New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1919-08-15
STRIKES THREATENING
BUSINESS MEN OF NATION FAVOR
PRIVATE OWNERSHIP OF RAILS.
CLERKS AND FREIGHT HAND
LERS ISSUE DEMANDS FOR
HIGHER WAGES.
Western Newspaper Union News Service.

Western Newspaper Union News Service.
Washington, Aug. 6-The railroad
problem is ~engrossing the attention OF
both the executive and Legislative
branches of the government.
Meanwhile threats OF hundreds OF
thousands OF railroad employees TO 20
on strike 10 force higher wages TO
meet the high cost OF living We're re-
llerated.
Demands also are being made by
$4,000 clerks, freight handlers and
sutton employees,
business men OF the country, as rep
resented IN the Chamber of Commerce
of the United States, favor private
ownership OF the railroads.
Based on Il referendum OF the
chambers $4,000 members, this an
nouncement was made following pub
l|Icntlon Of the demands of organized
labor for elimination Of private capital
from railroad ownership and opera
lion.
Announcement of the vote of 90 per
cent of the business men against gov
ownership was accompanied
by the following explanation of the
reasons ~actuating the decision:
II. Under government ownership
the development of railroad facilities
would depend upon congressional ap-
preparations and would prevent the
authorization OF the transportation
needs of the country. Appropriations
would not be made in the mount ana
nj the time needed TO insure adequate
DEVELOPMENT of the railroad. Political
considerations might also control the
amount OF appropriations and the OBJ
.iects for which they were made.
80. To acquire the railroads the
government would have TO pledge It's
credit for eighteen to twenty billions
OF dollars at II time when other large
f~inanceering must he done. 1t would
be difficult for the government to dis
pose Of the securities required To pur'
chase the railroads, and ii would be
necessary for the government TO Sc
cure from five hundred million TO one
billion dollars of new capital eacl
year.
IF the government were to assume
the burden of financing the railroads
nj the present time when the war debt
is 81 large, It's interest rate would
necessarily be as high as, II not higher
than. the rate at which corporations
could secure capital.
"3. Government operation is sell
dom. if ever, rs efficient as corporate
management. Competition, the incen-
tive to efficiency and progress In pri-
waite enterprises, is absent from the
government administration of affairs
Individual initiative is less, bureau
cratic methods are more character
Istic. and the services rendered are
less progressively efficient.
~. While the government would
presumably select officers n EN-
ployes by means of efficiency tests,
political influences would almost Ger
tainly he given weight IN selecting
mel for official positions.
-. Unless the government adopted
the policy of fixing low rates ana
fares with the intention that any re-
sulting deficit from operations should
be placed as an increased burden or
taxes upon the general public, rates
and fares would be higher under gov
eminent than under private operation.
Under government operation expenses
rise in relation to income and the
charges imposed by the government,
II a deficit is to he avoided, must be
higher than those which it would be
necessary TO permit railroad corpora
tions TO make.
IS. The political effect of govern
ment ownership and operation of rail-
roads in the United States might be
serious. There are now about JO0,OOO
civil employees of the government. The
addition TO the public services Of
2.Oo0.OOO railroad employees, the major
ity of whom are voters, would constr
tute a force Of about 100000 govern
ment employees interested in control
ling the policy of the government as
regards wages, hours and condition of
service. Such a body of employees
might easily exercise a controlling in
fluence