The Elk Mountain pilot., 1920-12-09
CONTINUED from page two)

i Charles S. Mellen, former president
of the New Haven road, stated wher
the railway executives were pleading
for higher rates that they were agi-
tating the very worst possible thing
for the railroads. He pointed out
what all economists already know
that when rates are based not upon
the value of the service rendered. but
upon the imperative needs of rail
roads that are suffering from waste
and mismanagement, neither the rail
roads nor the public can be benefited
All of which harlss back to the pre-
diction made by the advocates of gov
ernment ownership of railroads that
the transportation industry is suffer
ing from malady that will not re-
spond TO the accepted legislative nos
trums. Their ills are deep-seated,
fundamental. They can not be cured
so long as the source of infection re-
mains untouched Rates cannot be
placed high enough to cover the reck-
less waste, graft and mismanagement
that have brought the New Haven
and other roads to the very edge Of
bankruptcy In the past railroad ex-
ploiters have taken in graft and man.
ipulation what might have been legit-
innate profits extended over a period
of many years. They find now that
they cannot eat their cake and have
it. The law of compensation, ever
working, is doing for them what it
will do to every corporation that dis
regards sound economics and honest
financing.
When the fact percolates the heads
of obtuse legislators that the top
pling industrial system cannot be
bratticed by higher and still higher
traffic charges. anti-labor legislation
and government subsidy. they will do
what should have been done months
ago. They will retire the incompe-
tents and put the railroads upon a
basis of public service, as they must
be before there can be any degree of
stability in their affairs.
Poisoning Industrial Body
Intelligent business men are slowly
coming to the point of view that the
railroads are menace to all industry
and will poison commerce until heroic
remedies are applied to their ills.
They are asking themselves whether
their ill-considered attitude of hos
tility to naturalization of the trans
portation industry is not reacting
disadvantageously upon them and
costing them great loss of money
and considerable concern for the
future.
Failure of the railroads to trans
port freight has been hard blow to
American business No one has yet
estimated just what share of respon-
sibility for the existing panic can be
traced back to railroad inefficiency.
1t is indisputed, however, that the
money loss has been heavy, which is
in addition to the decentralization of
production agencies.
On top of this is the increased
freight rates, which interferes with
the free movement of commerce.
Some industries have been wiped out
entirely or have been compelled to
undertake an expensive reorganiza-
tion to meet the new conditions.
transportation charges are reflected
directly in the cost of commodities,
been compelled to cut their prices
there has been no corresponding re-
lief for consumers. The depression
through which the nation is now
fioundering, entailing widespread loss
to business interests and loss of en-
ployment for millions of workers, was
produced by the refusal or the inabil-
ity of the public to buy. If the rail-
roads today are more nearly meeting
their responsibility it is because they
have developed situation where
there is less traffic to handle. Con-
gestion has been replaced with stag
nation.
1t may reasonably be expected that
full realization of the constant men,
ace of inefficient transportation will
compel many staunch opponents of
government ownership to revise their
views. An intelligent II selfish inter-
est will point the solution of the
problem, and when rhis state of mind
is developed vt may be expected that
advocates of individual initiative and
opportunity will toss the railroads
overheard. that the shir of industry
may right itself and maintain an
even keel. Either that or all industry
will go down together. That is an
extreme and very unlikely nossihilitv