The daily star-mirror. (Moscow, Idaho) 1911-1939, 1923-06-23

ardized wages, and was caught in the
sweeping current of mounting cost
it created a situation to ignore which
would quickly develop national
menace. At an awful cost we learn
| ed the extravaganza and mounting
burden of government operation. Yet
there are today very insistent advo-
Gates of government ownership.
l believe it would be a colossal
blunder which would destroy ini-
tiatlve, infest us with political cor
ruptiOn, create regional jealousies and
impose incalculable cost on the public
treasury. But we must find a solu-
ton of the rate problems and The
necessary expansion of facilities and
find that solution in spite of the pre-
| judices of present day sponsors for
operations and the present day des-
trOyers who would bankrupt or con-
ficate, else government ownership and
operation will become an accepted
necessity. Nor do L share the views
of those who would lower rates with
out regard to railroad good fortunes.
The prosperity of the railways is the
prosperity of the American people and
the property rights in railway invest
ment are entitled to every consider
alton under our constitution which is
due to property rights anywhere. Any
tendency toward confiscation will
lead to confusion and chaos; and
destroy the very foundation on which
the republic is builded
1t is easy to understand how many
people contemplate the abolition of
competitive varying charges and the
elaborate machinery of government
regulation, and argue that the logical
step is to put them all in one COM
mon pool under government owner
ship That would effect an adjust
ment between the fat and the lean,
il it didn't take them all lean. 1t
would equalize profits and losses be-
tween favored lines and the less for
tunate lines, it would abolish profits
and saddle all the losses on the pub
lie treasury.
Consolidation the Way Out.
No, my cOuntrymen, 1 am not pro-
posing naturalization, nor a renewed
experiment in government operation
the cost of which we have not yet
settled. The federal treasury cannot
well bear any added burdens until
we have lifted many of those already
imposed. l had rather solve a diff
Guilty than embrace danger.
| do believe there is a rational,
justifiable step, full of promise to-
ward solution. 1t will effect the di-
minutiOn in rates without making
net return impossible. 1t will make
sound finance possible for expansion.
| refer to the program of consolida-
ting all the railroads into a small
number of systems, the whole to be
nn6pr rIpOrOnS Snnnruic-
ion, and the larger systems to be SO
constituted that the weaker and un-
profitable lines would be able to lean
upon the financial strength of the
stronger and profitable ones until the
growth of the country makes them
all earn a just return upon capital
invested. The transportation act of
1920, known as the Cummins-Esch
law, contemplated this kind of a con-
soldiatiOn, but made it permissive
rather than mandatory. In effect, it
left the railroad managements sub
ject to a master plan set up by the
interstate commerce commission, to
arrange the system groupings of the
roads.
That provision was adopted only
after long and detailed consideration
by men of wisdom and experience,
and seemed to represent the best
judgment of leaders in both political
parties. It's weakness was that it
was doubtful whether the railroads
would be able, of their own volition,
to reconcile all the conflicting inter-
ests involved in so enormous a reor-
ganization. 1t was frankly recogniz-
ed when the legislation passed that
it was necessarily somewhat expert
al ,A1x
uncertain whether the wisdom OF a
dozen SolomOns, sitting as railroad
presidents and chairmen OF boards,
and as financial hackers of these
great properties, would be equal to
the task of organizing a group of sys-
TENS which would represent fair
treatment of all the interest involved,
including those of the public.
cit is my expectation that legisla-
tion to this end will be brought be-
fore congress at the next session.
''There are some rOads-many OF
the smaller ones, in fact-whose con-
tinued operation is absolutely vital
to many thousands of people, to con-
siderable towns, to large areas OF
country, whose revenues simply can
not provide financial facilities through
earning, pending considerable
growth in community population, to-
say nothing of earning any return
whatever on capitl invested. MOI
legerdemaine of court processes, re-
ceivers' certificates, or financial jug
Cling can save them. They must get
more revenue or stronger support, or
quit operating until the country is
more largely developed.
f'The railways have become public
institutions and government must find
a way to avoid cOnfiscatlon, avoid
starvation and maintain service and
a proper return upon capital, which
will assure them a growth commen-
surate with the country's develop
ment.
"There is another particular reason
which urged the early adoption Oh the
,,Io would he a