Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-01-08
WALKER D. HINES SAYS
GOVERNMENT SHOULD
CONTINUE GRIP ON ROADS
Continued From Page ~

tlons of private management. | know
on several occasions in the fail months
prior to federal control the safe of
traffic congestion in some parts Of the
country reached such a state Dis to
constitute a transportation crisis, but
these conditions We're obvia, ed
through the use of the opportunities
which came from unified control /
attribute the achievement entirely to
the opportunities which unified con-
troll gave and not to any superior wis
dom which / claim was possessed by
the railroad administration.
i want to emphasize the point that
the railroads were placed under gov
eminent control during the war and
that the predominant motive during
the war was the prompt movement
of troops and war supplies. From
January l, 1918, to November 1919,
there were 13,446,S59 soldiers, sailors
and marines moved on the railroads
in the United States, and this was
equivalent to Transporting one passen-
ger 5,917, 65S,719 miles, thus necessi-
tating the use of 213,749 railroad
coaches and Pullmans and the move
ment of over 900 special trains The
civilian Inconvenience which have
been dealt upon so consistently result
ed in very large measure from the
prmacy which had to be given to this
war object.
Reason For Deficit
THE fact that there has been a
deficit from railroad operations under
federal control has been regarded by
many as conclusive evidence of the
necessity for a precipitate return to
private control but the fact is that
the deficit has not been due to ex-
cessive costs. The costs have not been
relatively greater than in other lines
| of enterprise. The real reason for the
| deficit is due to the fact that the
| prices charged for railroad transport
tation have not been increased in
| keeping with the increases in prices
| of commodities. For the first SIX
months of federal control there was
no increase in the rates of transporta-
! ton. If the increases in rates which
were put into effect in the latter part
| of June, 1918, had been put into eff
| feet on January l. 1918, at the very
| beginning of federal control, the class
| one railroads would have shown a
profit of about $4,000 600 at the end
of October, 1919. at the expiration OF
| TWENTY-FIVE months of federal control,
| instead of deficit of nearly $500,
| 600, 900. In other words, the deficit
| can fairly be said to have been due
| to the fact that the increase in rates
was necessarily deferred six months.
The entire deficit for the period from
January, 1918, to October, 1919, both
inclusive for class one railroads and
large terminal companies in federal
operation was $3.50, 600, 600, but II the
rate increases made in June, 1918, had
been effective January !, 1918, from
which time of course the increased
expenses were largely effective, the
additional revenue without any IN
crease in operating expenses would
have been $494,000, 1000, thus more
than offsetting the deficit and leaving
profit of $14,000,000.
Increase of Rates.
"If the railroad administration had
increased it's rates fifty or sixty per
cent, which was less than the increase
in prices by private industries
throughout the country, and whlch
by the way appears to be in line with
the increases in rates now being pro-
posed for railroads in England and IN
other European countries, handsome
profits would have been shown instead
of deficit.
THE indications are that despite all
the increases in cost which have been
incurred by the railroad admlnlstfa-
| ton, a continuance of unliied controi
could be made self-supporting upon
| a very small increase in rates, where
as a return to private management
with the necessity of establishing the
credit of a great number of indepenu-
| ent railroad companies would I'M
doubtedly call for a much greater In
crease in rates, If the railroad credit
| is in fact to be successfully establish
| ed.
While on the subject of results OF
| the railroad administration, | wish tc
correct the radically erroneous inn
preston as to the treatment of labor
The increase in the rates of pay to
railroad labor have by no means beer
out of line with the increases to labor
| in private enterprises, and in both in
stances the increases have been due
| to the conditions created by the war
| 1t is a curious illustration of the
| liberation of the times that the in
crease in wages made by the railroad
administration is regarded as a proof
of politics and inefficiency, while ar
even greater increase in some of the
| important industrial enterprises of the
| country is regarded as perfectly
natural response to business necessi-
| ties.
special stress has been laid by
some of the critics of the railroad ad
| ministration upon the increase in the
number of employees. This increase /.
principally accounted for by the es-
| adjustment of the eight-hour day
and involves no increase in the num-
| Der of hours of labor paid for. OBJ
viously if 80 hours of labor are to BIZ
done ten employees will be required or
Il 4. Cd ~ asoh -