn II praetised by ono OF them
upon another.
In many cases and in many par,
| ticulars the Railroad Administrator
| has not dealt with the carriers as the
courts have required citizens to dea
with one another.
An instance Is the treatment &C.
corded the coastwise steamship lines
| When the railways were taken under
Federal control these lines. four o.
them, were all operated under requisi
ton charter by the Shipping Board
They were completely In Government
service and wholly under Government
direction and control.
In. taking over the railways tn,
| Railroad Administration had to tax,
over the steamship lines operated as 6
| part Of some railways. Some lines OIL
this character operated in the same
| territory as the Independently owned
coastwise lines. While there was nc
| question OF service to the Government
or the public, as the independent
| lines were in Government service
there was an important difference
in compensation between these line:
and the railway owned lines. AS &
part of the railway system these lines
could expect compensation based only
on what has come to be known as III
STANDARD return" The railways owned
all the stock in them, where the owner
ship was not outright, and the &C
counts were kept so far as possible tC
throw the showing of earnings int
the railway statement rather than int
the steamship statement. 1t was earn
ings determined largely by that condi
ton that were to be the measure o
compensation for the railway owned
boats, while the independent line!
were already receiving the requlsitioI
charter rates Of the Shipping Board.
Without cancelling the charters
which the Government had entered
into a proclamation was issued TAX
| ing these four lines over under the
same conditions as the railways wer,
taken over. 1t happened that thes'
| lines were sufficiently prosperous t,
negotiate without asking financia
favors from the Government. The!
|
Railroad Administration in April. ant
in December, without a moments no
tice, they were relinquished. WheI
they were taken over their cash wa,
taken along with the property. Up
ward of $50,00o,000 OF property wa!
used eight months and its earning,
taken. and not only has no compen
sation been paid but none has beer
agreed upon
One OF the lines refused to accep
REIMBURSEMENT. but the three other
accepted IT, When the lines were re
linquished the power Of the Director
General to make compensation termi
mated, and these lines are left to sucl
remedy as there may be at the enc
OF long and tedious wait in the cor
ridors of the Court OF Claims while 1
war clogged calendar drags through
its weary processes.
| In the case OF the coastwlse lines
| however, another angle develops
which should interest Congress II an!
thorough consideration is given to thu
treatment of the carriers by the Gov
eminent. When these lines were re
linquished the Railroad Administra
ton was OF course still operating thu
railway owned steamship lines. Tit
independent lines could not operate
never had operated. without the bust
ness arising out of through traffic
routed to them by or through the rail
ways. After REIMBURSEMENT they go
none Of this routing. with the result
that old established lines which haS
| .A...nd Ahron nanarafInna of S0lli herr