The review. [volume] (High Point, N.C.) 1908-19??, 1919-01-23
RAILROAD PROBLEM QUESTION OF
STUBBORN FACT, NOT OF THEORY
McAdoo Fayors FeYear Test Period in Which to Prove Which
Is Better Government Ownership or Private Ownership
Wisely Regulated Under Superior Authority
of Federal Government


are not relished by some railroad cor
pOrations for competitive and there
a., fore selfish reasons. Such improve.
ments would result in great econO-
mics, without which 1t probably would
be impossible to reduce passenger or
freight rates during the ..twenty-One
months period. It is impossible to
carry forward an adequate program
Of improvements and to demonstrate
those operative economies which will
cheaper transportation In q shorter pc
Rod than five years.
Must Keep Out ct Politics.
would prefer not to mention poll
tics In connection with this problem.
because primarily 1t Is an economic
question. But we must not be blind.
The American people have been dis
cussing the railroads for generations:
almost every man In public life has
gone on record on some phase Of the
subject. In 1920 there will be presi-
Dental election. It is idle to suppose
that under such conditions it will be
possible during this or the next con-
gress to secure calm and deliberate
consideration of the ultimate solution
Of the problem, much less a fair and
adequate permanent settlement. This
vital question must not be settled in
the heat or passion Of partisan poll
tics; 1T must be dealt with in the calm
Of an inter-presidentia election period.
Some Of the opponents of the sug-
gested f1ve-year extension Of federal
control appear to do so on the ground
that the operating revenues during the
year 1918 will be insufficient to pay
the rentals guaranteed to the owners.
They forget that most Of the wage
increases granted to employees took
effect January 1, 1918, whereas the
increased passenger and freight rates
did not go into effect until six months
later. If increased freight and pas
genger rates had gone into effect Jam
uary 1, 1918, at the same time as the
wage increases, there would have been
no deficit. They also forget that the
government took over the roads when
they we're completely paralyzed and
when the greatest congestion of traffic
in their history was upon them. 1t
cost the government millions Of dollars
to clear up the congestion and get the
railroads running again efficiently.
They also forget that blizzard followed
blizzard, and that it cost much money
to overcome their effects. They for
get, too, that the price Of coal, Of steel,
and of other supplies was far above
normal during the past year. These
added expenses all would have had to
be met had the roads continued under
private control, and to pay for them,
rates would have had to be increased.
Private operation the past year would
would have been greater perhaps than
under government management.
Economies Can BE Effected.
Under peace conditions, and with
period Of five years Of federal control
assured, it should be possible to main.
tain existing wages and working cOndiS
tons and to effect such economies.
that reductions in rates, both passen-
ger and freight, ought to follow with
in q reasonable time. UnQuestiOnably
economies can be effected under uni
fed control that cannot be practiced
under diversified control. Already the
extra charge OF one-half cent a mile
for riding in sleeping cars. imposed as
a war measure, has been removed. and
other restrictions enforced by the war
are rapidly disappearing.
Unfortunately some Of the oppOsi-
ton to the proposed five-year extern
sion is based on dissatisfaction with
service given the public during the |
war. It is argued that conditions have |
been bad, although this is not true.
1t can be stated as fact, which cam
not be successfully cOntradicted, that |
service has been greatly improved un-