The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-07-04
RAILROAD CONTROL

{ I. blylne III an dIliClG III
the Saturday Evening Post discusses
The Railroad Middle" and proposes
a real solution" of the problem Of
regulation. He says in part:
THE principle of government super
vision and control of interstate COM
merce is well established and essential,
but governmental supervision and con-
troll must be progressive and not re-
dictionary, must be business-l like and
not academic and theoretical, if the
railroads are to cease to be a taxable
expense and are to come back to their
former status.
Admitting all just contentious as
to abuses and derelictions in railroad
management in the past, the fact re-
mains that, as the railroads could not
operate at profit for themselves or
for the Government, there is somthing
wrong in the system.
THAT wrong, in the judgment of
men qualified to speak, is not in a
supervision of the roads, but in a
supervision that is legal and not COM
mercial. Railroads are business enter
prises as constituted in this country.
If they become governmental enter
prises the question of their conduct
takes another phase. But if they are
half commercial and half governmental
their position is impossible, and that
is shown by the large amounts the
taxpayers have been muIcted for their
support in the past few years.
For example. the time to do bust
ness is when business is being done
If a raise in railroad rates was justifi-
able it was justifiable during the great
business boom in 1919 and the first
half of 1920. Then there We're goods
to move. Then there was business for
the railroads. The railroads were not
allowed to raise their rates sufficient
ly to take profitable advantage of the
business boom. The reason given was
that a raise of rates would increase
prices
when the period of depression
came, after the boom had gone and
when there was a vast decrease in
work for the railroads, the rates We're
raised by and with the consent of the
Government on the theory, perhaps,
that a raise then would decrease prices
The bars were taken down after the
fields were empty.
THAT is an illustration of the Gov
eminent in commercial business. That
is why every man who has given at
tention TO the matter insists that the
Government must get out of CONNER
cial business. If higher rates were
justified when the roads finally did
get them they were justified when
they would have been profitable in
stead of restrictive.
The real solution of the question and
the real way to relieve the taxpayers |
of this railroad burden is to grant to |
the railroads the ordinary fiexibility
of business operation that the private /
business enterprise has. 1t is not
argued that the Government should
abandon supervision of rates, but it is |
held that the railroads should have
the opportunity that any business man |
has of adjusting his prices to condi- |
lions as the conditions arise instead
of being compelled to wait for six
months or a year for the action of a /
governmental body.
eff the railroads had f1exibility of |
operation they would be in far better
case. and the rates they might make
could be subject to review and rebate /
if excessive. The point is, as held by /
students of the question. that the roads /
are strangled now by the restrictions
upon them which preclude their TAX
ing advantage of business conditions
as they arise instead of waiting until
those conditions have passed.
THE thing seems reasonable. A
great deal of the prosperity of the 4
country depends on the prosperity of +
the railroads. AS the situation is at
present. relief must be given or the
must take over the rail-
roads again to prevent paralysis of
Taxpayers who have
even a remote idea of what the recent
Government experiment with the rail
roads cost them--the taxpayers-will
shudder at the prospect of this"
AGE IN FLORIDA
According 10 the census 32.4 ner- 9