New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-01-04

and social conditions are to confirm.
to improve, the railroads must servs
the country with progressive eficiencv
and adequacy. The United States can.
not stand still; it must go ahead. and
IT must have the transportation system
that will make this possible. The car
rlers must be given the necessary
funds or the government must take the
place of the carriers.
Experiment Called Failure
"The country has had two years. ex.
perience with government operation:
and. with the exception Of the railroad
employees, very few people want the
experiment continued. Free as the
people OF the United States are with
government funds, they will not be dis
posed to make an initial investment Of
eighteen to twenty billion dollars in
railroads and to raise a minimum of
even per cent Of that sum-a billion
dollars additional capital each year
to provide for betterment and extern
sions.
IF shippers and travellers had been
better served during government ap-
Grafton than they were during corpora
ton management; if tho government
had made ends meet, instead of incur
ring large deficit, the public might
eminent operation and might favor
ultimate public ownership Of the rail-
roads; but the showing made by the
government in not encouraging.
THE inability Of the government to
run the railroads with positive success
has not been due to incompetent mana
gerial ability. Directors General Nc
Adoo and Hines are men Of great ex-
ecutive capacity, and they called to
their assistance skilled railroad off,
Gals. Nor has the war made success
full government operation impossible.
The President was able to vest in the
railroad administration his practically
unlimited war powers; the government
was able to make whatever changes it
deemed desirable in transportation
methods and practices, and, at least
while the war was on, the public was
not disposed to question the govern
ment's acts.
"Thc limitations Of government man
agement of transportation have been
clearly revealed by the experience of
the railroad administration during the
last two years; the service has become
less efficient, the number Of employees
has been increased, wages and other
expenses have risen rapidly (partly be-
cause Of the war and partly because Of
political reasons), revenues have not
been increased to meet the enlarged
expenses and large drain has been
made upon the taxpayers to mako up
annual deficits.
"rhe government is entitled to credit
for having given greater unity to rail-
1t has done much that the carriers
were prohibited from doing. The pub
lie now realize that cooperation of
the carriers in the joint use Of equip
ment and terminals should be encour-
aged, instead Of prevented. Past regu-
lation forbade many economies and
conveniences in transportation that will
in the future be required of the car
riers as result Of government opera
ton, and it is most fortunate that the
experience Of the government has given
the principles that should control the
relation Of the government to the car
riers.
Discusses Pending Bills
During the next few weeks the
country will decide upon its future
railroad policy. The Senate and House
Of Representatives will compose their
differences and permanent legislation
for the regulation Of the railroads will
be enacted The two bills now being
considered by the conference commit
tees of the two houses differ funda-
mentally. The Senate bill is based on
the theory that the many existing
railroad lines should be brought to-
gethcr, within a reasonable time, into
twenty to thirty-fve large permanent
strength. Consolidation is to be vol
untary for seven years; thereafter
compulsory, If necessary. The large
railroad companies of the future are to
be Federal corporations, and their reg
ulation, except as to rates, is to be by
a Federal board of five members, whose
organization and functions shall be
strictly executive. The House bill per-
mits but does not require corsolida-
ton. 1t is silent upon the subject of
Federal incorporation. The admnistra-
be by the Interstate Commerce Com
mission, the membership Of which is to
be increased from nine to eleven. The
duties of the Interstate Commerce
Commission would be greatly increased
by the House. bill.
1.-THE railroad legislation now pend
in in Congress must solve many diff
cult questions, but the most critical
one is that of providing for the future
regulation of railroads in accordance
with a policy that will cause the car
riers to secure revenue sufficient to
enable them to perform their services
adequately and with progressive eff
ficiency. The railroad business must
be made attractive to private invest
ments or the country will have to
adopt government own ership and OPP
GRAFTON Of the railroads. There is no
other alternative"