Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-05-15

roads and renew private operation.
In this they Judge the situation cor
rectly for 1t L. perfectly clear that II
should continue In pos
session Of these vast properties for
two years more they could not be
restored to their owners. It was diff
ficult enough to do 1t on the first Of
March. It would have been impossible
IL the government had operated them
much longer.
My position was that the emer-
gency created by the war has pass
Cd, that the country was already In
debt s26, 000, ooo,o with its bonds
below par, that It was simply un-
thinkable that we should issue from
$1,000 .000. 900 to $4,000. 900, 900 more
bonds with which to buy the rail-
roads. That they should be returned
at once to their owners under such
regulations as would make private
operation possible and give complete
protection 20 the public. 1t is for you
to say whether in taking that position
and enforcing 1t I discharged my
duty as senator In your interest and
for your welfare.
Government Operation Fails.
n answering that question want
you to have In mind the results OF
government operation. The govern.
ment took possession Of the railroads
Jan. l. 1913. It returned them March
/, 1920. Twenty-six months OF
federal control. When the govern
ment pays to the railroads the rental
it has agreed to pay. makes good the
insufficient maintenance 1t haa
promised to make good and when the
railroads have repaid the government
for the sums expended by the gov.
eminent for equipment. additions
betterments and the like which they
are bound under the Iaw<to repay
the loss the government sustained II
the operation Of these properties
which must be paid from the treas.
ury of the United States. will be mol
less than S1.1oo, 900. 900. 1t viii prob
ably be 100000. 900 more. THAI
means not less than $1.500.000 eacl-
day for the whole period. And ali
this notwithstanding the fact that In
1918 and since the director general
increased rates for transportation 81
that the aggregate increase per year
upon the traffic carrier would
amount to more than $1.25o.o0o 900.
Do not misunderstood me. I ara
not condenning the director general
He found it necessary to increasl
wages billion dollars . year and
supplies advanced In like proportion.
It was impossible for him TO operat'.
the roads economically or efficiently,
He encountered the same difficulties
that the government always en-
counters in carrying on great bust
ness enterprises. As an instance. 81
one Of these troubles It may be re.
marked that in moving substantially
the same volume Of traffic he fell
compelled to employ $4,000 more
men than had been employed during
private operation.
These are some Of the appalling
facts which were before me when
came to determine what to DO ard
when you have considered them
will be altogether content TOT tai;t
your Judgment upon the course
have pursued. The third and lalst
objection mentioned in Shis cam.
paign IL the rule OF rate MAKING
which IL to continue for two year,
and which has been falsely called I
guaranty.
Problem Had 70 Be Solved.
Let us examine the problem W,
had to solve. We were returning th,
roads to their owners. Our purpos,
in returning them was. Of course, I,
furnish the farmers. the merchants
the manufacturers, indeed to III
shippers a better transportation ser
vice. We wanted to make the ser.
vice prompt efficient and adequate
Our sole object was to give tn,
people service. The people Of thu
community In which am speaking
know from btttsr experience how In
adequate the survice has been ant
what tremendous losses have bee,
inflicted upon all Of you by reason o
the shortage in transportation faciii
ties. What was the situation? Tn,
government during Its operation haa
added very little to the car ant
engine equipment. It was shown Z,
us, without contradiction that th'
roads a. q whole ought to have. II
order to meet the demands Of com.
merce. $4,000 freight cars. MIN
thousand passenger cars Of and fou,
thousand locomotives more thai
they had. This equipment at prsssu
prices would cost about $1.e0o, 00o. 600
We found. however. that II the shops
ana factories were employed at thsa
full capacity there could not b fur
nished this year moro than 10000
freight cars. 5000 passenger cars in,
5000 engines. This part Of the entir
need would cost about $500. ooo. ot,o.
Tho vital question was. how coull
the railroads set this money for nd,
ditional equipment and $3oo. VoO. oo'
more to meet maturing oblisationl
and add the tracks. warehouses. ele.
vators and other facilities absolutsi,
necessary 10 fairly serve the public.
Public 1ses %ke Lses. Z
III they failed to get It the railroad
suffered little. the public bore en-,
loss. Not only % but W knew tina,
next year and every year the road
must secure q billion dollars or NOR
II they kept pace with the growth
and develepmsnt u tie country. w
tried 10 bridge over the hrst few
months Of the transition BY appro.
priating for loans On proper 20.
curity at Per cent to railway com.
panies that might b unable h
finance Themselves t3eAeeo, 900. .rhil
Is but . beginning. The railwa,
companies must obtain the rsaAinde,
from people whs have mercy to in.
vest, people who can etthsr plao'