Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-12-15
WHO Is TO RUN THE RAILROADS?

Q DAVIES wARFIELD'S plan for pro-
-. viding rolling stock for the railroads is
not likely to be adopted at once. Yet it de-
serves the consideration of those who are
studying the railroad problem.
There is at present a shortage OF cars OF
various kinds and the railroads are unable
TO raise the necessary capital to buy them.
As result freight cannot move freely. Mr..
Warfield would have Congress organize a
national public corporation which should
buy cars and rent them to the roads as they
need them. The corporation would be
financed by the surplus earnings of the roads
which the Esch- Cummins railroad law di-
rects the companies to turn over to the
Interstate Commerce Commission. These
surplus earnings are estimated at 800, ,0OO,-
600 a year. Starting with this amount of
cash, Mr.. Warfeld thinks the corporation
could raise from $50, 900, 900 to 5000, ,0O0,-
900 more and have a maximum OF $500, 600
600 to invest in rolling stock in a few
months Then there would be mobile mass
of freight cars which could be sent where
they were needed. Freight would move
more freely, the earnings of the railroads
would be increased and freight rates would
slowly come down.
Those who do not believe in government
ownership Of railroads will at once ask why
IL is necessary to have such a car owning
corporation owned and financed by the gov
ernment. ii the leasing of cars to the rail
ronds could be carried on protitably by an
independent corporation, why could not such
a corporation be financed by private capital
and managed by private citizens more sue
cessfuly and more satisfactorily than by
public officers appointed either by the Prcsi-
dent or by the Interstate Commerce Com
mission?
Mr. Warfeld has hinted at two answers
to this objection to his plan. The first is
that under public control there could be no
favoritism in the distribution Of the cars TO
the roads which need them. Those who think
that laws against favortism by public
corporation would be moro effective than
the existing laws against favortism by the
privately owned roads will regard this an
Rwrr as complete.
Mr.. Warfed's second answer is that
the successful operation Of such q corpora
ton would meet the principal argument Of
advocates Of government ownership" This
argument is that the transportation system
Of the country can function properly only
under government ownership because only
IN that way cnn there BE- unified service and
distribution Of cars when they need them
to those sections Of the country which need
them. In brief. he would cut the ground
from under the feet of the advocates of com
pletc government ownership by adopting a
half way measure.
1t may be doubted whether this plan would
discourage the advocates Of government
ownership. They would be more likely to
argue that II II Is eIpedient for the gov
ernment to secure distribution of cars to
serve the country because the railroads do
not secure it when left to themselves, il
would be much more expedient for the gov
ernment to take over the railroads altogether
and provide service at all times adequate to
meet the demands Of business.
Yet It must be admitted that private
ownership is on trial. II the railroads can p
not do the work expected of them at rates
which seem equitable, the demand for a
change will become 10 loud and insistcnt
that Congress must heed it. The national
government fortunately, has power to do
what it will in the matter. The railroads
oven now are not wholly private corpora >
tons. Th" courts have decided that their
tracks arc public highways which must be
open TO oil on tn" same terms, and that the
managers Of the roads are really trustees Of
the public. bound to serve the public in o.
tprcsts.
There are innumerable objections to gov
eminent ownership Of the railroads. but IL
Il shall appear that the country Is not adr-
quately served under private ownership,
those objections will disappear one by one
until public sentiment becomes almost unapi f..
nous in favor Of complete sOciaIiZation q,
| the transportation systems, So il il nm IN
| the railroad arrangements to Justify them
! selves.
r. .