Arizona republican., 1919-08-06
FEDERATIONISTS
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tCOnIlnueu .lfOH [ dSt Ohet jects for which they were made.
 "2--To acquire the railroads the government would have to pledge it's credit for IS to 20 billions of dollars at a time when other large financiering must be done It 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 5O0,- 000,000 to 1000, 900 dollars of new capiptal 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, it's interest rate would necessarily be as high as, if not higher than, the rate al which corporations could secure capital.
 Federal Operation Inefficient
 "3 Government operation is seldom if ever, as efficient as corporate man. agement. Competition, the incentive of efficiency and progress in private enterprises, is absent from the govern ment administration of affairs. lndi- vidual initiative is less, bureaucratic methods are more characteristic, and the services rendered are less progress sively efficient.
 A. While the government would pre- sumaby select officers and employees by means of efficiency tests, political influences would almost certainly be given weight in selecting men for of ficial positions.
 D Unless the government adopted the policy of fixing low rates and fares to int rpGtfltinor deficit from operations should be placed as an increased burden of taxes upon the general public, rates and fares would be higher under govern ment than under private operation. 1 Under government operation, expenses rise in relation to income and the charges imposed by the government, if a deficit is to be avoided, must be | higher than those which it would be necessary to permit railroad corpora tions to make.
 Too Many Political Aspects
 "6. The political effect of government ownership and operation of railroads in the United States might be serious There are now about 500,000 civil em- ployes of the government The addi tion to the public services of 100000 railroad employees, the majority o whom are voters would constitute { force of about 2500 900 governmen employees interested in controlling tn, policy of the government as regard wages, hours and conditions of service Such a body of employes might easill exercise a controlling influence upol state and national politics"
 Discussion of the railroad question ral through much of the days debate il congress.
 The senate commerce committee re ferred to a sub committee the question whether an investigation should b made of the new wage demands. Tn sub committee will report tomorrow. Criticize Railway Workers
 Criticism of the employees for thei
 demands came from Senator Smith ( Georgia, who declared there was prof iteering in wages and from Senate Thomas of Colorado, who asserted tn
 strike threats of the employees was onl
 short of treason. Senator Norris ( Nebraska suggested that increase freight rates might be avoided by cut : tins down the guaranteed dividend
 alleging that some holders of railroa stocks were receiving from ten to lift Ter cent.
 T A formal statement is expected tC morrow from the senate interstat Q commerce commission, replying to lei ters to Chairman Cummins frol
 President Wilson and MT Hines rt : ! questing legislation to establish | wage board.