The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1936-02-08
GOVERNMENT CONTROL OF
RAILROADS


Does the government want economy IN
TRANSFORMATION? asks The Railway Age;
and then the magazine answers the ques-
ton by showing that the governments pol
icy with the railroads is the policy OF say
ing one thing and doing another. ..
For example, only few days ago the
gentleman with the high-SOunding title,
"Co-ordinator of Transportation" Eastman,
who runs the countrys railroads under
government direction and manipulation,
announced that ne was going to order the
railroads in certain centers of the country
to combine terminals and make Othec
changes, which, it was proclaimed with a
great brOadSide of publicity, would ellmln-
ate operating wastes of fifty million dol
lars q year.
Reading about Mr.. Eastman's wonderful
plans for economizing in the operation OF
the railroads, the public was not aware
that the governments policies of railroad
operation for the past three years have IN
creased operating costs in the amount or
three hundred million dollars. That is just
six times the savings which Mr.. Eastman
has laboribuSly planned for the roads. Note
that we say planned-the savings have not
yet been effected, and may never be put
into operation, but there is no sort OF doubt
about. the three hundred millions-the
railroads are already paying that.
Continuing the discussion of government
MANAGEMENT of the roads The Railway Age
says:
"And why is there more need for coordination
of railroads than ever before? Because the gov
ernment's policy of increasingly subsidizing car
riers bv air, highway and waterway like a drunken
sailor without trying to manage them, or even reg
ulating them as it does the railroads, is rapidly IN
creasing the duplication of all transportation fac-
lites and services, with the effects of tending to
divert more and traffic from the railways and
to force them to increase their investment and
operating expenses and reduce their rates to meet
outside competition. The government has the et-
frontery to hold the railroads up to the public as
MASTERS because of Implications of their facilities
and service the cost of which is not spit III the
ocean compared with the transportation wastes be-
ing caused by its own reckless and diotic expcnd-
lures.
In issuing his orders the co-ordinator will be
merely carrying out the Emergency Transportation
Act creating his position; but vitality important
fact that needs to be emphasized now is, that they
will be an attempt to begin government manage
ment of the railroads 1t is true. they will be an
attempt at only partial management; but il Con-
gress give the co-ordinator the power to issue
and enforce these orders it can, by passing add-
tional similar legislation, give him complete power
of management without any, responsibility what
thnr of ra
public for results
THE assumption upon which the Emergency Act
is based is that their is competition between the
railways which causes excessive costs OF tranSp0i-
tation that tn the public interest must be reduced
by governmf ntal coercion. This ignores the 1aco
that private management without government coef-
cion, reduced railway operating expenses from
$4,604, 100000 in 1921 to S2,575OO0,00O IN 1885,
or So per cent--or by an annual amount 40 times
as large the co-ordinator estimates would be
saved by allf terminal indications small and large
that he coreludes are desirable.
"The business interests of the country may well
take the railroad example as the most powerful pos
sible argument against every form of government
interference with business Railway regulation
began merely with legislation to prevent unfair dis
ordinations in service and rates and commission
to enforce such legislation. Now, being dissatis-
fied-as it tTeH may be-with the effects on the
railways of all its regulating of them and subsdiz-
ing of their competitors, the government is attempt
ing, without reducing its regulation of the railways,
or its Substitution of their competitors to assume
irresponsible management of them. Railroad ex-
perience is showing that once it has begun regula
ton, there is no limit to the power that govern
ment will attempt to exercise over an industry, ex-
ceptfng "a limit set by public sentiment"
The railyoads have been. one. Of the foot
balls of politics for around thirty years, or