Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1922-05-12
The Truth About The
Railroads.

railroads the BHdSliE AeAtiSAS
propagandists would have US De-
lieve?
The people have heard the railroad
executives answer to that question.
N is time they were becoming fami-
liar with the other side OF the story
In preceding bulletins we nave
quoted from the testimony OF Dlrec-
for General McAdOo, who ran the
reads for the first year Of Federal
control. and of Director General
Hines. who succeeded McAdoo, and
remained on the job until the roads
went back TO their owners-Mareh
/, 1920.
Now we will place on the stand a
witness whose knowledge of the
railroad problem will not be ques-
toned and whose impartiallty IS
above suspicion.
Joseph B Eastman is a distin-
guished member of the Interstate
Commerce Commission and, because
of his position, is in possession OF all
the FACTS concerning public and
private operation of the roads.
Addressing the National Assocla-
ton OF Railway and Utility Commits
sioners at its annual convention held
in Atlanta, Ca, October II, 1921, Mr.
Eastman said:
1T occurs to me that the railroad
discussion in recent years has been on
a painfully low level. l am not think
ing of the ignorance and demagog-
uery which always enter into any
public controversy, but Of discussion
from sources which are presumably
intelligent Rather than being ar
earnest and constructive effort &c
seek the truth, it has too often, II
my impression IS correct, been
largely an endeavor TO shift the
blame; in other words, to find q
goat an endeavor productive OF
nothing but rancOr and bad blood.
"For q long time, in the minds OF
railroad operators and investors, the
Interstate Commerce Commission
was apparently the sole obstacle to
progress and increases in railroad
rates the sole panacea
"More recently the walls Of wrath
have been emptied upon the Railroad
Administration, upon labor. and
more recently still upon the Railroad
Labor Board.
"Now, | am not speaking of hor-
est criticism, We all need 1t. | have
in mind the propaganda which omits
everything that is favorable to the
object of attack, turns the spot light
upon everything that is unfavorable,
an adds q few lies for good meas
ure
"Take the Railroad Adainistra-
ton. II was guilty of errors, no
doubt; but we ought not to forget
that the necessity Of Federal control
was conceded at the time when it
was undertaken; that one of the
numerous reasons was the preserva-
ton of railroad securities from
financial Generalization; and that
the roads were operated during Fed
eral control for the most part by
substantially the same staff as now,
under the leadership of men whom
the railroad world still delights to
honor.
1.-THE fact that the roads when
under Federal control failed to earn
the so-called standard return by
many hundreds of millions of dol
lars is offered as proof positive of
the ineffciency of Government ope-
ration
"But call your attention to the
fact that during the first six months
after the return to private control
the deficiency was upwards of
100000, 900; that in the twelve sue
ceeding months, following the most
StupendOuS increase ever made in our
railroad rates. the deficiency was at
least $350,000,000; and that it was
kent from reaching a still larger sum
only by slasheS in expenditures which
have left the country with one of the
largest percentages of bad order
cars in it's history.
Take the case Of labor. The i'm
preston has been spread broadcast
that the increases in railroad wages
during Federal control were the pro
duet of intigue and political pressure
The facts are that the major in
creaSes were made upon the recon-
mendation of a bipartisan board of
arbitration headed by Franklin X.
Lane. which thoroughly considered
both sides.
Following Federal control, the
wages were further judicially con-
Sidered by tho Labor Board created
by the ESch-Cummins Act, and the
result was a further increase of
about p per cent built upon the in
creases granted during Federal CON
troll
an its report the Labor Board
said; 1T has been found by this
Board generally, that the scale of
wages paid railroad employees is sub
Stantially below that paid for SINH
lar work in outside industry; that
the increase in living cost since the