Show RAILROAD PROBLEM QUESTION OF S STUBBORN OF THEORY McAdoo Favors a Year Five-Year Test Period in Which to Prove Which Is Better Government Ownership or Private Ownership Wisely Regulated Under Superior Authority of Federal G Government V fn nt S S 1 f By W. W G. G MADOO The railroad problem Is today one ono of the most If not the most Important tant taut and vital dom domestic questions facing the American people Our welfare and prosperity depend on its proper solution Therefore it is peculiarly necessary that the facts facts facts' regarding it be understood clearly that it be settled set set- tIed not along partisan political lines nor in Ia deference to the prejudices of any class that the American people face the issue boldly and dispose of It as courageously as they have always done with every basic problem they have had to meet Let me say Immediately that I have no pet theory theory- to o advance In discussing the settlement of the railroad ques ques- tion A A A- Athe the present time I rani nfl airi neither neither- er an advocate nor an opponent of government government gov gov- el ownership But while my any tendency is against government ownership ownership own- own and in Ia favor of a wisely regulated regulated regu regu- private ownership under strong federal control I am urn frank to say that I am ain not pot afraid of government ownership owner owner- ship should experience gained by an adequate test prove that it is the best solution of the problem We are lIving living liv lIv- ing tog togIa In Ia a new d day y in America the vv world orld is s. s throwing ore off old shackles we do seems ems b best g in view v of ascertained s fact fac t regardless ar less of 9 preconception pre- pre conception J l. or ii d five year Vlear V lear year test period period because iise I b U J results will t tell us ts convincingly 0 cl w which J is better 5 e- e government ow own or or E private ownership own yI er v wisely isely and under the superior authority of f i th tha I f federal d ral government ll Calls Can Attention to Pro Problem lem S Th The recent suggestion I ma made 9 to the congress for such a test tes under pence peace conditions has at least served to fo concentrate concentrate concentrate con con- attention on on the the problem Many of the attacks on the plan plainly plain plain- ly have b been en dictated h by selfish Interests Interests Interests In In- others just as plainly are due to misunderstanding The suggestion most generally advanced advanced ad nd- d by the opposition i hj Ij tb that the roads be continued under government operation for the one months' months period after the war as as s provided by bythe bythe the present federal act and that during that trine Une remedial medial legislation legislation legis legis- lation there ther is an utter J lack of agreement agreement agreement agree agree- ment on Oi tl the details of such legislation legislation legisla legisla- tion be enacted to return the roads road to th tb thir ir lr private owners There are tw reasons why such a n course com seems seem l K t m me impossible first the thie roads roads' cannot t be operated success- success under tl a lite present act for twenty twenty- one ene months with the pro of th their thIr ir return n t to their owners owners' at the Ule end of that time approaching nearer everyday everyday every very day and second no adequate and arid tar fair remedial legislation caD can cu be obtained within that time In view of Or tb the political poUt poUt- ical situation and the la lack Zak k of f crystallization crystal crystal- of the thought of the nation las as to tv what Is th the best permanent so so- o lution In discussing these two points I must be frank for the iho American people pee peo pIe are entitled to frankness This Is their problem and they are going to settle ettle it sooner sooner or later Inter whether certain tain interests want vant them to or not mot The most serious obstacle to going on Son with the present system of ot federal control under existing limitations while the congress tries to work out remedial legislation Is that of morn morale Ie Some purposely bu blind d people appear to think this an Idle argument put forward forward for for- ward to bolster up P a plan pian They do donot donot donot not know the situation No man cnn can n serve two masters Face Stubborn Fact The railroad oll officials and employees of the United States are only human If they see the end of federal control S rapidly ly approaching with their positions positions and their future the constant subject ct of partisan political controversy controversy controversy contro contro- versy and with an entirely different system of control which will vitally affect each individual employee about to go in in effect they naturally ca canot not work with undivided ed thought and at atthe atthe the highest point of efficiency they will be thinking of the Interests interests interests in In- of the private owners whose employees they will s soon oon become and they will pay less and less attention to the government officials operating the roads Where the Intel interests of the private owners and of the tile government clash as they unavoidably