New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-03-09
Elliott Declares
Railroads Don't
W ant(1uarantee
Executives Believe Govern
ment Aid Would Inter-
fere With Their Initiative
Would Turn Lines Back
President of Northern Pa.
cific Declares COMPETE
ton Best for Companies

CHICAGO, March S.--Early return
Of the railroads to operation by the
companies which own them and the
passage of constructive legislation to
enable private operation to be success
full were advocated by Howard Elliott,
president of the Northern Pacific Rail-
way, IN an address before the CONNER
cial Club of Chicago tonight.
Mr.. Elliott presented some data of
contrasts between the situation of the
roads under private and under govern
ment operation.
The Pennsylvania SYSTEM" he said,
furnishes 1872 per cent of the total
ton mileage and 14h per cent of the
total passenger mileage of the steam
roads of this country. On December
81, 1917. that system had $500 en-
ployes. and on December 81, 1918, it
had 273,101 employees. Although the
ton mileage handled in 1913 was less
than in 1917 (the railways being in the
year 1917 under private control) nearly
10000 more employees were Required
to handle the smaller volume of bust
ness.
Question of Human Nature
Il cannot believe that human nature
and the art of government have devel-
oped sufficiently to make government
ownership and operation successful to-
day.
Regulated competition, especially
70 chou1J ~ ~
tween the great systems. Without
reasonable competition development
and the introduction of the most i'm
proved and advanced methods for CIV
ing service to the public will be
checked.
What is called the labor question
is. of course, one of the most serious
and difficult confronting the whole
world, the railroads in particular, and
there must be broad view Of it and q
spirit of give and take by all classes Of
people. All good citizens desire to see
wages and living conditions improve,
but there is limit to what commerce
and industry can pay and survive. 1t
is surely better to have reasonable
wages and continuous employment than
TO force wages so high that industry
languishes, for then the wage earners
themselves will suffer most of all.
Guarantee Not Wanted
"Some have suggested that the gov
eminent guarantee a fixed return upon
railroad property. The railway execu-
tives believe that a guarantee would
tend to reduce initiative and retard
efficient management, and they do not
ask for it. They believe with adequate
rates, reasonable liberty to act and
good management roads that have been
wisely planned, honestly financed and
we'll managed can sustain themselves.
Poorly located or unwisely promoted
or badly financed roads may have to re-
organize or merge with other roads.
Zone administrative step that might
be taken in the not distant future which
would pave the way to a return to
private ownership and operation is
this suggestion. and l believe it would
help the situation:
Let the President continue the
central organization in Washington
under a director general, VITO, with
his staff, will supervise the whole sit
uation, direct policies, and make
those adjustments with the railroads
that will be required after govern
mental control ceases. This central
organization should direct the opera
ton of the railroads through the
companies themselves, rather than
through a system of regional direc-
tors.
ain other words. say to the boards
of directors and executive officers of
each company that from and after a
given date they are to take charge
of their properties and manage, main
tain and operate them for the ac-
count OF the United States and as may
be ordered by the President through
the central organization"