Newark leader. ([Newark, Ohio]) 1917-1946, 1921-09-30
GLOOMY OUTLOOK
DILAPIDATED CONDITION OF
RAILROADS A PROBLEM
Coal Shortage and Famine May Force
Government to Assume Control
Before Winter is Over
(By Federated Press)


to breakdown of rail transportation,
may drive the American people to
compel President Harding to again
take charge of the operation oI the
railroads this winter.
Two or three weeks Of severe
weather, added to the probability that
the coming winter will be long and
stormy, will drive into the normally
inert minds of the bulk of the Amerl-
can people three facts:
/. That the railroads are in dilap-
idated condition as to road bed, mo-
tive power and cars, far beyond the
ordinary limit.
2. That the country is short 12O,-
100000 tons in its coal supply, and
that when full production is started
the utmost efficiency in hauling it to
the coal-famine regions will be de-
mandolin vain-of the railroads.
3. That the railroads are nearly
exhausted as to cash, due to then
distribution of over half billion dol
lars of cash surplus to their stock
holders.
The logic of this terrible situation,
facing hundred million people at
the outset of winter, would be loud
outcry for the quick repair of rail,
road tracks, locomotives and cars.
AS State after State reports short
age of coal, and as storm after storm
sweeps down from the Northwest, pub
lie feeling will probably become gal
vanized into action. President Har-
ding will be besieged by delegations
asking him to compel the railroad
companies to hauld coal which they
should have been hauling during the
summer months. Then it will be dis
covered that the equipment is in even
worse condition than at the time OF
the collapse in the winter of 1917
1918, which led to Government oper-
alton.
Something will have to be done to
place the properties upon basis OF
efficient operation, and at the same
time to make them pay their way
Private operation for the past year
and a half has been miserable
failure, proven by the existing condl-
ton of decay and virtual bankruptcy
The organized employees will refuse
to cloud the issue by going on strike
but will show that despite their sac
rifces in wages and conditions the
private management continues tic
wreck and loot the roads. The pay
ment of $5OO,OOO,000 cash dividends
to security holders from the surplus
of former years is evidence of THEN
desperation.
If a strike takes place, it will prob
ably be in support of the public de-
mand for public operation as means
of getting coal and food to the coun'
try during the winter. Such, at least
is the view of some of the RAILROAD
labor spokesmen here.
Market. reports published in the
Wall Street Journal list the following
railroad securities as being regarded
as second grade investments:
Chesapeake & Ohio; Baltimore &
Ohio; st. Louis & Southwestern
Southern Railroad Co.; Chicago, Rocl
Island & Pacific SYSTEM; Western
Maryland first As, and Peoria &
Eastern first As.
AS reviewed in an article appear
ing in Labor" organ of the sixteel
railroad labor organizations, the rail
roads reported on August 18th tina
one-sixth of all their freight cars were
in bad order and nearly rs per cen
of all box cars were out of commits
sion. This is three times the norma
percentage of disrepair. Half mil
lion employees have been discharged
at a saving in operating expenses o
$8OO,0O0,00O year, but this is NOR
than offset by the rapidly accruinl
loss frCm deferred repairs.