The labor world. [volume] (Duluth, Minn.) 1896-current, 1921-08-27
INTO A WORSE SITUATION.

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INTO A WORSE SITUATION.
The railroads are in bad shape. No
good purpose will be served by attempt.
ing to make it appear otherwise. Ac.
cording to Director General Davis, OF
the railroad administration, practically
all Of them face insolvency, which cat
be averted, if at all, he says, only by
the government loaning the carriers
hundreds Of millions of dollars.
With this view the administration
and the majority Of the members of
congress- concur. They have been lis
tening to the hard-luck stories Of rail-
road presidents and their lobbyists un-
til many Of them doubtless are honestly
convinced that it is a patriotic duty to
annex the Federal treasury to Wall
street, to be used to "put. transporta-
ton on its feet,'' as Senator Kellogg
expressed it.
It is unfortunate that congressional
committees that have been devoting a
great deal Of time to railroad questions
have not called before them other than
special pleaders for the railroads:
There are two sides to all questions;
but congress proceeds on the; theory
that only men who have jobbed and
robbed the railroads, putting them in
their present sorry plight; are capable
Of telling what must be done to set
them right again.
There are many opinions concerning
Henry Ford. But there can be but one
opinion as to his business ability. He
has demonstrated that so completely
that his most sincere enemies now ad-
init that he is the outstanding figure in
American industry.
Ford owns and operate a railroad and
is making it pay despite the fact that
he has increased the wages Of the work.
ers and reduced the cost Of service to
the public. How has be- accomplished
what railroad managers and financiers
have regarded impossible! Hear what
he has to say:
<'The railroad story ha. been one
long story of dependence on money be:
fore everything else. True, the rail.
roads are great national institution.
True also, there have been men Of
vision connected with their develop.
ment. But the major part Of railroad
history has had to do with stock mar
kets and games Of exploitation.
"Today far too many railroads ale
run, not from the offices of practical
men, BUT FROM BANKING OF.
FIcEs, and the principle of procedure,
the whole outlook, is financial-NOT
TRANsPORTATIONAL but FINAN.
CIAL.
There has been a breakdown of
ra1lorading generally, in this the great
est railroad country in the world, sim.
ply because MORE ATTENTION HAS
BEEN PAID TO RAILROADS AS
FACTORS IN THE STOCK MARKET
THAN AS SERVANTS OF THE PEG.
PIE. Outworn ideas have been re.
tanned; development has been practical
~ stopped; railroad men with vision
have not been free to grow-THF;
DEAD HAND OF FINANCE HAS
BEEN HEAVY ON EVERY DEPART.
MENT.
GAS a result, what! Why, it is
thought that perhaps $1,000, ooo, 900 or
thereabout will solve the difficulty. Let
this be understood-$1, 900 ,0oo, 900 will
MAKE THE SITUATION ONE Bill.
LION DOLLARS WORSE.
"THE PURPOSE OF THE Bill.
LION IS SIMPLY TO CONTINUE
THE PRESENT METHODS OF RAIL.
ROAD MANAGEMENT, AND IT Is
BECAUSE OF THE PRESENT METH,
obs THAT WE HAVE ANY RAIL.
ROAD DIFFICULTIES AT ALL"
To that indictment there will be no
serious objection. 1t is so obviously
true that practically every intelligent
person outside of congress long ago
recognized it.
What the railroads for forty wears
have been doing congress is now trying
TO- Perpetuate. The railroads are still
regarded as factor of the stock mar.
ket and not as agencies for public serv.
Ice. In the transportation bill, in all
the varied schemes for temporarily
bridging railroad difficulties, the pub
lie interest has been entirely over.
looked
When congress decreed that the rail
roads should have a guaranteed return
without regard to the effect Of that
provision upon the public, it regarded
solely the financial side of transporta.
ton. The public has suffered heavily
for CONGRESSES neglect and the railroads
were not helDeA. Todav +hA, NV. IL