Evening journal., 1923-01-22
WHAT GOVERNMENT CONTROL COST THE TAX
PAYERS

n EIAwAFEANs have q keen recollection OF what
~ they suffered a result OF government cont oil OF
the railways under Democratic auspices. That suf-
ferng made up among high rates, serv1e en-
larged elements Of hazara and rulnous declines in
security values
although March l II will be three years since the
railways We're returned private operation" says the
Railway Age 1T Is still impossible TO how much
government OF railroads will finally the
taxpayers United States but statistics avail
able sow that the total will be approximately t17o0-
100000. The recent annual report OF the Interstate
Commerce Commission gives Information regarding this
matter that has attracted less attention than IL de-
serves"
When Walker d. Hines retired direotor-genersl of
railroads 1920 he estimated the deficit which
had been incurred during the twenty-sx months of
actual government operation at ts0O.47s75s. Mr.
Hines estimate based upon tho assumption that
the railways would be able substantiate their
claims for indemnities failure of the
government adequately maintain their properties.
The railways however have been able TO present such
conclusive evidence OF under that the Rail-
road Administration mas allowed claims upon this
ground amounting to s125,42ss1O and officially eet-
mates that additional claims that will to>be al
lowed will amount ss7,167664. The 1nterstste Com
Commission estimates that IT will allow
claims of short line railroads for deficits incurred in
the first six months OF government control which will
add $4,000, 600 to the foregoing amounts The eT-
penses incurred by the Railroad Administration from
March l. 1920 January 1. 1922, collecting the
data and carrying the negotiations incidental ef
fecting settlement OF the accounts OF the government
with the railways arising government opersan.
amounted to s3.445222. These items total s1141.-
52O.452 the dehct actually charseable govern
ment operation during the twenty-sx months ending
March. 1890.
When the railways returned to private opera
don they incurrng deficits higher rate than
of of Raj
tration make sufficient advances in rates the
increased expenses. In addition demands OF the en-
poyes were pending large wages which
subsequently were granted by the Railroad Labor
Board Therefore the government continued the guar
antees period months The Interstate COM
nerce Commission in its report estimated
1t s5SsOsOOOO the amount that the government will
pay the railway companies to reimburse them
or the deficits incurred during these six months We
arrive then the following result
Deficit due twenty-six months
TO government operation 81, ,141,5 ,52O,4B2 =
Deficit under guarantees for first
six months under private
operation .................. 6ss,0oo,OOO
Total dehcit due TO govern
ment control ............. t1s77,52O452
When all tho settiements finally made with the
railway companies the total deficits incurred as result
Of the having the railroads anal
which the taxpayers will had to pay probably will
be larger than this The for the twenty
six months of actual government operation will be
about S44 OoO 600 month and the the en-
tire thty-two months during which the railways were
guaranteed the standard return" will be about
s52.0Oo,OOO month. The country's first experience
with operation of its railroads has been
an expensive for everybody but expensive OF
Ill for the taxpayers.
With those facts and figures before him to give de-
allied point to his bitter experience no intelligent
Delawarean fail to commend the Republican ad- !
ninstration in restoring the railways private
rol. The chief handicap suffered since then by the .
private control has been that most OF the railways
which were fine going concerns when the Democrats
ook them over were wrecks, nearly wrecks when
he restoration was made.