The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1935-12-19
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tons actually are and without consid-
ering what the ultimate effect would be.
1t seems worth while TO consider an
other national problem which. though
of an economic nature and less sensa-
tional in its outward appearance. Is
nevertheless very real This problem
concerns our transportation system
Shortly after President Roosevelt
took office we were deluged with argu-
ment that amounted TO propaganda IA
voring government ownership Of the
railroads. There was a reaction
against this idea The reaction was
so strong that few politicians dared
to unloose their demagogery in favor
of government ownership. Yet, il is
perfectly evident that those who favor
perpetuating private enterprise which
is always more efficient and less waste
full than any government are in dan
ger of being lulled TO sleep. Crack
pots and misguided theorists in great
numbers still favor government own
ership of the railroads. They are still
working. The government ownership
problem is not dead. II is only con-
cealed from the eyes Of most Of Us for
the time being.
Certain developments OF the past sew
eral months confirm the statement
have just made. Taken singly. these
developments appear Insignificant
Collectively, they are very important
have heard it charged that govern
ment ownership advocates have a we'll
laid plan TO wreck private ownership
in the rail industry. This charge goes
further. 1t asserts that those who seek
TO destroy our profit system are pro-
ceeding. piecemeal, to load a burden
of charges upon the railroads so that
in the end it will be a physical impOs-
sibility for the railroad corporations
TO earn a profit. Indeed, IL is alleged
that the scheme contemplates eventual
burdening of the rail lines TO the ex-
tent where they cannot make their ex-
penses.
Obviously, if that end were attained.
bankruptcy would follow Then. there
would be no alIerna-
Means tive but legislative
Bankruptcy action placing the
railroads in govern
ment ownership. Our wartime expert
ence ought 10 be sufficient TO demon
strate how the costs mount when the
government operates the railroads Il
means more taxes on every one Of Us
who has income whether it be large or
small.
But to get back TO the developments
mentioned earlier. Whether there ex-
lists an actual plan TO drive the rail-
roads into bankruptcy or not. the de-
velopments certainly are subject 20
that surmise One of the items OF ex-
pense, a new burden of cost that IS
proposed TO be loaded on the railroads.
is the rail pension law. / have seen
some statistical calculations which
were convincing 10 me ar least that
the charges proposed TO be levied upon
the railroads by the law will not work
out in the manner their proponents
claim. The bill would assess each
rail corporation 81 per cent Of its pay
roll and each worker would contribute
a proportionate amount of his salary
toward his pension when he retires.
Like the Townsend plan. no enc can
argue against the fine spirit actuatfn.
a move TO protect the retired workers.
But to go behind the figures az the
start one finds certain astonishing
facts. Almost any way, almost any
method, one uses to calculate this cost.
forces the conclusion that after eishr
or ten years the pension system viii
have expanded TO such an extent that
the railroads will be carrying an an
nual charge on their payroll OF not 81
per cent but approximately Is per
cent. l think il goes without saving
that no industry can bear such a tax
as that and continue to operate
In addition TO the pension PROPOSE
ton, labor unions. aided By their CATS
paws in congress have kept up steady
machine gun fire. demanding first one
thing and then another from the car
riers. For instance, one of the current
demands-and it is likely 20 succeed
in some FORMS the movement for
shorter hours for practically the en-
tire list of railroad employees. OF
course, the railroads cannot Justify
working their employees longer than
eight hours except in an emergency.
Ii is possible that a seven-hour dav
might be practiced. But even seven
hour day would mean that the rail-
roads must add to their operating
costs. and any item added TO operating
costs reduces the chance of the cor
porations for an even break between
income and outgo
There are number of other such
demands or movements under way or
in the offing. Each one means a new
burden, new tax on the railroads.
This would not be so bad in itself bur
the effect comes back 10 all of Us. Tn
less the carriers are able to earn their
expenses they cannot give the service
required by a nation such as ours.
When railroad service suffers every
form of business suffers in conse-
quence, and that goes as much for
agriculture as for the most densely
| populated industrial area.
Railroad corporations have many
skeletons in their closets which they
cannot explain nor justify They have
shortcomings. many of them yet But
| the point is that we must have traIs-
portation. The people need the rail-
roads as badly as the railroads need
| the people. If there are evils. they
4 ought to he corrected bur believe th<.