The Topeka state journal., 1919-12-30
RETURN OF THE RAILROADS.


| Labor leaders are gathering in
Washington for the purpose of fight
ing the anti-strike clause of the Cum
minis railroad bill. This feature is alb
sent from the railroad bill passed by
the house and the house conferees are
expected to put up strong opposition
to it's incorporation in the draft of the
measure which finally will be agreed
upon. Members Of the house Will
come up for reelection in a few
months and they can hardly be ex-
pected to sanction any legislation
carrying a possibility of alternating the
support of a considerable number of
voters.
Under the provisions of the Esch
bill passed by the house the govern
ment guarantees the revenues of the
carriers for a period of six months
after private ownership and operations
are restored. This guarantee was
fought bitterly by the sbrotherhoods.
There is an avoidance of punitive
methods, both in relations to the own
ers and - the employees in the Esch
bill. While there is a general feeling
in the country that strikers are at
times criminal conspiracies and should
be penalized. the Republican leaders
argued that drastic laws should not be
passed, in that relation, at least until
there is further provocation from the
railroad brotherhood.
Neither does the Esch bill attempt
to limit unduly the profits thaN may
accrue to the roads that are efficiently
and economically operated. There is
a general feeling that, until the roads
are rehabilitated at any rate, there is
scant prospect for profits. But this
does not mean that the sky is to be the
only limit. The interstate commerce
commission is empowered to fix rates
and to control all capital issues of the
roads. The capital issue restriction is
intended as a safeguard against wa
tered stocks in future railway combi
nations. The interstate commerce
commission is also empowered to su-
pervise intrastate rates made by the
various state RAILROAD commissions.
There were numerous instances in the
pre-war era when radical state COM
missions lowered rates within certain
states to a degree that imposed an un-
due burden on interstate commerce.
Taken as a whole. the Esch bill
seems to be an attempt to return the
railroads to their owners under con-
ditions that will permit an expansion
Of existing lines sufficient to care for
the growing needs of the nation. Any
policy that restricts railway expansion
is cartain to work a great injury in the
long run on the country as a whole.
That the railroads will be efficient
carriers cnly if operated at a profit is
certain. business that is operated
at a loss is always a bad business for
all concerned.
During the final discussion of the
bill there was a general casting-up of
the profit-and-loss account of the gov
ernment experiment in railway oper-
alton. From a financial point of view
it proved a disas astrous failure, There
has already been appropriated ST.
$50. 100000 of tax money to the ac-
count of the railways, and the railroad
administration reported that ito dis
charge it's obligations as they may ex-
ist on December 81, 1919, on the ba-
sis of the standard contract the rail-
road administration will need an ad-
ditional appropriation of $S26,541,-
sea-"
That net loss of $500. .OOO,o 900, de-
spite an increase in tariffs averaging
so per cent, represents the difference
between the use of railway brains and
political brains in the operation of the
railroads. AS an object lesson on the
folly of political operation of a great
industry it is probably worth all that
it has cost. The actual loss to the tax
payers will be even greater than this
sum; for the president stated when he
issued the order taking over the rail-
roads that "the properties will be
/ maintained during the period of fed
eral control in as good repair and as
complete equipment as when taken
over by the government" He stated
further in his address to congress that
''It is also an obligation of public con-
science and public honor that the pri-
vate interests we disturb should be
! kept from unjust injury"
1 To fulfill that obligation it will be
necessary for the government to spend
a few hundred millions in putting the
tracks in as good condition as when
they were taken over. The important
thing is that the roads are going back
to their private owners. that the poll
| ticians and the public ownership fad
dists have had their fling and that
tf.c public must now pay.