Arizona republican., 1919-03-09
RETURN 1T ROADS JUSTIFIED UPON POOR JON TROL
Howard Elliott Submits Figures Suggests Grad uated System Of Release Start With Central Gov ernment Operation Under Director GeneralN Na1le Return Date. ssniw #

CHICAGO, March S.--Thex parsy re- turn of the railroad-to operation by t0e N which own ttgg3. and fhc R passage of constructive legjsiation 10 enable private operation HAqbe rr,se4e were advocated by, Howa{4 Elliott, chairman and president of tlle Northern Pacific railway ins sn alddr4S9 before the Commercial club of Chica&o at a dinner here tonight. zK
 MT. Elliott presented some d8(a which brought out contrasts bstween the situation of the railways under pti- vate and under government operation
 "The Pennsylvania system" he said, furnished 12.2 per cent of the total freight mileage and 12E per cent oe the total passenger mileage of the steam roads of this country. On De- cember 31, 1917. that system had 233.- 600 employees, and on December 3L, 1913, it has 27S,101 employees.
 Although the ton mileage handled a 1918 was less than in 1917 (the rail- ways being in the year 1917 under pri- vate controD, nearly 45,000 more eIn- ployes were required to handle the smaller volume of business.
 These statements are not made in criticism of the railroad administration or of members of it, but simply to em- phasize the point that the system of government operation is not productive Of the best results. With the sams railroads a little better equipped ia 1918 than in 1917; and the same off, cers and men, but with different or ganization and direction; and with the head men working as hard as human beings could work: and with vast war powers and freedom from restrictive laws, government control had the ef- feet of reducing that tireless energy and individualism so essential to the success of any enterprise, and the total output of the railroads was less than Tn 1917, and was very much more costly to tie country.
 Oppose Regional System
 "The railway executives do not be. lieve in the so-called regional plan under which all of the railroads in a given territory are to be merged into one system. They believe that our geographical, economic and social con- ditions are so different from those ex- isting in foreign countries that we must solve our problem in our own way, and not adopt a plan because some other nation may have eXperi- mented with it.
 Small. unsuccessful and so-called weak lines that are depending upon their connections with the great trunk lines, must gradually be absorbed and become part of the larger system; just as has been done in the past.
 Regulated competition. especially as to service, should be continued between the great systems.
 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 a broad view of it and spirit of give and take by all classes of people. All good citizens desire to see wages and living conditions iIn- prove, but there is q limit to what com- merce and industry can pay and sur- Nive. It is surely better to have req sonable wages and continuous en- ] ployment rather than to force wages so nigh that industry languishes, for then the wage earners themselves will suf- fer most of all.
 An effective transportation machine IS vital 10 the interests of the nation in war and peace. Its importance iusti- lies having man in the cabinet 10 confer on an equality with other cab met officers dealing with great nation 1 al questions and resources, and to nre sent the transportation needs of the 1 nation directly to the president and his advisors. He will not manage and op- | crate the railroads any more than the | secretary of agriculture manages and operates the farms of the country.
 No Fixed Return
 i some have suggested that the gov- ernment guarantee fixed return upon failroad property. The railway exec : uilVes believe that a guarantee would leno 10 reduce initiative and retard ef- 1 iclent management, and they do not ask for it. They believe with adeouata rates, reasonable liberty to act and good management roads that have
 been wisely planned, honestly financed and well managed can sustain them
 selves. Poorly located or unwisely pro-
 noted or badly financed roads may
 have to reorganize or merge with other roads.
 Some of the great labor organiza
 tons have suggested that the govern
 ment purchase all the stocks of tho
 companies and own the roads subject
 to the bonds-all the roads to be then
 managed as a national system, by a
 board to consist of an equal number ot
 directors appointed by the president, by
 the officers of the roads and by the
 employees. This would eliminatecompe-
 luton and put vast power in this pro.
 posed board
 While I am an optomist in the flu.
 ture of the United States, nevertheless
 do not minimize the seriousness O
 the situation confronting the railroad;
 and the country, growing out of condi , tions produced by the war. During th, reconstruction period, it is very essen tial that the present rail structure 5 should stand, and until the new law herein suggested are effective that th r just compensation provided by tn present control law be continued. Otherwise there is grave danger O
 a financial collapse of some roads-an
 an inability of others to pay dividends
 which will affect the bonds now held b,
 savings banks The recent statement b
 Mir. Hines, in which he said the presi dent had no intention of returning tn roads to the owners hastily, and befor e a reasonable opportunity had beel e given for the congress to legislate. i = reassuring: although it is what man, e believe the president in the exercise o S good judgment would do when he as t sessed the whole situation
 Suggests Graduated Release d "One administrative step that migll y be taken in the not distant future an, f would pave the way to a return to pri c vate ownership and operation is thi e suggestion, and I believe it would hel If the situstion: Let the president con e tinue the central organization in Wash n ington, under a director general, whC n with his staff will supervise the. Whol (censinusd on rsEs rxo