Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1932-04-28
THE SITUATION
OF RAILROADS

Editor Fay CravenS in his Mile
Laos County Times discusses the
railroad situation of today and the
past. bringing out why there has
been change in sentiment toward
public ownership of railroads on the
part of railroad magnates. He con-
cludeS his article by saying that If
the government ever takes over the
railroads it should be at their ac-
tual values. Editor CravenS' article
follows:
When the railroads were making
big money in spite of their watered
stock and paying huge dividends to
the owners. the big railroad magnates
were unitedly opposed to any sug-
gestiOn of government ownership.
They and their supporters dealt long
and wisely on how much better and
more efficient private ownership is
than government ownership would be,
although all of the large countries of
the world except the United States
and China had successful government
ownership of railroads.
During the tremendous crisis of the
world war private ownership of rail
roads failed to function enough to
handle the situation so a government
administration hostile to government
ownership took over the railroads
temporarily in order to win the war.
The management of the railroads
under such circumstances became a
scandal and disgrace to the nation
because of the intentional wasteful op-
Grafton done on purpose to discredit
public ownership.
But now that conditions have
changed and the big profits to private
ownership on the vastly inflated and
watered stock is no longer possible,
a change is becoming noticeable in
regard to public ownership among the
railroad magnateS. An eastern pres
ident of a big railroad system, came
out in an interview last week sug-
costing that public ownership appears
to be the only solution of the present
difficulties of the railroads The fact
seems to be that the railroads can no
longer charge rates high enough to
pay dividends on their over-capital-
lied watered stock without throwing
the remainder of their business to the
automobiles, buSseS and trucks. The
scheme of making big money by is
suing a lot of watered stock on over
valuations of railroad properties has
longer work out The people have
found way of getting out from
under the load
We believe that the railroads of
the country could have met all COM
petition successfully had they been
properly managed and financed only
at their actual valuation. But in their
palmy days they made no effort to
give real service. They limited their
trains to their own convenience and
assumed sort of public be damned"
attitude. They declined even to adj
yertise the time of their trains, or ad-
vertise any of their activities, evident
to come to them anyhow. Convenient
excursion trains were practically ban
ned because they evidently felt that
no extra effort was necessary to get
the business.
But change suddenly came while
they were doing at the switch
People found other means of trans
pOrtatiOn. The railroad magnates
loftily ignored the new changes. re-
fusing to believe that they could lose
a lot of their business. When they
did discover that they were losing
business they Immediately proceeded
to put into effect policies that were
sure to add to their further loss of
business. They began to take off
trains, cut down service and raise
rates.
II they had done just the opposite
the story might have been different.
II they had increased the service,
made il more convenient and at a
little lower rate the motor transpor-
tation idea would not have got much
Of footing People much prefer to
ride on fast, smooth riding trains
than on buses. But when the train
is run at the convenience of the rail
road instead of the public, the public
will take the more convenient method.
Government ownership of the rail-
roads now would be a buck-passing
game on the part of the railroad mag
mates. If the government ever takes
them over it should be only at the
actual value of reproducing their
physical properties.
When you read the American you