The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-05-25
A Page of History

The proposed petition of the eastern railroads for
rate increases involves profound economic issues that
can not be dismissed with wave of the hand,
whether we favor or oppose the proposition. 1t is
question which must be settled its merits, here
and now.
Yet, little American history may throw light on
the present railroad crisis and related aspects of
American industrial and financial chaos. American
railroads are more efficiently and honestly conducted
today than at any earlier period. But the best of
them fairly unfairly paying the price of the
economic anarchy and piracy which characterized the
building and operation of the railroad system of the
United States.
Andrew jackson blocked public supervision of
early railroad development in the United States This
opened the door to unrestrained private enterprise
and exploitation. Hence, railroads conceived
and constructed on the basis Of economic adventure
and high inance rather than in harmony with sound
economics and efficient public service.
The dominating motive in building our railroads
was the hope of immediate profits from financing
operations letting the devil take care of the later
wreckage of the system Far too many railroads were
built and too little attention paid to the trans
portation needs of the communities.
Two or more roads often built where
was needed Cut throat competition resulted, that
at one time a person could go from New York to
Chicago for dollar.
In the haste make money, railroad stock was
iuggled and watered without stint Then these
nomicaly planned railroads expected to earn
dividends on colossal reservoirs of polluted water The
financial piracy of that day makes the literature
about the Spanish Main seem tame.
One who doubts it can consult the biographies of
Gould, Fiske Drew, Cooke, Vanderbilt, Charles
Francis Adams famous Chapters of Erie" and the
works of Oberholtzer and others
tAa1 ~fk0
ways probably hndered economical readjustment of
railroad building and operation The wise thing would
have been to promote mergers and consultations,
while at the same time strengthening federal regua
ton to prevent abuses of monopostic service More
than generation late, this policy at last has been
adopted.
This page out of our economic and political history
not only details the mistakes of the past but con-
tains cogent suggestions for the future. Let the LA
btes and obstacles in the anarchic heritage of the
past be eliminated as effectively possible through
sensible planning for the future and adequate federal
regulation If this can not be done, then public
ownership probably is the only alternative
Still further. the sad and perhaps tragic, lesson
furnished by the historic experience Of American rail-
roads may be turned to the service of other indus
tries new enough to apply central planning and the
service motive to their future development.
The comparative results of ndivdualistic anarchy
and central planning IN railroad construction and
operation are well illustrated by the experience Of this
United States and Germany. We have long record
Of failures receiverships, bankruptcy and the like in
individual cases with highly precarous state Of the
whole transportation system today.
In Germany. in spite of the building Of many rail-
roads for strategic military purposes, the profits Of
the railroads have been the largest single Of
public revenue.
csntral planning Is not the only reason for the
latter state Of affairs, but it is Of the most i'm
portant factors involved.