The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1923-12-11
BY JOHN CARSON

xvi ASHINGTON, Dec. Ito uR.
NV derstand the railroad problems
- Of today and of 1917 when the
Government took over the lines, some
railroad history must be recalled.
In 1928. the corner stone was laid
for what is now the Baltimore &
Ohio system.
From that time on, railroad enter
prises doomed. Untold profits We're
made in speculation. Many Of the
great fortunes of today were estab.
ishcd. The financial history is pretty
sordid. The financial attitude towards
the public was APPLY expressed by the
railroad promoter who said the pub.
lie he damned"
Then came a day Of reckoning
The public began to get some inside
Information about railroad promoting
confidence in railroad securities
waued and so did the railroad devel-
opnent. For example, production n
our big industries increased at the
rate Of 3.6 to 4 per cent a year. From
1908 70 1921, railroad facilities in
creased by only per cent-about u
per cent each year.
Then came 1917, war and a crisis.
Equipment Suffered
NThe railroads claimed capital IN
vested then Of about $40, ZOO, 900, 0G0
On most of that--because most of ii
was funded debt in the form Of bonds
they he'd to pay interest To pay
the interest and prevent bankruptcy.
most Of the roads permitted their en-
ployes and their equipment to suffer.
The morale Of the employees was at
low ebb and President Smith Of the
New York Central testified "95 per
cent Of the railroads IS labor"
Railroad executives testified with
out exception, before the Interstate
Commerce Commission their en-
ployes were underpaid. They wanted
increased rates to increase the pay,
they commended A government com
mission that investigated in 1918 re-
ported that:
"Fifty-one per cent Of the employees
received less than SIS a month in
December. 1911. and so per cent re-
ceived less than 500 a month. The
dollar at that time was buying II
cents worth Of goods as compared
with the dollar Of 1913"
Morale Was Low
There was little morale. no great
loyalty, constant labor troubles. res
ignations on designations. One rail
road executive testified his shop force
was turned over three times in one
year.
The equipment was IN Just about as
bad condition. Every railroad presi-
dent that appeared before the Inter
state Commerce Commission so tes-
titled The roads. they said. could
not make adequate improvements be-
cause they could not finance them.
Temporary repairs were made 10 per
NIT operation of locomotives and
cars.
We are not paying the rates and
we are getting the service" said
Daniel Willard, president Of the Balti-
more & Ohio, before the Interstate
Commerce Commission IN November,
1917. He was speaking OF labor con
ditions.
Speaking Of equipment Willard
then said:
I'VE are trying TO do more bust
ness than we properly can do with
our plant and we are not doing it eff
ciesntly."
The testimony Of officials Of other
roads was similar and in most in
stances the picture painted of de
morallzed working forces and made
quate equipment was worse.
In that condition the Government
stepped in when railroads leading into
Atlantic seaperts were bloCkaded. the
war allies were crying for foodstuffs.
and a war organization Of railroad
executives pleaded, by inference. the
inability of the roads to stem the
crisis.