The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-06
BUSINESS HITS
u. S. OWNERSHIP
Nations Merchants and Manu-
facturers Oppose Keeping
Railroads.
90 PER CENT. AGAINST 1T
Inefficiency and Politics Are
Objections, L. S. Chamber Of
Commerce Poll Shows.
90 PER CENT. AGAINST 1T
special pespatch TO TEE sux.

WARRINGTON. Aug. 5.-Out of 1.120
commercial and trade organizations
making up the membership OF the
Chamber OF Commerce of the United
States 90 per cent. are opposed to Gov
ernment ownership of the roads. An
nouncement to this effect was made
tonight as a result OF the tabulations
Of the nationwide poll the chamber
recently completed on this question.
From the poll the following reasons
appear for opposing Government own
ership:
Under Government ownership the de-
velopment of railroad facilities would
depend on Congressional appropriations.
which would prevent the anticipation OF
the transportation needs OF the country.
Appropriations would not be made in
the amount and at the time needed to
insure adequate development OF the rail-
roads. Political considerations might
also control the amount of appropria-
tions and the objects for which they
were made
To acquire the railroads the Govern
ment would have to pledge its credit for
$4,000, 100000 to $4,000, 100000 at a
time when other large financlering must
be done. 1t would be difficult for the
Government to dispose of the securities
required to purchase the roads and It
would be necessary for the Government
to secure from $500. 200, 900 to 31.0Oc,-
100000 of new capital each year. If
the Government were to assume the
burden OF financing the railroads at
present its interest rate would neces-
sarily be as high as II not higher than
the rate at which corporations could
secure capital.
Government operation is seldom II
ever as efficient as corporate manage
ment. Competition. the incentive to ef-
ficiency and progress in private enter
prises. is absent from the Government
administration OF affairs. Individual in
itiative is less. bureaucratic methods are
more characteristic and the services rem
dered are less progressively efficient.
While the Government presumably
would select officers and employees by
means of efficiency tests. political in
nuences would almost certainly be given
weight in selecting men for official POSI-
tiona.
Unless the Government adopted the
policy OF fixing low rates and fares with
the intention that any resulting deficit
from operations should be placed as an
increased burden OF taxes upon the gem
eral public. rates and fares would be
higher under Government than under prl-
vate operation. Under Government op-
Grafton expenses rise In relation to in
come, and the charges imposed by the
Government, II a deficlt is to be avoided,
must be higher than those which It
would be necessary to permit railroad
corporations to make.
The political effect OF Government
ownership and operation OF railroads in
the United States might be serious.
There are now about 100000 civil en-
ployees of the Government. The addition
to the public services of 100000 rail-
road employees. the majority OF whom
are voters, would constitute force of
about 100000 Government employees
Interested in controlling the policy OF
the Government as regards wages. hours
and conditions OF service.
Such a body OF employees might
easily exercise controlling influence
upon State and national politics.