Gilpin observer., 1919-08-07
RAIL STRIKE
IS SPREADING
BUSINESS MEN OF NATION FAVOR
PRIVATE OWNERSHIP
OF RAILS.
STRIKES THREATENING
CLERKS AND FREIGHT HAND.
LERs ISSUE DEMANDS FOR
HIGHER WAGES.
N Newspaper Union New. Service.

| Western Newspaper Union News Service
Washington, Aug. 6.-The railroad
problem is engrossing the attention Of
both the executive and legislative
branches of the government.
Meanwhile threats of hundreds of
thousands of railroad employees to go
on strike to force higher wages to
meet the high cost of living were re-
terated.
Demands also are being made by
100000 clerks, freight handlers and
station employees.
Business men of the country, as rep
resented in the Chamber of Commerce
Of the United States, favor private
ownership of the railroads.
Based on referendum of the
chambers 100000 members, this an
nOuncement was made following pub
licatiOn of the demands of organized
labor for elimination Of private capital
from railroad ownership and opera
ton
cent Of the business men against gov
ernment ownership was accompanied
by the following explanation of the
reasons actuating the decision:
81. Under government ownership
the development Of railroad facilities
would depend upon congressional ap-
preparations and would prevent the
anticipation 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 railroad. Political
considerations might also control the
of appropriations and the OBJ
jects for which they were made.
"2. To acquire the railroads the
government would have to pledge its
credit for eighteen to twenty billions
must be done. 1t would
be difficult for the government to dis
pose of the securities required TO pur-
chase the railroads, and it would be
necessary for the government to Sc
cure from five hundred million to one
billion dollars 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
be as high as, IL not higher
than, the rate at which corporations
could secure capital.
50. Government operation is sell
dom, II ever, as efficient as corporate
Competition, the incen-
tive to efficiency and progress in pri-
vate enterprises, is absent from the
government administration of affairs.
Individual initiative is less, bureau
cratic methods are more character
istic, and the services rendered are
less progressively efficient.
81. While the government would
presumably select officers and en-
ployes by means of efficiency tests,
political influences would almost cer-
tainly be given weight in selecting
men for official positions.
"5. Unless the government adopted
the policy of fixing low rates and
fares with the intention that any re-
sulting deficit from operations should
be placed as an increased burden of
taxes upon the general public, rates
and fares would be higher under gov
ernment than under private operation.
Under government operation expenses
rise in relation to income and the
charges imposed by the government,
II deficit is to be avoided, must be
higher than those which it would be
necessary to permit railroad corpora
tions to make.
"6. The political effect of govern
ment ownership and operation of rail
roads in the United States might be
serious. There are now about 5OO,OOO
civil employees of the government. The
addition to the public services of
2,OOO,OOO railroad employees, the major
ity of whom are voters, would consti-
tute force Of about 2,50O,0OO govern
ment employees interested in control
ling the policy of the government MS
regards wages, hours and condition of
service. Such body OF employees
might easily exercise controlling in
fluence upon state and national poll
toe