The Birmingham age-herald., 1919-08-06
OPERATION NOT EFFICIENT


 8. Government operation is seldom. If ever, as efficient as corporate man agement. Competition, the incentive to efficiency and progress in private enter prises, is absent from the government administration of affairs. Individual in itiative is less, bureaucratic methods are
 more characteristic, and the services rendered are less progressively efficient A. While the government would pre- sumably select officers and employees by means of efficiency tests, political in fluences would almost certainly be given weight in selecting men for official post tions.
 "5 Unless the government adopted the policy of fixing low rates and fares witE the intention that any resulting deficis from operations should be placed as ar increased burden of taxes upon the gen eral public, rates and fares would be higher under government than under private operation. Under government op- eration expenses rise in relation to in come and the charges imposed by the government if a deficit is to be avoided must be higher than those which 1t would be necessary to permit railroad corporations to make.
 "e The political effect of government ownership and operation of railroads in the United States might be serious. There are now about 500O00 civil employees of the government. The addition to the pub- lie service of 100000 railroad employees, the majority of whom are voters. would constitute a force of about 2,5o0,OOO gov ernment employees interested in control ing the policy of the government as re- gards wages, hours and conditions of service. Such body of employees might easily exercise controlling influence upon state and national politics
 HINES IS ATTACKED
 Discussion of the rai1noad question ran through much of the days debate ill Congress. The Senate commerce commit tee referred to a ub-committee the ques- ton whether an investigation should De made of the new wage demands. This sub committee twill report tomorrow. Di- rector General Hines was the object or attacks by Senators Kellogg and Pom creme, who argued that he should make the decision as to increases in wages. Senators Pomerene and Cummins assert ed the President and MT. Hines had ample authority to settle the present crisis With out reference to Congress.
 Criticism of the employees for their demands came from Senator Smith or Georgia, who declared there was proii'- eering in wages, and from Senator Thom- as of Colorado who asserted the strike threats of the employees was only short of treason" Senator Norris of Nebraska suggested that increased freight rates might be avoided by cutting down the guaranteed dividends, alleging that some holders of railroad stocks were receiving from 10 to 50 per cent.
 A formal statement is expected to- morrow from the senate interstate commerce committee, replying to let ters to Chairman Cummins rom freSl- dent Wilson and MT. Hines requesting lerislation to establish wage board The statement. it is understood, Will advise the President that in the conl- nittee's opinion such legislation Is un- necessary and that the committee oe- lieves he and the director general have all powers necessary to fix wages ana also rates during government opera tion of railroads.
 Another special meeting or the com mittee was called today for tomorrow afternoon to consider the Presidents request and to receive report from the subcommittee.