Perth Amboy evening news., 1919-08-04
RAILROADS AND THE GOVERNMENT

railroad bPOtherh0OdS In particular SnOuHu iva p0h ~
il is that they constitute a part of the public who MAKE up
this nation as we'll as the millions of others who are not II
rolled as members of any labor union. This thought is forcibfy
brought out by the statement issued Saturday Dy>'he our
brotherhoods of railroad employees in which they demand gov
ernment ownership Of the railroads on a proft-sharlnS basis
with employees. 3
Let us first consider the profit sharing features IN connec-
lion with something to be run by the government. Remember
ing always that the government is the people and by tine peo-
pleo we mean every man, Woman and child in the country, it
is pertinent to ask why should the profits OF anything run by
the government be shared with only a part of the people to the
exclusion Of all the rest?
Suppose the employees of the Perth Amboy Water Depart
ment. for instance, should insist that part of the profits of that
department be distributed among them alone. The idea would
not be considered for a moment.
But if the people of the city would not listen to the en-
ployes of the Water Department sharing the profits of the de-
partment exclusive of anyone else, why should the people of
the country consider sharing the profits of the railroad de-
partment, operated by the government, with the employees of
the railroads alone?
The cost of transportation is recognized as one of the big
gest items in the expense of everything. The higher the ship
ping rates are on the various articles the higher the cost of
those articles will be to the consumer---and those included in
organized labor are consumers along with all the rest. 1t also
follows that as the rates are reduced the prices will fall. Any
thing, therefore that will tend to reduce freight rates ought to
reduce the cost of living.
In the case of the Perth Amboy Water Department, when
the income exceeds the expenses of running the Department.
the water rates for the entire city are reduced, thereby giving
every citizen the benefit of the surplus. There is no thought
of dividing the profits among the employees of the Water De-
partment as is suggested by the railroad brotherhoods in con-
nection with the railroads. The employees of the Water De-
partment receive their salaries the same as the empoye of
every other industry and the general opinion is that they re-
ceive good salaries. Anything above that must be shared
equally with oil the citizens who are part owners of the Water
Department through the city control
Suppose that the railroads under government ownership
earned a profit of, say, ten per cent.---somethingt that is almost
inconceivable---an the given level fixed by the railroad
brotherhoods up to which point they are to receive division Of
all the profits is five per cent, the first five per cent. profits
would be divided among the railroad employees exclusively, and
the other five per cent. would be returned to the people in the
form of reduced rates. Would not the railroad employees, be-
Ing a part Of 'the people, receive their share OF latter five
per cent. in the form of reduced cost of living? Thus they
would ge the benefit of the first five per cent. exclusively for
themselves and then they get their equal share of the other five
per cent. that goes toward reducing the cost of living for every
body.
But all this is on the supposiion that there would be a
surplus under government ownership. Experience has proven
tina, this is not the case. In spite of the numerous economies
that the United States Railroad Administration has introduced
in the way of cutting off big salaries for high officials, abolish
ing expensive ticket offices in large cities and SO on, the di-
rector general of railroads tells the President that the rail-
roads are now mourning a deficit of several hundred million
dollars a year.
But aside from this the question Of politics looms up in a
menacing manner. Those who have been inclined to favor
government ownership of public utilities on general principles
have been discouraged because of the curse of politics that per-
meates everything that has to do with government.
These fears are strikingly confirmed by the attitude that
the leaders of the railroad brotherhoods have assumed in the
present situation. They now declare that they will carry the
issue into the presidential election in 1920. Here is politics
with a vengeance.
Suppose the railroads were permanently under govern
ment control, what is to hinder the brotherhoods holding up
the government whenever they please on the threat of making
the matter an issue in the next election? Thus we would have
the government run by the railroads instead Of the railroads
run by the government.
1t is to be regretted that the railroad brotherhoods have
thrown down the challenge at this time. The country Is pass