The New York herald., 1921-04-05
Lenroot's Wild Railroad Plan.

SenalOr LENHOOk UfopOSSC ma
tioDal railway corporation, with divi-
dends guaranteed Jut of the United
States Treasury If they should not be
earned, would not register with the
overburdened taxpayers Of the coun-
try, who have had enough of that
sort Of business to last them a iife-
time. 1t would not register with ship
pers, who know TO their sorrow what
happens to the service OF a deficlt
breeding transportation system 1t
would not register with the present
railroad security holders. who would
have to be out Of their senses to vol
unteer to exchange their properties
for the stock of the new national
company, the ownership Of which
would be theirs in name but the con-
troll of which would be in the hands
Of men who did not represent even
the minority owners. dad not. indeed,
represent any owners ut all.
Either the present owners and
other security holders would refuse
To 20 into such an arrangement of
retaining their ownership but surren-
dering their control or. if they could
be compelled by any force OF law or
circumstance to make the exchange,
they would proceed to sell as fast as
they could the new stock for what 1t
would bring, letting them thus get
out at whatever loss. Their getting
out under such conditions woull kill
any chance the national railway cor
poration otherwise might have had
of raising capital for Lew roads and
extensive improvements of the old,
because only the financially irreepon-
sible as we'll as the economically
loony would be willing to be caught
lead with such stuff in the pockets Of
their clothes.
Another weakness Of the Lenroot
fantastics Is the proposal that 40 per
cent. Of the surplus earnings above the
maximum 8 per cent return to the
stockholders should go to the railway
workers as an incentive to their
greater efficiency. Any practical rail-
way manager or railway wage Garner
could have pointed out to Senator
LENBooT the plain arithmetic Of his
proposal In a way to make him feel
foolish.
1t would take billion of dollars
a year, in round numbers, to give a
5 per cent. return on the combined
value Of the railroads. 1t would take
about S1.200,000000 to give a 6 per
cent. return, the suggested maximum.
No railroad man in his widest
dreams has ever seen a practical pos
sibility of more than 81 1,200,000,000 q
year coming out of the existing Amer
lean railway system as net earnings.
But suppose the American public
would submit TO or American business
could stand net earnings OF a full
$3.50, 100000 beyond the 81 200, ,0O0, 900
required to return per cent on
twenty billions of dollars of railroad
capital and value-suppose there were
$50, 900 left over after the maxi
mum return to stockholders; then II
would be divided, according to the
Lenroot vision, 80 per cent. to the
Government, 80 per cent. to the stock
holders and 40 per cent. to the rail-
way workers
But 40 per cent. Of $150,0Cv,000
would be $5,0O0,0O0 a month, and S5,-
100000 a month divided among some
100000 railway workers woult> be
an average to the MIN Of $3.50 a
month. And a chimerical $3.50 a
month, totalling the $60,0O0,00U
year for all the railway workers,
would not make the very faintes' ap-
peal to the men who have a way Of
demanding billion dollar increase
of pay at one clip.
With characteristic contempt for a
mere five dollar bill once in two
months-not even cigar money-does
anybody but LENRooI doubt they
would 20 on with their old programme
Of necessarily, unanimously ana fa-
natically running up the payrolls all
the way from couple Of hundreds
of millions 10 a billion at a time for
the American public to meet Ia exorbi-
tant transportation bills and inordi
nate tax levles poured into the United
states Treasury to make up the rail-
Dad deficits? Can anybody see the
payroll raiders giving up their dearly
orized pay grabbing sport for prob
ematic $3.50 month?
Senator LENRooT has done some
useful work in Congress along the
lines he is fitted by capacity and ex.
perience to follow; b. ms q -ccog-
nlzed master Of national economics,
leading authority on practical rail-
roadlng, or even plain, every day
fudge az human nature, he appears,
after his weird solution Of The rail
road problem. 10 be in the klndergar-
ten infant class.
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Dutchmen Capture New York.
Spring is the season when Father