The labor journal. [volume] (Everett, Wash.) 1909-1976, 1921-09-09
WOULD DONATE
S5OO,OOO,OOO
TO RAILROADS
(By CHARLES NJ. KELLEY

by parties outside"
Thus spoke Senator Stanley, of
Kentucky, when the Senate Com
mittee on Interstate and Foreign
Commerce was railroading through a
bill that places a half billion dol
lars of the public funds at the dis
posal of the railroad managers and,
perhaps, opens up a way whereby
they can come back again and again
for additional millions, until the
total subsidy will be so large that
the imagination is staggered by the
mere contemplation of it.
Senator Stanley was indignant
because the Committee had heard
hand-picked advocates of the sub
sidy and then absolutely refused to
hear any person in rebuttal of their
testimony. Representatives of the
public, of the farmers, railroad
workers and shippers were denied
an opportunity to tell what they
thought of this measure. Former
Railroad Director William G. Nc
Adoo and former Director Walker
D. Hines. who know more of gov
eminent operation than any other
two persons, had offered to come
before the committee and tell it
what they thought should be done
with the railroad problem. The
committee CURLY declined to re-
ceive them.
Having built up a case upon the
testimony of special pleaders for
the railroad interests, the commit
tee, always subservient to the rail
road lobby, turned the doors against
all other sections of the public and
proceeded to 0. X. the most mon
strous suggestion that has yet en-
anated from a quarter that knows
no law save the will of the specu-
lators and financiers who are fore
ing the public to make good the in
| adequacies of private operation of
transportation.
1t developed during the discus
sion of the subsidy bill that its
loosely drawn provisions will make
it possible for the railroads to Sc
cure more than the original $780,
100000. 1t was stated by OPP
ponents that the War Finance Com
mittee, behind which this raid is
masked, can, if it sees fit, accord
relief up to the full limit of its
| resources, which are in the neigh
borhood of $3,500,000,000. Having
been written by railroad attorneys
1t is just such a measure as they
| would like to see enacted, for it
will settle for some years to come
all questions of finance. The rail
roads can continue to waste their
substance, neglect the public in
terest, engage in riotous gratis
and manipulations, and when their
treasures run low they can tap
Uncle Sans for as much as they
may need for the time being.
Yet, shameless as is this bill
it seems assured of safe passage
through Congress. The admins
tration is thoroughly committed to
it and is annoyed because Con-
gress has dared to mildly suggest
that it should have a vacation be-
fore it takes it up for final con-
sideration. The advisors of the
President have denounced as "dem-
agogues" the small handful of men
who are still loyal to the public
welfare and insist that public funds
should not be so generously dis
tributed until the matter has been
fully looked into.
The railroad lobby and those con-
trolled by it don't want any dis
cussion of. this measure, because it
cannot withstand scrutiny. The
plan is to get it through with be-
fore the people awaken to its true
import. They know that sooner or
later they must face a storm, but
they want to face it after the rail-
roads have got everything they
have had the nerve to demand.
Senator Reed stated the case
clearly when he said that the gov
eminent was to give the railroads
ten years time on what they owe
it and, there being a mutual in
| debtedness, instead of setting off
one debt against the other and
paying the balance, the government
pays its side of the account and
gives the railways time on their
side of the account.
But there is something more re-
markable in the proposal than ap-
pears in Senator Reeds statement.
The railroads owe the government
S763, 100000 for additions and bet
terments made during federal con-
troll. In addition, the government
holds equipment trust certificates
Of the railroads amounting to near
ly 100000 900 for expenditures in
the purchase of cars and locomo-
tives. The railroads also owe the
government more than 100000 900
for loans and advances made to
them out Of the revolving fund of
S3OO,OOO,OOO created by the Cum
minsEsch bill.
Over and above all this, the rail-
roads are demanding more than
81 300 900 900, in addition to
1852, 431, 051 already paid out of
the treasury in satisfaction of a
bogus claim for under maintenance
during federal operation.
Only very simple minded soul
will for one brief moment believe
that the railroads will not get all
they are asking. Congress will see
to that. We have, in very truth,
railroad operation of the govern
ment. The banking outfit has the
high sign on the administration and
Congress is only too ready to do
its bidding.
Foolishly. of course, some sim
cere lawmakers believe that by Civ
ing the railroads money they are
solving the railroad problem, which
continues to be the most vexing
question before the government.
The railroad pleaders have said
that they lack funds, and that
when they are supplied everything
will go along smoothly and every
bOdv will ha bapn,, o.oJ ....o,x, -.