The state herald., 1919-08-15
STRIKES THREATENING
BUSINESS MEN OF NATION FAVOR
PRIVATE OWNERSHIP OF RAILS.
CLERKS AND FREIGHT HAND.
LERs ISSUE DEMANDS FOR
HIGHER WAGES.
w..,.r. s.-p.p.r Union New, Service.

western SswDapsr 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-
iterated.
Demands also are being made BY
$4,000 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 G70000 members, this an.
nuunccment was made following pub
llcation OF the demands OF organized
labor for elimination OF private capital
from railroad ownership and opera
lion.
Announcement OF the vote of 90 per
cent of the business men against gov
ernment ownership was accompanied
by the following explanation of the
reasons actuating the decision:
II. 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
ut the time needed to insure adequate
development Of the railroad. Political
considerations might also control the
amount OF appropriations and the OBJ
Iccts for which they were made.
y. To acquire the railroads the
government would have To pledge Its
credit for eighteen to twenty billions
of dollars nj time when other large
fInnnceering must be done. 1t would
he difficult for the government TO dis
pose OF the securities required TO pur
chase the railroads. and II would be
necessary for the government to Sc
cure from five hundred million to ont
billion dollars OF new capital eacl
year.
III the government were to nssum,
the burden OF Financing the railroad,
ut the present time when the war deb
IL so large. Its interest rate woult
necessarily be AZ high as. II not highel
than. the rnte at which corporation
could secure capital.
"3. Government operation In sci
dom. II ever. as efficient us corporate
management. Competition. the inccn
tive to efficiency and progress In pri
,nte enterprises, Is absent from th'
government administration OF affairs
individual initiative Is less, bureau
cratic methods are more character
istic, md the services rendered nr'
less progressively efficient.
~. while tho government woui,
presumably select officers and en-
ployts by mems OF efficiency tests
political influences would almost Ger
tainly be given weight In selecting
men for official positions.
~ Unless tho government ndoptcs
tho policy OF fixing low rates nm,
fnres with the Intention that any re
sultlng deficit from operations shoul,
be placed Us nm increased burden o
inres upon tho general public. rate
and fares would DO higher under gov
.rnment than under private operation
Under government operation expenses
rise In relation to income and IN,
charges imposed by the government
n a deficit In TO bc avoided. must b,
higher than those which II would b.
necessary to permit railroad corpora
tions TO make.
"a. The political offect Of govern
ment ownership and operation Of rail
ronds In the United States might b.
serious. There nrc now nbout 10000
civil employees OF the government. TIL
addition 10 the public services o
2,000.0O0 rnIlroad employees, the major
ity OF whom nrc voters, would constl
tute force of about 100000 govern
mont employees Interested In control
ling tho policy OF tho government u
regards wascs, hours and condition o
service. Such n body OF cmploye
might cnsjly exercise n controlling In
nueDcc