Evening star., 1919-11-16
El u. GOULD LINCOLN.

~ country are to be handed back
to their owners on January
1-unless the President should change
his mind. which. according to all re-
ports. IS unlikely. What will be the
condition of these great properties
the arteries of commerce of the coun-
try-when they are again in posses
sion of their owners? The answer to
this question is a matter of the most
vital import to the nation. For upon
the successful operation of the steam
railroads depends in large part the
prosperity and very life of the peo-
pie.
Congress is struggling with the
terms of federal Legislation designed
to enable the roads to do business to
the greatest advantage to the public.
and to themselves. The House is
about to pass railroad bill. and
another has been reported to the SEN
tie by the Senate interstate commerce
committee But whatever form this
legislation may take. there are GER
tain facts ascertainable today about
the condition Of the roads that are of
great interest in the discussion of the
railroads again under private owner
ship and operation.
The railroads were taken over by
the President at midnight the last
day of the year 1917. under authority
contained in an act of Congress ap-
proved June 80. 1917. a wartime
measure. AT that time the roads were
in great difficulties. 1t did not seem
possible for them to meet the tre-
mendous strain put upon them by the
war conditions. With costs constant
ly mounting and their rates remain
Ing the same, the roads were having
difficulty financing their needs. Then
the government stepped in 1t lifted
the responsibility from the roads and
guaranteed to the owners a return on
their investment similar to the aver
age return during pre-war years.
Passenger Rates Increased.
Since that day passenger rates the
country over have been increased by
the government approximately 25 per
cent The average increase in freight
rates has been 25 per cent also.
Director General Hines of the rail-
road administration is authority for
the statement that wages of railroad
employees on the average have been
increased so per cent by the govern
ment.
1t is estimated that the costs of all
materials and essentials going into
the operation of the railroads has in
creased more than 25 per cent
The law taking over and providing
for the return of the roads by the
government, now on the statute
books. specifies that they are to be
returned in the same condition as
when they were taken-that is, the
government promised the owners
there should be no loss to them be-
cause of deterioration.
Officials of the railroad administra-
tion assert that this promise will be
fulfilled. Some of the roads are bet
ter off today in the matter of ways
-roadbeds, tracks, etc.-than they
were when they were taken over by
the government, though they may
not be so well provided with equip
ment and rolling stock. Others have
better equipment, but their ways are
not in as good shape. But already
the railroad administration has put
some of the roads into such shape
roads which required attention in this
respect-that they may be given back
to the owners in condition similar to
that in which they were taken. Others
will have to be returned with the un-
derstanding that the government will
pay sufficient sum of money to them
to Offset any deterioration. Still other
roads are in such condition that they
can be turned back without any fur
ther steps being necessary to insure
their owners against loss.
New Equipment Needed.
However, it cannot be denied, and it
is not denied by some of the railroad
administration officials. that the rail-
roads of the country today are much
in need of new equipment, improve
ment in their roadbeds and extensions
of their lines, to handle the vast COM
merce of the country.
An estimate obtained through Off
cial sources is that the railroads of
the country will need to spend from
$3.50. 1000, 900 to $1,000. 900, 900 for equip
ment and extensions during the year
1920. How this huge sum is to be
raised. and whether. in fact it can
be raised, will depend in large part
upon the legislation which Congress
enacts. Unless capital is satisfied that
investment in railroad securities is
sufficiently attractive. the roads can
not hope to obtain the money from
private sources. Their only other re-
sources would be an increase in rates
sufficient to make up the amount in
addition to paying operating expenses
and the interest on their securities, or
the government itself.
When the government took over
the roads two years ago they were
sadly in need of new equipment and
extensions.
1t would be unfair to say that the
roads have been allowed to fall so
far behind during the period of gov
ernment operation-though criticism
of the government operation of the
railroads is common enough, and in
many instances justified. The roads
themselves in 1917 were in no shape
TO make the Improvements needed
They could not get the money. Since
the government took them over while
il has expended large sums on i'm
provements and equipment to keer
the roads going, lack of materials
q 70