The Washington times., 1921-05-11
monopoly Of
RAILS SCENTED.
Hapgood Sees Danger in Free
Hand" Advocated by Execu-
tives Before Senators.
By NORMAN HAPGOOD.

bull by the horns in their arxu-
ments before the Senate Committee
on Interstate Commerce yesterday.
II remains to be seen whether the
bull will get away with the situation
or remain tamely In tho hands of
the railway executives, or rather in
the hands of the bankers who con-
troll these executives.
SAYS U. .. srRANGLED ROADS.
The chairman OF the Southern Pa
cific, Julius Kruttschnitt. did not
mince words. He stated that the Gov
ernment had "strangied the railroads
into something like bankruptcy" ons
part Of that sentence we can al AgrpA.
The condition or the railroads Is
extraordinarily like bankruptcy. In
deed. the reason that some big roads
have been able to keep out OF bank
ruptcy up to now Ii that the riche-
roads have kept them alive.
hope the Government case will Be
adequately presented. but ! doubt IT.
Mr.. McAdoo IL preparing statement
on the railroad situation. but do not
know whether he will be called ~
the Cummins committee.
Walker d. Hines 10 now In Par1s.
Will the Cummins committee call him
back? II they do. Mr.. Hines will hand
the railway executives . few facts
that will make the chairman of the
Southern Pacific think. taking the
bull by the horns is ono thing and
getting away IL another.
Also, hope what 10 left Of the
Railroad Administration here In
Washington will make . full state
ment before the committee. To help
Senator Cummins get interested In
this aspect Of the problem will hand
out In advance q few figures.
NEED NOT PUT Up HONEY.
The railroads have put In claims
for under maintenance amounting to
over a thousand million dollars.
The administration has reasoa to
believe that the full amount Cf the
under maintenance, which was forced
on the Government BY lack OF ties
$500. 900. 900.
Moreover, there is no reason why
tho Treasury should advance . cent
to meet this bill, siucs there are
enough securities now in the hands
of the Railroad Administrator be-
longing to two roads alone to
amount to about $500.000.0o0. All
the Government has to do 10 to give
the Railroad Administration permits
sion to sell these securities.
Mr.. Kruttschnitt undertook to give
q remedy for the situation. He
wants a free hand on long and short
haul rates. 1t was that free hand,
granted in the loose days before we
became alarmed over government by
big business. that caused the build
ing UP of certain centers 1T the ey-
pense of smaller cities and towns
all over the country.
II was that free hand that caused
the growth of the worst monopolies
that now control the necessities of
life. It was in large part the DIS
elimination practised BY the rail-
| roads in favor of the larger enter
prises that saddled the farmers Of
this country and the consumers Of
this country with the conditions
under which we all pay more for
necessities while the real producer
of those necessities IL paid less.
Mr.. Kruttschnitt also wants to be
freed from the present assisted COM
petition of the internal waterways
and the Panama Canal. There you
have the crux Of the problem.
We are tierd Of paying money d.
| rectly to the railways out OF the
| treasury. Shall we subsidixe them
Indirectly by giving up our waterway
encouragement The argument to-
day was in substance that We should
go back to the grand old days whom
the railroads ran this country with .
free hand.
T. Dewitt Cuyler's statement was
read. He speaks AZ chairman of the
Association OF Railway Executives
But he Ii considerably more.
CONTROLS LABOR POLICIES.
He is a director OF the Bankers
Trust Company. the Guaranty Trust
Company, the United States Mortgage
and Trust Company, and the Equitable
Life Assurance Society. He 10 chair
man of the road committee OF the
Pennsylvania Railroad and q director
of the road. He is lawyer.
The association for which Mr.. Guy
Ter speaks represents 101 railroads
and is the body that determines the
charge that high wages are the
principal example of high costs is,
OF course, put forward.
| Here Is one OF the most funda-
mental Of the issues before the COM
mittee on Interstate Commerce. The
men say that they have q right to an
American standard Of living. The
roads challenge that claim.
The Esch-Cummins act was highly
|
the Presidents statement about "less
| Government in business" but It was
| not defined. 1t never has been de-
| fined.
Perhaps the Cummins Committee,
before II gets through, will call Carl
r. Gray. president of the Union
Pacific.
| In April. 1919, Mr.. Gray said the
reasons for the Governments taking
over the railroads "were threefold:
The first was financial. the second
was because of the necessity for q
sterilization of the labor situation.
and the third was because of the
utter impossibility of their function
ing as corporations in the manner in
which the Government demanded and
| needed"
, II the Cummins Committee digs to
! the bottom, It will turn up lot.
KARL EATS IN KITCHEN ON