The Rathdrum tribune. (Rathdrum, Idaho) 1903-1963, 1919-07-11
The RAILROAD PROBLEM

highways were taken over by the Gov
eminent as an indispensable arm OF
the national defense; but now that
their war service is over, there Is q
countrywide demand that the Gov
to be operated on normal American
business standards Of efficiency.
But, as has been pointed out by
President Wilson as we'll Rs by many
men in public life who have given
this subject years of careful study,
1t is not enough simply TO say to the
railroad companies, Take these rail
roads and give the country the best
transportation service that money and
brains can provide"
Old Laws obstruct Growth.
The President recently said that 1t
would be serious mistake to return
| to the old conditions OF railroad regu-
latiop without reforming the anti
quated laws that were obstructing the
free development Of transportation fa-
cilities. The Director General of Rail-
roads has recently made an inspection
trip from coast to coast, and he has
been telling the people that the time
has now come to put the railroads on
sound foundation.
The plans for better system of
national control Of railroads are as
varied as were the plans for banking
and currency reform when Congress
received a mandate from the people
to provide insurance against financial
panics. The public now demands in
Surance against a breakdown Of rail-
road transportation, and the new Con-
gress Is undertaking this work as sec
ondary only to insurance against In
ternational warfare. Congress solved
the banking problem seven years ago
as non-partisan issue, in which all
the people had common interest, and
Congress evidently Is tackling the
railroad problem with the same spirit.
While the many plans that have
been proposed differ in the methods
to be adopted in reaching the desired
goal, 1t has been pointed out by Sena-
tor Cummins Of Iowa that all these
plans have really very much in com
mon-so much so that he is confident
that Congress will have little difficulty |
in framing bill that will meet with
popular approval, and that will take |
the railroad question out of politics
for many years to come.
Many Plans With One Aim.
The Iowa Senator has command
ing position In this Congress because he
Is the ranking member Of the Interstate
Commerce Committee of the United
states Senate, and 1t Is In this com
mlttee that the new railroad bill will
take nnal form. In an address before
national meeting of business mon
&c ST. Louis Senator CummIns stated
mat since the close Of the war fully
Ihirty complete plans for new railroad
legislation had been submitted to him
y business men, economists, bankers.
'allroad officials and owners Govern.
nent officials, railroad workers and
lust plain citizens.
The basic principles upon which oil
u these plans, with one exception.
agree are as follows:
7. Private operation Is more Eff.
cent ana more economical than
government operation, and the
pubic Interest will therefore h.
served by return Of the roads 10
private management.
<. To make certain that n.v
capital will be attracted to IN.
expansion Of railroad faelII,I..
mere ought to be greater certain,
~ tnat fair return will be earn
ed on the investment
D. The merging Of weak and
strong roads into large COMPETING
'y''ens should be encouraged.
Inc making of a formula to nro ,
'ue 1air return on railroad conItaI
Gems likely to be the nbase 80 49,
ioolenl most thoroughly debated IN
ongress' The Director General hos |
ven urging that the Government a
1e"' " guarantee certain return
u snare IN any excess earnings
eaulns bankers, especially soma ~ |
ie international bankers in Wal |
Ieet' VINO have in the past morkotod t
any hundreds of millions Of roiIrooJ :.
also look favorably on the
OF a Government guaran.
e which will make it easier TO sell \
:" securities, and will also stobtliva
'e market for the old bonds and :,
ockS. uS ana e
government Guarantee oppo.ed :
nut the proposal that the Govern :"
ent snail guarantee the interest and u
on private capital invested CT
railroads will undoubtedly meet S
TN very vigorous opposition in many r.
larterS. Even railroad executives =
no might be supposed to take kindIv
the Idea Of Government guarontao r
alnst failure, have frankly stated
at they do not want II, because tbsv