The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-06-10
ACTION is DUE.

ACTION is DUE.
Congress should lose no time in taxi
ing up the railroad problem. Presi-
dent Wilson's message. cabled from
Paris at the opening off the present
session, contained the declaration that
the railroads will be handed over to
their owners at the end of the calen-
daF year" In this sentence was set
tied matter that had been debated
turnout the nation, without any gen.
eral agreement, from the time the
railroads were placed under federal
control, in December, 1917.
1t means that congress, within less
than seven remaining months of
1919. must devise. complete and frame
a bill upon which the whole future of
our railway system will rest.
The condition of railroad operation
in the United States has been so COM
pletely altered since private control
was replaced by government control.
that the required legislation will not be
arrived at in any simple fashion, or
by any bill speedily agreed to by sem
ate and house committees. The in
herent difficulties and perplexities of
the problem will in all probability de-
mand of congress all the time that can
be allotted for their consideration.
The greatest perplexity of all, OF
course, is that of determining how the
roads, upon their return to private
control. shall be enabled to restore an
equilibrium between their income and
expenses. and thereby be saved from
bankruptcy. For it is pretty we'll rec
ognized that without the national
treasury handily near, the carriers, as
operated by the government, and at
prevailing rates, could not possibly
continue to carry freight and passen-
gers and remain solvent
Practically from the first day of
government control the expense of
operating the railroads has exceeded
| their revenue, the margin of loss
growing steadily and very rapidly in
amount. 1t was hoped and in some
quarters predicted that the adverse
margin would cease with the ending
Of the war pressure upon traffic. In
stead of ceasing, it has rapidly in
creased. For the first four months of
| 1919, according to the director gen.
eral, the operating deficit of the rail-
roads amounted to $2SO, 100000, at a
rate of more than 100000 a day.
This deficit for four months of 1919
was greater than the deficit for the
whole twelve months of 1918. when,
according to the director generals fig
ures, it amounted to $236,1S0,000 or,
roundly. s65O.OOO a day.
| Reduction in wages is not regarded
as possible in the present, circum-
stances, and prices of materials neces-
sary in railway operation are not ex-
pected to fall substantially for con-
siderable time to come. Hence, two
alternatives are apparently presented
a guarantee upon the capital invested
in the carrier systems, or a privilege
to advance rates to a point that will
offset the increased costs of operation.
Both schemes, it is seen, involve
the public's purse, the problem resolv-
ing itself into whether a tax upon that
purse shall be levied directly or indi-
rectly. If the railroads be returned
with an adequate federal guarantee
upOh SdplIdi lhNeSteu' periodical dell
cts will be made up out of funds OBJ
tanned from the public thru the gov
eminent treasury. If rates be ad-
vanced, these deficits will be offset
by funds obtained from the public in
the payment for freight and passen-
ger movement.
In either case the people must pay,
and probably the majority will prefer
that the existing and prospective def
cit be made up by those who use the
roads rather than by everybody thru
the medium of taxation.