The Washington herald., 1920-07-13
Men and Business
BY RICHARD SPILLANE.

cation to this column saying he has
received q circular letter from
national house which reads as fol-
lows:
GIVE THE RAILROADS A
SQUARE DEAL
During the last few years, and
particularly during the last few
months, We have seen the effect Of
breakdown in our TRANSPORTATION
system. The results of such a
breakdown reach every citizen and
! not only cause untold hardships
and loss OF money, but also mate
rally affect the high cost Of living.
The railroads have now been re-
turned to their owners after over
two >years of government control.
They were returned in practically
worthless condition. with a short
age of equipment, and that which
they had In very bad condition,
their treasures empty asd the gov
ernment Withholding money due
them. and with their roadbeds run
down and their records terribly
confused. For a long time they
must necessarily be short of facili-
ties and will require the co-opera-
tion of the public while sthey build
up their systems in order to catch
up with the country's progress.
The building up of the railroads
7 is vital to you and TO this coun-
pany. There can be no safe founda-
tion for prosperity until the rail-
roads are put upon a paying basis
asd in a position to give service to
all. American sense OF fair play
demands that they be given this
opportunity. and this company for
one is willing to urge cooperation
with the railroads on the part OF
Congress and on the part of every
individual to help them build up
the service TO meet the nations re-
quirements."
The gentleman says he does not
believe the statements made in the
circular are true and he asks an
opinion regarding the situation.
There is much in the circular that
! is incorrect either as to fact or in
suggestion. The railroads were not
| in good condition when taken over
! by the government. A considerable
number Of properties, big and little,
were bankrupt. Governmental op-
Grafton was necessary in order to
route trafic to get the best results.
/ Also II was necessary to consolidate
terminals IL order to handle freight
! and passenger trains to the best adj
vantage.
! Repairs and replacements were
skimped in the war period. This was
done deliberately. because every
ounce OF steol the government could
put into engines of war was utilized
! for guns, for ships and other mate
rial agents in the war structure. It
was a war OF steel. Our railroads
( helped greatly in winning the war.
Operations of the railroads in the
time of governmental control was
| in the hands OF railroad men. Prac
tically all the regional directors
were former railroad presidents and
are back on their old jobs. Surely
they would not contribute TO the
destruction OF their own properties
OF the two men who served as di-
rector general OF the Railroad Ad-
ministration, Mr.. McAdoo had been
! head OF the Hudson and Manhattan
Company OF New York. and Mr.
Hines had been chairman of the
board of the Atchison,, Topeka and
Santa Fe.
There is a shortage of equipme Mt.
The government is behind in paying
| its guarantee to the railroads.
| There would not be so much of a
shortage of equipment il railroad
terminals had been planned scien-
tifcally. nfortunately in the rail-
81 rfx LII -
road. in obtaining for itself the most
/ favorable sites. sought to place its
competitors in most unfavorable po-
sitions. The waste through this fol-
ly at all great points OF cuncentra-
tion are incalculable.
/ Today the railroad terminals. from
an economic viewpoint, are very bad
1t has been pointed out by Leonor
F. .Loree, president of the Delaware
ana Hudson Railroad. that the rail-
road box car cit is from freight. not
passenger traffic. that railroads earn
dividends) is on the main line in
gainful occupation only two hours
and twenty-four minutes out OF
every twenty-four hours of its life.
/ One of the great problems of the
American railroad is better terminal
facilities that will reduce switching
movements. There would be less of
car shortage if there were better
planned railroad yards and better
methods for interchange of cars.
) Unquestionably, the government
deserves bitter criticism for delay
ing settlement of just claims of the
railroads.
: There is no excuse for this.
But picturing the railroads as be-
ing in practically worthless condi-
tion" is silly.
The railroads had TO stand the war
test. They stood il well. very well.
all things considered. They need a
tremendous amount of refurnishing.
They are going to get it, They have
gained one thing of immeasurable
worth. This is public good will.
The transportation act Is great
and generous piece of legislation. 1t
is more generous than many railroad
men expected. The railroads are go
ing to get a good increase in rates.
The replacement valuation plan will
make il possible for them to earn,
under the 5R per cent rule, far more
than they did before. The railroads
are On their way to better days.
Don't get the notion that the gov
ernment is not aiding in the re-
habilitation of the railroads. Sec
tion 21O of the transportation act
prescribes that $500, 100000 may be
advanced to the lines for new equip
ment. The railroad executives have
designated how this money Is to be
apportioned.
In addition to this, the railroads
on their own account and wholly
independent of the governmental
credit have arranged within the
first four months Of this year for