Great Falls daily tribune. [volume] (Great Falls, Mont.) 1895-1921, 1919-08-06
BUSINESS BARS
BONDED CRAB Of
NATION s ROADS
Labor s Plan of Control
Held to Involve Finan-
cial Pitfalls.
POLITICAL PER|Ls, TOO;
VOTE SO P. c. HOSTILE

Washington, Aug. 5.-Business men
of the country. as represented in the
chamber of commerce of the United
States. who favor private ownership of
the railroads, as shown in a referendum
vote by $4,000 members. tonight made
known the reasons for their opposition
The announcement of the vote of 90 per
cent of the business men against gov
ernment ownership was accompanied by
the following explanation of the reason
actuating that decision:
Under government ownership, the
development of railroad facilities would
depend upon congressional appropria-
tions which would prevent the anticipa-
ton of the transportation needs of the
country Appropriations would not be
made In the amount and at the time
needed to insure adequate development
of the railroads. Political considerations
might also control the amount of appro-
priations and the objects for which they
were made.
''2-To acquire the railroads, the
government would have to pledge its
credit for IS to 90 billions of dollars at
a time when other large financing must
be done. 1t would be difficult for the
government to dispose of the securities
required to purchase the railroads, and
it would be necessary for the government
to secure from $500. 100000 to $1,000
100000 of new capital each year. If the
government were to assume the burden
of financing the railroads at the present
time. when the war debt is so large,
its interest rate would necessarily be
as high as. il not higher than, the rate
at which corporations could produce cap
ital.
Efficiency and Politics.
'3-Governm operation is hardly
ever as efficient as corporate manage
ment. Competition, the incentive to of
fieiency and progress in private enter
prlses is absent from the government
administration of affairs Individual in
itiative is less, bureacratic methods
are more characteristic and the services
rendered are less progressively efficient.
"i-While the government would pre-
sumably select officers and employees by
means of efficiency tests. political influ-
ences would almost certainly be given
weight in selecting men for official po-
sitions
'5-Unless the government adopted
the policy of fixing low rates and fares
with the intention that any resulting de-
flclt from operations should be placed
as an increased burden of taxes upon
the general public rates and fares would
be higher under government than under
private operation. Under government op-
Grafton expenses rise more rapidly than
iitpAit- uIu Inc CudTStS luipOSPu UN Tue
government, if a deficit is to be avoid
ed, must be higher than those which it
would be necessary to permit railroad
corporations to make
Employees Might Dictate to Us.
'B-The political effect of government
ownership and operation of railroads in
the United States might be serious.
There are now about 100000 civil service
employees of the government. The addi-
ton to the public service of 100000
railroad employees would constitute a
force of about 100000 government en-
ployes interested in controlling the policy
of the government as regards wages,
hours and conditions of service. Such
a body of employees might easily exercise
a control of the influence upon state and
national policies"