The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1923-12-13

w government TOOK over the rail-
- roads under an agreement to
pay rental of 1905, 524 900 each year.
The rental was based on the net in
come of three Of the most profitable
years in railroad history.
Senator Cummins Of Iowa, Repub-
lican leader, denounced the rental as
being too high" and said ut shocked
the moral sense Of mankind"
That was the first handicap to sue
cessful operation by the Government.
| Then 1t was war time. Railroad tracks
had to be built to camps and later
discarded Valuable freight could not
be shipped because Of war embargoes
against 1t. and the Government lost
that business. Passenger travel was
curtailed and the Government carried
soldiers on furlough at I cent a mile
The labor forces we've ''--~g anized
The equipment was run down
Got Immediate Results
Almost Immediately the Government
got results. Within a comparatively
short time the blockade on eastern
lines was ended and President Wilson
told the war allies they not only could
have food but so much of it had been
dumped at Atlantic ports, shipments
would be halted unless it was moved
abroad.
The answer TO this service is found
in the improved labor condition, the
power Of the Government TO nnauce
operations and the power also to force
cooperation. Most Of the improve
ment I should attribute to the i'm
proved morale of the employees.
Recently a railroad man said:
1T is to be doubted the Govern
ment would get as good service from
The men in time Of peace. doubt
that 1t would"
That was testimony to the patriodc
response from the men and indirect
applause for that service
Service Was Better
Shippers Of western fruit. packers,
ore men. coal men-all invariably com
pllmented the railroad managers then
and insisted they were getting better
service than they had been able 10
get under the private operation just
preceding.
These testimonials were given to
railroad executives then working for
the Government. 1t IS significant
none Of these executives were called
upon 10 testify for the railroads when
the railroad managers began denounc.
ing Government operation of the
roads
The Government took over the rail
roads on Jan. l, 1918. The roads were
turned back to private ownership on
March /. 1920
During the first five months OF 1913,
the railroads were operated from
Washington with William Gibbs Nc
Adoo as director general. The roads,
however, were unde- the direct man
agement Of the same railroad men
who had run them under private OPP
Grafton.
McAdoO Not Satisfied
At the end Of FIVE months McAdoo
was not satisfied with results. He
displaced some executives. rearranged
the railroad systems into certain di-
visions, recruited other railroad ex.
ecutives and placed them at the head
Of these divisions. This continued I'M
til Jan. II. 1919, when McAdoo re-
signed and his assistant, Walker D.
Hines. became director genearL
In all there were twenty-slx months
Of Government operation. In the fol
lowing six months. from March /.
1920. until Sept. l. 1920, the railroads
were operated by their old executives
and under private management. but
with a guarantee Of earnings, pro
Vided bv Congress-
The charges once made by execu-
tives against Government operation
and the answers in the light of facts
today were as follows:
Railroad executives said the Govern
ment lost $1,000, 900 600. Some ra1l-
road executives insisted on making
the total loss $500, 900, 900
The actual loss. as conclusively
shown. was STA. 900 600
Railroads contended the roads we're
run for politics and unwarranted wage
increases had been granted
Sufficient to say now, after all the
wage increases under Government OPP
GRAFTON, the Railroad Labor Board in
creased wages by $500. 900 900 more
than McAdoo and Hines had given.
The railroads claimed MCAdoo and
Hines employed an unwarranted num-
Der Of men and women. The number
of employees did increase. but McAdoo
and Hines answer first. that again IN
der private operation in 1920 the num-
her Of employees was $4,000 greater
than@in 1919, the last year Of Gov
eminent operation.