The Republican journal., 1919-01-02
THE RAILROADS

When Mr.. McAdoo resigned as director
general of railroads many people suspect
ed that he realized he had so snarled the
transportation business that he could not
untangle it, The President admitted in
his message that he did not know what
to advise about the management of the
roads, and this somewhat confirmed the
above suspicion. When Mr.. Wilson ad-
advise, people may well conclude that
the railroad situation is indeed bad.
About two weeks ago MIR. McAdoo wrote
letter to the Senate and House inter-
state commerce committees IN which he
urged that government control OF rail-
roads should be extended for five years.
tension would eliminate the unsettled
conditions under which the railroads
must operate during the next year or
two" This statement IS confession of
failure, camouflaged to look like prac-
teal suggestion. In the meantime, rail-
road executives representing 1875 roads
whole country, have formally declared
that Mr.. McAdoo's suggestion of govern
ment control for five years would lead to
delay and confusion. These men did not
acquire their knowledge of transportation
by gazing out of the window of parlor
car. Many of them have spent years in
the study of railroad problems and have
had years of experience in railroad man
agement. 1t would be reasonable to con-
clude that these are the men to ''elimi-
nate the unsettled conditions" and the
sooner they are put in control the sooner
the elimination will be accomplished
In eight months government control has
shown itself to be a spendthrift in it's
railroad management. In a statement
made on the first day of December Mr..
McAdo0 said that $500, eco, 900 had been
advanced to the railroads and transporta-
ton companies. He suggested to the in
terstate commerce commission that a
comprehensive program of Improvements
in railroad properties be carried forward
which, when the five years control is end
ed, would amount to 81, 5000 900 This
scheme will find little favor among the
taxpayers because they know that either
directly or indirectly every penny of this
enormous sum of money will come out of
their pockets, and in addition they will
have to endure high and higher rates for
travel and for fre, ght, and to submit to
inefficient and insufficient service. More
than half the 100000, 900 already ad-
vanced to the reads was handed over to
nine of our railway systems. Most of the
branches and many of the small systems
have had no assistance from the govern
ment, no improvement has been made to
their trackage ard their rolling stock is
one year nearer the scrap heap The
government Acknowledges loss of about
SAC, 00U, 900 month in its administration
of the railroads. We have often been
told that the railroads were in a most
uepsoE dDle COnQlCiOn Wnen magndte NC
Adoo came to the surface as manager.
The figures show that during the five
years prior to our declaration of war, the
gross earnings of our railroads averaged
nearly So, 600, 600, 900 annually; the net
earnings were more than 81, 900, 600, 600
annually; the interest on bonds was about
$3.50, 600, 900 annually, and the dividends
paid annually was about S315, 900, 600.
Taking the interest and dividends from
the net earnings, there was left about
$500, 000, 900 annually for betterments.
taxes, etc. The figures show that if the
government is going into the railroad
business it should begin as brakeman
and work up. 1t has certainly shown it's
untitness as autocrat of the Transporter
ton business of the United States. Be-
sides the extravaganza and the ineffc-
iency, the high rates and poor service,
there is the glazing inconsistency of
preaching democracy and practicing nat
ionalization of public utilities