The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1919-05-16
RAILROADS OCCUPY
CENTER OF ATTRACTION
PROFILE m SERIOUS IN
EYES OF CONGRESS.
Discovery of an Increasing
Deficit Causes Much
Speculation.
(By John D. ErwinD

Washington, May 16.--The discov-
cry that the railroads are pillng UP
a deficit at the rate of nearly $1,000.
600 a day has rendered acute the
question OF What shall congress do
with the railroads. Leaders in .ne
senate and house who have reached
Washington concede that this prob
lem must have the right OF way IN
any legislative program that is
framed. When congress adjourned
one of the bills that was left unacted
upon was the measure appropriating
$Tb0,00O,000 as a revolving fund to
take care Of the carriers obligations.
The deficit is mounting so rapidly
that even this huge sum may be ing
sufficient TO take care OF current
needs, and requirements on the near
future for necessary betterments, ex-
tensions. etc.
The announcement OF the railroad
administration that the earnings for
March show a net loss of $59,g5-. 900
in face of the fact that gross receipts
are running about so per cent. higher
than for the three years preceding the
war, which was the best period up to
that time, has caused a mild sensa-
tion. This brings the total deficit
for the first three months of the year
of the fact that freight rates are %
per cent. higher than a year ago.
These figures present a ricn rund
of debating material and the why's
and wherefores of the situation are
going to be discussed at iengtn IN
congress during the coming months.
1t Is not a partisan question, though
there may be an effort TO rurr 70
partisan account any SHORTCOMINGS
that are developed. Whether or moi
there has been deliberate campaign
on the part of the railroads to create
a public sentiment hostile 10 permn
nent government ownership, there
can be little doubt that this mas pee1
the effect of government operation.
Reports brought to Washington from
many sections by returning members
of congress indicate unmistakably
that the. tide of public OPINION IS
running strongly against rurther gov
ernmental operation of the carriers,
and the belief in well informed clrcics
is that the roads will be turned back
to their owners not later than De-
cember 81, and possibl yearlier.
The situation is such, however, that
prior to relinquishing the roads con-
gress is likely to go quite extensively
into the causes of the huge de-cit
that is growing daily. There IS no
decline in traffic. but a steady In
crease in expenses, and the reasons
assigned for the anomalous condir
tions are varied. A high official OF
the Nashville, Chattanooga & st.
Louis railroad, which developed de-
ficiency in March for the first time in
its recent history, gives as his expsa-
nation that the employees are doing
less work per hour under government
supervision and are getting more for
it. Discipline is lax, owing TO the
feeling of the men that any differ
ences with their immediate superiofs
may be carried over their heads 70
Washington, according to tais vet
eran railroad official.
An allegation coming from other
quarters is that the situation is in
terwoven with a campaign which the
railroads have launched for higher
rates. Rumors have been coming 70
Washington for some ,ime of certain
lailroads practically encouraging IN
creases in expenses by relaxing al
supervision of expenditures. Waste
some lines are suspected. On one
railroad of the middle west an al
legged padded payroll system inyolv-
ing a loss to the government running
into six figures on one division clone
is now under investigation. On an
other line an inquiry is being made
into a charge that an official has
opened up woodward adjoining gov
ernment property ana is saving up
good timbers and selling ana deiiv-
ering the material as stovewood by
government trucks to private homes.
Collusion between railroads employees
and persons selling supplies to the
government is charged in other in
stances. The department or Justice
has agents investigating several of
these cases and inspectors of the
railroad administration are also BUSY.
Another practice where the govern
ment is said to be losing money Is in
the discontinuance or weighing
freight cars. The rule now appears
to be general to merely estimate
weights and the usual estimate is the
minimum weight of $4,000 pounds TO
a car, while they average closer TO
$4,000 pounds.
Whether these reports have a solid
basis OF whether they are exagger-
ated there Is going to be a strong
fight against further rate increases on
the ground that they would mean an
other sharp rise in the cost OF living.
With the coming Of peace the inter-
state commerce commission win
again begin 10 function and The rate
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