Evening journal., 1919-02-01
SATURDAY, FEBRUARY I, 1919.
FANcIEs AND FACTS REGARDING GOVERNMENT
OPERATION.

OPERATION.
m HAT Mr. McAdoo the former director general Of
/ railroads. missed his guess to the outcome OF a
years operation OF the railways by the government 10
the extent OF least ssOo0oO0OO Is pointed out by the
Railway Age In an editorial In its current issue.
The former director general the Railroad Age says
continues to advance five years extension OF the
present system Of railroad operation and TO make
predictions regarding the results that would be
gained The doctrnaire proponents OF public ownership
sim advocating this policy and making glowing pre-
what would be accomplished In these cir
-1ces It is desirable 10 recall predictions
which emanaed from exactly the persons Just be-
fore Just after government operation adopted on
December and again December a. 1911 Just two weeks
before government operation adopted S. w. Brook
hart OF Iowa. protege OF Clifford Thorne. advocated
government ownership OF railways at hearing OF the
Newlands joint Congressional committee in Washington
He estimated the savings In operating expenses that would
be effected at siOOOOOOOO a year.
on January 49, 1918 and again on January 2i. three
weeks after government operation adopted the Rail-
way Age adds Director General McAdoo gave his views
TO The Senate Committee Interstate Commerce In Wash
insion. lie did not express such boundless optimism
gardns the results Of government operation Mr. Brook
hart Mr. Thorne and others had expressed lie did how
ever make the following statements:
so hope that very large economies may be prsoced
Wow or they viii be Offset by increased cost OF material
anu Increased cost Of labor do not know but perhaps
hand viii wash the other. II II does and you main
tain the present status perhaps the government would
not have to meet any deficiency against guarantees may
give. In any case hope that the deficiency win be in
considerable and hope as well that may have a sur
plus Senate Committee Hearings. page s23)
hope there will be deficiency / hope that such
economies be effected will prevent deficiencies and
even hope that surplus may result from government
operation. OF course that Is hope; do not know
tSenate Committee Hearings page siOl. We are
takins The railroads over under guaranty Of about $780,
100000 less than they earned in the last fiscal year OF the
period lon which the guaranteed compensation OF the
railways based and in addition 10 that excess pro-
ns taxes to be paid out OF that guaranteed income II
the government, with It's powers OF coordination and
of facilities. with the unduestoned econo-
mics that may be pracced under its control OF the
proposed guaranty shown by the last fiscal years
earnings. has not made fair trade upon the merits OF
the proposition for temporary OF these properties
then am frank 10 say no not know what would be
fair" tsenae Committee Hearings page si9)
The Railway Age calls attention TO the fact that Mr. Nc
Adoo made these statements knowing he was going 70
operate the railways under cotlons 1t will be seen
that he did refer to any possible advance Of rates
sther freight passenger.
Now what was the actual outcomeY That is the per-
tinent question asked by the Age There only small
Increase in the amount OF traffic handled during the year.
Nevertheless. the advance operating the eleven
months ending with November, 1918 so Offset and In
deed SO utterly overwhelmed and annhilated the
on the Glass roads si00 1864 greater than In the
s@'" months OF 1917. When the December figures are
M ane % ey viii show that the Increase in expenses on
o ass roads during the year was at Ieas. siiooOoo
nrohsn "en @ te figures for all roads are available they
Of le - soow total Increase in operating expenses
80 increases In expenses came en- 20, A.,
, s-9 eNpecisuons Mr.. McAdoo was oh,,oa ~ -, ~
advances in rates aos es0 and passenger rates These
100000 In The six months July Of about $780,
m"V" '"sy wv were N effect The increase in expense. curing
eus .te margin with which, as MIR NJ pea
eod the Senate committee. he began vnsd VI , McAdoo
10000 Increase In earnings due TO advances in sO
left the government with deficit OF $500 ooo ooo ana
years operations. Taking into acccun, tho ~ e
earnings derived from the in rates and ,h
Incurred II will be that Mr. McAdoo missed h,s ,
to the na outcome Of the year by at least $500 oo
As to the Mr. Brookhart from Iowa. when we add IN,
reduction In operating expenses which anticipated Ia
the advance In operating expenses which actually occur
ssd ind that he missed his by sooOoOoo