Show RAILROAD PROBLEM mm QUESTION OF STUBBORN OF THEORY mcadoo favors a five year test period in which to prove which chic h Is better government ownership or private ownership wisely regulated under superior authority of federal government by W 0 MADOO the railroad problem Is today one of the most if not the most important and vital domestic questions f facing acing the american people our welfare and prosperity depend on its proper solution therefore it Is peculiarly necessary that the facts regarding it be understood clearly that it be settled not along partisan political russ lines nor la in deference jo the prejudices of any class that the american people face the issue boldly and dispose of it as ag courageously as they have always done with every basic problem they have had to meet let me say immediately that I 1 have no pet theory to advance in discussing the settlement of the railroad question A the present time I 1 am an advocate nor an opponent of government ownership but while my tendency Is against government ownership and sn in favor of a wisely regulated private ownership under strong federal control I 1 am frank to say that I 1 am not afraid of government ownership should experience gained by an adequate test prove that it Is the best solution of the problem we are living in a new day in america tho the world Is throwing off old shackles we must do what seems best in view of ascertained facts regardless of preconceptions I 1 favor a five year test period because I 1 believe its results will tell us convincingly which Is better government ownership or private ownership ers hip wisely and adequately regulated under the superior authority of the federal government overn ment cacia cacia attention to problem the recent suggestion I 1 made to the congress for such sich a test under pence peace conditions has at least served to concentrate cen attention lon on the problem many of the attacks on the plan plain ly have been dictated hy by selfish interests others just as plainly are due to misunderstanding the suggestion most generally advanced by the opposition Is that the roads be continued under government operation for the twenty one months period after the war as provided by the present federal control act and that during that time remedial I 1 legislation there la Is an utter lack of agreement on the details of such legislation be enacted to return the roads to their private owners there are two reasons why such a course seems to me impossible first the roads cannot be operated su successfully under the present act tor for twenty one months with the prospect of thir return to their owners at the end of that time approaching nearer every day and second no adequate and fair remedial legislation can be obtained within that time in view of th the e political situation and the lack of crystallization liza ilza tion of the thought of the nation as to what Is the best permanent solution in discussing these two points I 1 must be frank for the american people are entitled to frankness this Is their problem and they are going to settle it sooner or later whether certain interests want them to or not the most serious obstacle to going on oa knitli the present system of federal control under tinder existing limitations while the congress tries to wor work k out remedial legislation Is that of morale somo some purposely blind people appear to think this an idle argument put forward to bolster up a plan they do not know the situ situation atlOn no man can serve two masters 1 face stubborn fact the railroad officials and employees of the united states are only human it they see the en end a of federal control rapidly approaching with their positions and their future the constant subject of partisan political controversy and with an entirely different system of control which will vitally affect each individual employee about to go in effect they naturally chenot work with undivided thought thou glit and a at t the highest point of efti efficiency clenCY they will be thinking inevitably of the interests of the private owners whose employees they will soon become and they will pay less and less attention to the government officials operating the roads where the interests 0 of f the private owners and of the government clash as they unavoidably will in many cases employees will hesitate which interest to serve contusion confusion and lack of effi efficiency clency are arc bound to result this is not theory this is a stubborn fact that must be faced already signs of tho the difficulty are beginning to appear with other forms of ind industry tills might not be so serious b but ut the prosperity and even the liv lives C s of millions of americans depend upon the discipline and efficiency of the american railroad machine it would be a dangerous experiment truly to play with such un an organism merely for tear fear of a bugaboo or for partisan political purpose or advantage then too were the effort made to continue the present control under existing legi legislation the railroads from standpoint might stand still I 1 a I 1 physical or even deteriorate during the twenty one months period without the cooperation 0 pe ration of the railroad corporations I 1 it t Is difficult under the present law to improvements or to obtain carry forward needed equipment already many 0 the oie railroads are resisting purchases ot of necessary equipment tor fop their account many of the necess necessary ary improvements such as joint terminals while ot of great benefit to the public are not relished by some railroad corporations po rations for competitive and therefore selfish reasons such improvements would result in great economies without which it probably would be impossible to reduce passenger or freight rates during the twenty one months period it Is impossible to carry forward an adequate program of improvements and to demonstrate those operative economies which will cheapen transportation in a shorter period than five years must keep out of politic I 1 would prefer not to mention politics in connection with this problem because primarily it is an economic question but we must not be blind the american people have been discussing the railroads for generations almost every man in public life has gone on record on some phase of the subject in 1920 