New-York tribune., 1919-01-08

at reasonable charges, the EMPLOYEES
OF the transportation companies will
De adequately compensated for their
work, and the shippers and receivers
VIII secure, at reasonable rates. an
adequate service. 1t would seem to
follow necessarily that the securities
OF the corporations would become sta
blllzed and that when it becomes neces-
sary to utter additional securities under
governmental supervision capital seek
ing investment would readily respond
to the call.
he experiences under Federal con-
troll have still further demonstrated, as
rad previously been shown in proceed
lngs before and reports of the ccmmis-
SION, that there is necessarily direct
relationship between the wages paid
to railroad employees and the rates
winch the carrier companies must and
may charge. The largest item of ex-
rense IN operation of railroad is that
OF wages. Manifestly,. from a social
standpoint as we'll as from the stand
point of the nature of the employment.
and because of the great Importance
to the public as we'll as to the rail
roads of loyal and devoted service on
the part cf the employees, unaffected by
excitement of wage controversies and
OF uninterrupted operation of the car
iler properties the railroad employees
should be adequately COMPENSATED
The statement of Commissioner
Wooley presented to the Committee by
Mr.. Clark declared that the period Of
federal control should be extended las
recommended by Director General Nc
Adoo"
Il am aware that our years trial Of
federal control" stated Mr.. Wooley.
"has not been an unqualified success:
but to my mind the good accomplished
far outweighs the shortcomings and is
a promise of better things for the
future.
"The proposal to return the railroads
to private control, though widely dis
cussed by railroad men, fnanciers and
shippers, has not yet, so far as I am
aware, been productive of any concrete
plan which would carry the undertake
ing safely over breakers obviously
ahead.
with the government borrowing
more than $4,000, 900 in a period
of two years." he further stated. "and
with railroad securities, largely speak
ing, depressed or in a measure dis
credited, I fail to see where the money
is coming from to insure to the United
States an efficient and articulate grow
ing transportation system, vitally
necessary 10 lne great period of recon-
struction just beginning, if the roads
are to be returned to their owners for
operation
"a real danger spot is the so-called
weak sisters That many not already
bankrupt might be thrown into the
hands of receivers almost imme diately
upon return to private control is hard
ly debatable; that most of them are
indispensable links in our national
transportation system and should be
improved and developed is generally
admitted. The government is the only
possible source of financial help for
this class of roads
"Our public utilities, with approx
mately $26O.0O0 900 of bonds maturing
in the next six months, have been un-
der heavy strain for some time. If
the financial waters should be serious
ly disturbed through the forcing of the
weak members of the present Federal
control group into bankruptcy, many
of these utilities would find it difficult
to weather the storm.
81 am firmly of the opinion that
there is urgent need of a new system
of rate making, and | see no hope of
It's being achieved except under Fed
eral control or with the government
owning the railroads. The freight rate
should be made, under proper classi-
fication, on the basis of terminal
charge plus straight mileage"