Evening star., 1921-04-15
BY G. GOULD LINCOLN.

BY G. GOULD LINCOLN.
Copyright. 1921. by The Washington Star.
! This IL the concluding article Of a series OF
the acute railrVad and railroad labor prob
Remedies for the railroad situation
in this country are offered on ever,
side. The doctors disagree. however
as to the correct treatment
The action of the Railroad Labor
Board yesterday in abrogating the so.
called national agreements. covering
railroad employees beyond the train
men. providing that conferences shall
be held upon working rules by the
roads with their men, is the first
definite step looking to clearing up
Of the situation.
In the first place there are the rail-
road executives, who say they can run
the roads at a profit If only the gov
ernment will keep hands of. They
will cut wages and reduce other ex-
penses until their expenditures have
/ once again come within their receipts.
Then therA re the railroad work
lers-or at least good part of them
who are demanding that the Plumb
plan for government ownership of
the roads, with the men having say
| in the operation. Many persons out
| side of the railroad workers-persons
| who believe that all public utilities
should be owned and operated by the
| eminent ownership plan.
In between these extremes is to be
found great mass of citizens who
desire to see the railroad problems
worked out along other lines. The
public is interested principally in
seeing a reduction in freight rates
| and passenger fares There also are
! many thousands of persons, who are
interested in seeing that the stocks
and bonds Of the roads do not be-
~lsyN NtaA1
ers of these securities, and also hold
ers Of life insurance policies in in
surance companies that own large
blocks of railroad bonds. If the Sc
curities owned by these companies go
down in price, the insurance COM
panies suffer, and through them the
policyholders.
Security Owners Act.
For the first time in history there
has been recently a concerted move on
the part of security owners of the
railroads to see that the roads are oper-
ated advantageOusiy. In the past 1t has
too often happened that railroad
companies, and big systems. were the
plaything OF the financiers-men who
manipulated the stock market and
made money in their gambling ope-
rations rather than from the rail-
road properties. The association of
railroad security owners. represent
ing the owners of some $4,000. 900
worth of securities, SO they claim, has
undertaken to deal with the railroad
workers. seeing that the railroad
executives apparently were getting
nowhere. but heading for a deadlock
in their dealings with the men.
This effort of the owners of the rail-
road securities is regarded by many1
as one of the hopeful signs in the sit
uation. Another is the manner in
which President Harding is going
about dealing with the controversy
between the roads and the men.
President Harding is one of the great |
est coneiliators that ever sat in the |
White House. He has the faculty of |
getting men together. and getting
them to settle their difficulties. For
instance. after his nomination at Chi
cago, che democrats hoped and hoped |
again for split in the republican n |!
ranks. There might well have been,
with SO many factions and different
interests. But. Mr.. Harding held alii
together.
Opposes Government Ownership.
From the message which he deliv-
cred to Congress on Tuesday 1t Is very
evident that tho President is strongly
to government ownership
and operation Of the roads. and also
ment to aid the roads. He said in his
discussion of the transportation prob
lems:
IF we can have it understood that
Congress has no sanction for govern
ment ownership. that Congress does
not levy taxes upon the people to
cover deficits in a service that should
be self-sustaining, there will be an
avowed foundation on which to 70
build.
Freight carrying charges have
higher and higher until com
meHce is halted and production dis
coufaged. Railway rates and costs Of
operation must be reduced
While the President does not out
line In detail the remedy as he sees It.
course that must be undertaken. II
his suggestion is carried out II is
likely to mean some reduction in nav
TO the railroad workers, including q
pairing down Of the salaries Of the
nls higher paid officials. and also in.
the railroads by the railroad execu-
tives. It may become his task to pre-
vail upon the workers to accept a re-
duction.-
Railroad freight rates have been re-
vised upward to such point that,
the rates have brought about a re-
auction in transportation business
very large reduction, according to
the shippers. The railroads do not
ADMIT this generally. though they do
admit that the increases have cur
tailed the long, hauls and interfered
somewhat with business. But the
farmers out In Kansas. and in otheri
states are clamoring because they
cannot move their products, they say.
without q great expense that spells
an actual loss to them. The lumberi
on the Pacific coast
rates on their commodities. and the /: