The Birmingham age-herald., 1919-03-09
NORTHERN PACIFIC
 PRESIDENT URGES EARLY RETURN OF
 ROADS TOOWNERS
Presents Data of Contrasts Between Situation of Rail- ways Under Private and Under Government
 Operation
By Associated Press


 Chicago, March S.-Early re- turn of the railroads to opera ton by the companies which own them and the passage of constructive legislation to en- able private operation to be made successful, were advoca- ted by Howard Elliott, presi- dent of the Northern Pacific railway, in an address before the Commercial club of Chicago tonight.
 MT. Elliott presented some data of contrasts between the situation of the railways under private and under gov ernment operation
 The Pennsylvania system," he said. furnishes l2.2 per cent of the total ton mileage and 1ila per cent of the total passenger mileage of the steam roads Of this country. On December sl, 19l7 that system had 233 500 employees. and on | December 3f, 1918, it had 273, ,101 employees 1 Although the ton mileage handled in | IBIS was less than in 1917 tthe railways l being in the year 1917 under private con- | troD nearly 10000 more employees were 1 required to handle the smaller volume O. business
 1 These statements are not made in crit i icism of the railroad administration or | Of members of it. but simply to em- phasize the point that the system of government operation is not productive of 1 the best results. With the same rail- a hatt | in 1917. and the same officers and men. but with different organization and 1 direction government control had the ef- feet of reducing that tireless energy ans ! individual initiative so important to tha | success of an enterprise and the totsA output of the railroads was less than in 1917 and was very much more costly to the country.
 Ia INVOLVES GREAT RISK II T cannot believe that human nature \ and the art of government have devel- l oped sufficiently to make government | ownership and operation successful to- day. do believe that embarking on the sea of government owership and opera ton involves q risk of shipwreck. The railway executives do not believe Il. Inc regional plan under which anl Iof the railroads in given territory arc to be merged into one system. They be-
 
 social conditions are so different from those existing in foreign countries we l must solve our problem in our own way and not adopt plan because some other nation may have experimented with it.
 Small, unsuccessful and weak lines dependent upon their connections with the great trunk lines, must gradually l be absorbed and become part of the | larger systems.
 Regulated competition. especially as to service, should be continued between the great systems.
 LABOR QUESTION GREATEST
 What is called the labor question is, of course, one of the most serious and difficult confronting the whole world. the railroads in particular, and there must be a broad view of it and spirit of give and take by all classes of peo- pie. All good citizens desire to see wages and living conditions improve but thern is limit to what commerce and indus try can pay and survive. It is surely better to have reasonable wages and con- tinuous employment rather than to force wages so high that industry languishes. for then the wage earners themselves | will suffer most of all.
 Some have suggested that the govern ment guarantee fixed return upon rail- road property. The railway executives believe a guarantee would tend to re- duce initiative and retard efficient man. agement and they do not ask for it. They believe with adequate rates, rea- sonable liberty to act. and good manage | ment, roads that have been wisely planned. honestly financed and well managed, can sustain themselves.
 "One administration step that might be taken in the not distant future and would pave the way to return to private ownership and operation is this sugges- .l tion, and I believe it would help the sit- uation:
 Let the President continue the central organization in Washington under a director general. who, with his staff. will supervise the whole situation, direct policies and make those adjustments with the railroads that will be required after governmental control ceases This central organization should direct the operation of the roads through compan. ies themselves, rather than through a system of regional directors. In other words. say to the board of directors and executive officers of each company that from and after a given date they are to take charge of their properties and man. age, maintain and operate them for the account of the United States and as may be ordered by the President through the central organization"
 |52 Senators Would