The Washington times., 1923-04-18
MANAGERS
FACE RIGID
TEST
Private Ownership Must Solve
Problems Soon or Give Way
to u. S. Control.
BY w. S. COUSINS.
Copyright, 1929, by Cosmopolitan News
Service.)

Il
| 100000 miles of American railways
has so far failed to give adequate
| transportation when needed, and
failed to haul goods at sufficiently
low rates, as well as failed in pay.
ing dividends, managers, Legislators
and shippers today are cropping for
a way out Of the national traffic
jam.
Rates are still high, dividends
low or non-existent, and lines are
overburdened with traffic in sea.
| sonable business bulges.
Hence the cry that has been
raised on all sides to do something
| about 1t. For years there was
drifting. Then, in 1920, came the
Federal transportation act, designed
to pull the railways out Of the hole,
provide proper earnings and re.
group them into more efficient
systems.
u. 8. Ownership is Threat.
It Is the first concerted effort
made to ascertain whether our ma.
tional arteries of trade can be kept
open and operated efficiently under
private management.
1t is more important to the pub.
lie that there be efficient railways
than that either the 1900, 900 en-
ployes and the 10000 stockholders
be kept appeased
Chairman Howard Elliott of the
Northern Pacific, in discussing for
Cosmopolitan News Service the
American transportation problem,
pleaded that the American railway
managers be given a further oppor.
tunity to solve the nations traffic
jam.
Sees Three Methods.
There are three ways" he said,
Tin which adequate transportation
can be secured by the American peo-
pie.
First, by the acceptance of a
schedule of rates sufficient for the
maintenance and operation of the
railroads and a just return on the
value Of the railroad plant used by
the people.
Second, by the partial subsidiz-
ing of the railroad lines by the Gov
eminent, 80 as to make up any de-
ficiency.
Third, by complete government
ownership and operation.
I'm the long run the people will
get cheaper and better transporta-
ton by the first plan than either OF
the others.
"Since the American people have
by congressional enactment declared
they desire private ownership and
operation, with government regula-
ton, with protection and encourage
ment, they should permit the roads
to obtain earnings enough to meet
all obligations. and have a credit
substantially as good as that en-
joyed by other forms Of industry
into which people put their brains,
time, money and energy.
Stability Chief Need.
"Of all things, the American peo-
pie want stability in railroad policy.
They do not want Government con-
troll one year and private ownership
the next. After many years OF
careful consideration, Congress
passed a bill designed to solve some
of the railroad problems. Let's try
out that plan before we adopt any
radical departures from 1t.
THE railroad men Of America
are not asleep at the switch. They
are the servants of the people and
are working earnestly and intelli'
gently in the public interest. They
have had ample experience in try
ing to get the most out of dollar
LET them work steadily for the
promotion Of the service they are
called upon to render, instead of
being compelled to spend so large
portion of their time in commit
tee meetings and hearings, and they
will give a good account of them
selves"
Dissatisfaction Evident.
That there is a determined dissat-
isfaction with the manner in which
the public is not being properly
served by the railways is shown by
the vast number of regulatory bills
introduced in the last session of
Congress, more than 100 in all haV.
ing been offered.
If the transportation act cannot
be worked out by railway managers
to give satisfaction to the public,
stockholders and employees, then
Government operation must be seri'
ously considered. Government oper.
alton Of the railways never has
been given a thorough trial. And
IL some plan should later be pre-
scented for Government ownership,
| 1t would be the signal for immedi-
ate purchase by anyone with spare
cash of railway bonds and stocks
for Government ownership would
guarantee their value. There is no
! reason why the Government could
not operate the railways as eff
GENTLY as it does the postoffice.
Operating Expenses Cut.
Since the return Of the roads tc
| private management they have re
duced operating expenses by over
a billion dollars a year, of which
one-third has come from reduced
| wages and the balance from econo,
| mics in operation. But even with
these economies, the roads have
failed to measure up to the require.
ments OF the transportation act.
Private ownership of railroads
must meet the most rigid test that
has ever been imposed upon it, If it
is to survive the broadsides of the
advocates of Government owner.
ship in the next Congress. It has
distinct advantage in being per.
mitted to present it's case to the
American people in the next seven
months of unexampled prosperity
Private ownership must make the
grade" or be shunted on the siding.