Arizona republican., 1919-07-30
WEDNESDAY MORNING, JULY 30. 1919
Let us have faith that right makes might, and in that faith let us dare to do our duty as we understand it.
 -Lincoln.
A Solution of the Railroad Problem

The recommendations of the United States Chamber of Commerce in relation to the railroads refer to flair valuation" and to fair valuation "as fixed by public authority a basis for rates. Therein believe lies the solution of the railroad difficulty and only by the adoption of fair valua ton the elimination of watered stock sonable rates be restored. Without the adop- ton of such system of valuation the rates must in- above those that have been fixed by the United States Railroad Administration.
 While doubt, the roads under private manage ment could be much more economically than the government has them the greater economy of private could not wholly reduce a deficit of a billion a half dollars which the government has found it necessary create in spite of the unpre cedentedly high freight and passenger Private owners could not save billion dollars year by any possible economy of management, that they would have further the rates to make returns the stockholders, such as the government has all lowed.
 The governments allowance is based on a huge over valuation It has taken of the holders of watered stock and the railway employees the pense of the public those who paid for the service railroads and those who have paid in ternal revenue taxes. Thus every man, and child in the country from the who pays the heaviest income tax to the child who has bought ice cream a movie ticket has paid tribute to the holders of watered railroad stock and has paid for governments political liberality toward the employees of the railroads
 If the water were squeezed of the stocks and returns were paid only the actual valuation of the roads. the government, despite it's extravaganza and laundering incompetency might have evaded deficit, certainly so large a deficit
 How the watered stocks are be eliminated is another matter. but believe it be done. It was done in the of the Cleveland Street Rail ways to which made reference recently, and doubt it be done by doing it, in the simple manner that John Sherman, when secretary of the treasury department solved the question of resum- ing specie payments by the direct process of ing, thus accomplishing something that had been puzzling and seemingly impossible.
 Something. at any rate. will have to be done. The railroad situation has become great burden the country. Among the proposals hardly say for relief for they have not promised relief has been continuation of the governments deficit -ping up policy either under government management ownership. the making up by the government to the railroads time of such deficits they might create under private management Either plan would be only an encouragement to extravaganza and in- 
 The people would still bear the burden of orbtant rates taxation, of taxation alone The money would have to be produced in way. Of these evils should probably choose the latter as the least negotiable for former the rates would fall upon all alike, like tax the necessities of life The consumer would uti- mately pay for the service regardless of his ability 10 pay. Whereas under a system of taxation to deficit by which the revenue would be de- rived from inheritances and profits the taxes for the support of the railroadssk for the support of government. would be paid by those better able to bear them
 But neither of these ways would be a business way The roads should be made self supporting and should be made by economy of management to pay a proper return. But there be economy of management when returns paid valua- tion.