there will be a presidential election it Is idle to suppose that under such conditions it will be possible luring during this or the next congress to secure calm and deliberate consideration of the ultimate solution of the problem much less a fair and adequate permanent settlement this vital question must not be settled in the heat beat or passion of partisan politics it must be dealt with in the calm of an inter presidential dent al election some of the opponents of the suggested five year extension of federal control appear to do so on the ground that the operating revenues during the year 1918 will be insufficient to pay the rentals guaranteed to the owners they forget that most of the ahe wage increases granted to employees took effect january 1 1918 whereas the increased passenger and freight rates did not go into effect until six months later it if increased freight and passenger rates had gone into effect january 1 1918 at the same time as the wage increases there would have been no deficit they also forget that the government took over the roads when they were completely paralyzed and when the greatest congestion of traffic in their history was upon them it cost the millions of dollars to clear up the congestion and get the railroads running again efficiently they also forget that blizzard billiard followed blizzard and that it cost much money to overcome their effects effect ts they forget too that the price of col coal of steel and of other supplies was tar far above normal during the past year these added expenses all would have had to be met had the roads continued under private control and to pay tor for them rates would have hadbo be increased private operation the past year would have failed utterly and the deficit would have been greater perhaps than under government management economies can be effected under peace conditions and with a period of five years of federal control assured it should be possible to maintain existing wages and working conditions and to effect such economies that reductions in rates both passenger and freight ought to follow within a reasonable time unquestionably economies can be effected under unified control that cannot be practiced under diversified control already the extra charge of one halt half cent a mile for riding in sleeping cars imposed as a war measure has been removed and other restrictions enforced by the war ere are rapidly disappearing unfortunately some of the opposition to the proposed f five ive year extension Is based on dissatisfaction with service given the public during the war it Is argued that conditions have been bad although this Is not true it can be stated as a fact which cannot be successfully contradicted that service has been greatly improved under d e r federal control in spite of the tremendous demands that the war needs have imposed here again it Is forgotten apparently that the railroads were placed under government control for the purpose of winning the war against the german autocracy the first duty was as to move troops and war supplies I 1 have yet jet to hear bear a sound criticism of the manner in which that pressing war n need was met millions of soldiers were moved safely and expeditiously to the seaboard and from camp to camp foodstuffs munitions and other supplies were rushed to ships at express train speed the american railroads during the past year have functioned for the war purpose civilian travel and ordinary business while of necessity given see sec andary consideration have ha been cared for extraordinarily well vieu in the difficult circumstances but even in the conduct of ordinary business the record made by the railroads shines by comparison with the record of private control in previous years when considered from the standpoint of important traffic during the tall fall of 1018 there was practically no congestion anywhere and we ware were still nt at war remember the congestion on the railroads in the crop moving seasons of 1918 1916 and 1917 toward the end of iola 1910 conditions became so BO bad that the interstate cOm commerce mOrce commas slon sion made mada an investigation AS a result Commis commissioner commissio er mcchord hilleda filed a report in which he said that mills havo have shut down prices have advanced peri ashable articles of great value have been destroyed and hundreds of carloads of food products have been delayed in reaching their natural markets also that long delays in transit have been the rule rather than tle exception and the operations ot of established industrial activities have teen been uncertain and difficult became simple matter the accommodation of passengers la in pence peace times and the proper attention to the transportation of ordinary freight become a comparatively simple matter once the larger questions have been disposed of no practical lust just and experienced mark man can honestly argue that government operation per se has caused bad service already needed trains are being restored crowded conditions are being remedied rules made necessary by the war are being done away with I 1 touch on such questions briefly in order that there may be no be clouding of the issue by the injection of false premises no will result to the traveling or shipping public if by the extension of ottic the period of federal control the question merely is whether wise and well considered remedial legislation for the return of the roads to private control can be obtained under existing conditions within twenty one months and whether even if that were possible the roads could be operated successfully economically and satisfactorily pending the discussion by the congress and the country and especially with the 1920 presidential campaign approaching pro aching neither contingency being possible la in my judgment I 1 see no escape from the conclusion that the period of federal ral control must be extended for five years so that an adequate test of unified operation may be secured under peace pot not war conditions and necessary improvements to terminals and other facilities be made free from partisan political leaf influences or the railroads must be restored to control in the near future to take their chances under the old laws and conditions which governed them prior to the assumption of control by the government |