The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-01-14
WHAT WILL CONGRESS Doe


gress that the railroad situation had
reached a crisis in the sense that the
policy of the federal government must
be settled at once. He recommended
the retention of the railroads by the
government for five years, during
which period the credit of the United
States will be used to finance neces-
sary improvements and extensions. If
congress decline to adopt this plan.
he strongly recommends the return of
the railroads to their private owners
before March 4 next, or as soon as
possible. He does not advocate gov
ernme1t ownership or permanent con-
troll of these properties in any event.
II congress should adopt his five
year plan he says, my guess is that
the value of private control under
public regulation rather than govern
ment ownership would be demonstrat-
ed.''
No business man vine gives thought
to the subject, says a bulletin by the
American Exchange National bank of
New York, will favor government
ownership of railroads when the di-
rector-general, who has necessarily
studied the question, reports against
it. Some ia d. ists will clamor for it,
and it may be viewed with favor by
the holders of securities issued by
weak or bankrupt railroads. Such Sc
curity holders might have a chance
to get something in years to come if
the government held and improved
their property. For them government
control is a gamblers chance to re-
coup losses that should b. written off
If congress decides t retain the
railroads will it be able to resist the
demands of the holders of securities
of weak roads? Strong and prosper
Gus railroads will receive incomes suf-
ficient to pay dividends and int rest,
or government bonds in exchange for
the securities outstanding in the hands
of investors; and the government will
receive full value in highly devel-
oped and profitable property. The
weaker roads will call this "discrimi-
nation and we shall have years of
turmoil in Washington, while these al
legged equities are pressed for compen-
sation.
If the federal government retains
the railroads, will it protect the divi-
dends and interest on outstanding Sc
curities, or will it disregard these Sc
curities and operate the railroads sole
ly with view to providing adequate
transportation for passer Sers and
freight to serve the American people
What will remain of the existing
railroad organization at the end of
five years? The gre. executive chiefs
who have organized, built UP and di-
rected the principal railroads, and the
efficient staffs that have followed
their instructions will be forced to
seek other fields or retire from active
life. Who will take the pains to work
out the problems of improving our
transportation system?
In time of peace and under normal
conditions congress cannot comman-
deer the service of such men at a dol
lar a year. Will the government re-
tain them and pay them what they
are worth and can earn, or will they
| give place to bureaucrats who know
nothing about the railroad business
When the railroad administration add
ed 25 to 40 per cent to prevailing trans
portation rates the federal government
admitted that the railroads had been
starved into comparative inefficiency
for which their executives were not tc
blame. What could they not do il
they were allowed to charge compen-
satory rates under proper public reg
ulation?
Our railroads cannot go back tc
their old position. Interstate railroads
must be relieved from the in.erfer-
ence of state boards and commissions
and from the conflicting laws and
rules imposed by state legislatures. 4
the railroads have been trying to serve
forty-nine masters.
| Will congress enact a railroad Law
that will give all interstate railroad.
federal charters and thus automatica
ly eliminate all the state railroad com
missions that have been thorns in thu
flesh of railroads under private opera
ton?
Government ownership of railroads
| ~OuAO put at lcdSb AtuVo,uVV NOlSTS VI
the federal payroll. The solid vot'
OF government employees turnout tn
country might then control presiden
tial and congressional elections. ant
the United States might be governet
by its paid servants. 1t would be nee
essary to amend the constitution Il
order to disfranchise government EN-
ployes in federal elections.
The latest report on the buildini
and loan associations in the Unite,