Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-08-06
lBy MORNING Jonrnal speclaI Leased wlrel

would not be made in the amount ana
az the time needed to insure adequatS
development OF the railroads, Political
considerations might also control the
amount of appropriations and the OBJ
jects for which they were made.
Heavy Burden to Carry.
"2 To acquire the railroads the
government would have to pledge It's
credit for eighteen to twenty billions
of dollars at q time when other large
financering must be done. 1t would
be difficult for the government to
dispose of the securities required to
purchase the railroads, and it would
be necessary for the government to
secure from five hundred million to
one billion dollars OF new capital
each year. If the government were
to assume the burden of financing
the railroads at the present time
when the war debt is so large, its
interest rate would necessarily be as
high as If not higher than the rate
at which corporations could secure
capital.
49, Government operation is sell
dom, IL ever. as efficient as corpor-
ate management. Competition, the
incentive of efficiency and progress
in private enterprises, Is absent from
the government administration of af-
fairs. Individual initiative is less.
bureaucratic methods are more char
acteristic, and the services rendered
are less progressively efficient.
Political Influence Feared.
"a While the government would
presumably select officers and EN-
ployes by means of efficiency tests.
political influences would almost cer-
tainly be given weight in selecting
men for official positions.
''5-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 upon
the general public, rates and fares
would be higher under government
than under private operation. Under
government operation expenses rise
in relation to income and the charges
imposed by the government, II a defi-
cit is to be avoided, must be higher
than those which 1t would be neces-
sary to permit railroad corporations
to make.
"6--The political effect OF govern
ment ownership and operation OF
railroads in the United States might
be serious. There are now about 500,-
The addition to the public services OF
100000 railroad employees, the ma
jority of whom are voters. would con-
stitute a force of about 100000 gov
ernment employees interested in con-
trolling the policy of the government
as regards wages, hours and condi-
tions of service. Such a body of em-
ployes might easily exercise a controll-
ing Influence lpon state and national
politics"
Discussed in Congress,
Discussion OF the railroad question
ran through much of the days debate
in congress.
The senate commerce committee
referred to a subcommittee the ques-
tion whether an investigation should
be made of the new wage demands.
The subcommittee will report tomor-
row.
Criticism of the employees for their
demands came from Senator Smith of
Georgia, who declared there was
profiteering in wages and from Sena-
tor Thomas of Colorado who asserted
the strike threats of the employees was
only short of treason" Senator Nor
ris of Nebraska suggested that in
creased freight rates might be avoid
ed BY cutting down the guaranteed
dividends. alleging that some holders
of railroad stocks were receiving from
10 to so per cent.
A formal statement Is expected to-
from the senate Interstate
commerce committee. replying to let
ters to Chairman Cummins from
President Wilson and Mr., Hines re-
questing legislation to establish wage
board