will In Inmany Inmany inmany many cases employees ees will hesitate which Intel Interest est to serve Confusion and lack of efficiency are bound to result This Is not theory this Is a Ii stubborn fact that must be faced Already signs of the tile difficulty are beginning to appear With other forms of industry this might not be so serious but the prosperity and even the lives of millions mil mu lions of Americans depend upon the discipline and efficiency of the American Amen Ameri can railroad machine It would be a dangerous experiment truly to play with such an nn or organism merely for fear of a II bugaboo or for partisan political purpose or advantage S Th Then n too were the effort made to continue the present control under exIsting exIsting existing ex ex- ex- ex legislation the railroads from froma a physical standpoint might stand still or even ven deteriorate during the twenty- twenty one months' months period Without the cooperation cooperation co co- co- co operation of the railroad corporations It Is difficult under tM tho present law Jo to carry forward Improvements or or to n ob obtain ob- ob tam tain needed equipment Already many r. r i 3 rj o of o the railroads railroads' are resisting purchases purchases pur pur- chases of necessary equipment fop fOP their account Many of the necessary Improvements such as joint terminals while of great benefit to the public are arc not relished by some railroad corpor corporations cor or- or por for competitive and th therefore therefore there there- re- re fore fore selfish r reasons reasons Such Such Improvements Improve improve- ments meats would result In great economies economies economies mies which which it It probably would be Impossible to reduce passenger or freight rates rate dunn during the twenty one months 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 period pe pe- pe- pe nod than five years Must Must Keep Out of Politics I I I would prefer not to mention politics poll poli tics in connection with this problem bec because us primarily It Is Is is- isan an economic question But But- we must not be blind bUnd The American merican people h have ve been dis discussing dis cussing the railroads for generations I almost every man in public life has gone on record on some sem phase of the subject In 1 1020 there will be a presidential presidential election It is idle to suppose that under such conditions It will be possible during this or the next congress congress congress con con- gress to secure calm cairn and deliberate consideration of the ultimate solution of the problem much less a fair and adequate JEt JEts t s settlement J en e t. t This Vital l nf ho 2 W r vp v v ct M TT u tJ tile lj heat hea t jjr t passion passion passion- r r t J It lr must iu t be Jt With wi In Inthe th the calm aim j of an Inter rP presidential cle election J petted Some of t t the pp o of th the sugI suggested sug- sug sug I geste year five ext extension of federal control appear to do s so on the ground that the oper operating U g r revenues v d during the year 1918 will cill be insufficient to pay the rentals guaranteed to the owners They forget that most of the wage wag increases granted to employees took effect January 1 1918 whereas the Increased passenger and freight rates did not go effect until sir months later If Increased freight and passenger passenger pas paz rates had gone Into effect January Jim Jan uary 1 1918 1018 at the same sam time as the wage l Increases creases there would have been no deficit They also niso forget tha tile the government toot tool o over er th road roads road b hen they were completely paralyzed an and when the greatest co congestion of f tra traffic c cin In their history was upon th them II jilt It cost the government nent millions ef f d dars r. r lars ars to clear lea up op the congestion and avid g eft t the he railroads adS atts miming again e efficiently They also forget torget that rd followed blizzard and fiat liat it cost much I ni money ney to overcome their effects They fo foget forget forget for for- get 11 too 10 that the price iff coal of steel i t of pf other ether supplies supplieS' wa was far above I during daring the past year These Th J n added ded expenses all would have had to tobe tobe be be met bad the roads continued under private control and and to pay pa pay f for r th them m rites rates would have ad to b b be Increased i Private operation the tile past year Would 1 halVe hase failed utterly and the deficit would have been greater perhaps than under government management Economies Can Be Effected Under peace Conditions and with a a period of five years of federal control a assured It should be possible to maintain main main- tutu tain existing wages and working conditions condi condi- i and to effect such economies that reductions ns Jn in II rates both both passenger ger gor and freight ought td tO follow fonow within with with- in ina a n reasonable time tl e. e Unquestionably economies can ibe be DC effected under unified uni uni- fie fled fied l control that cannot be practiced under diversified control Already the extra extraS charge of one-half one cent a mile mUe for tor for riding In s1 sleeping cars Imposed as asa a war var meas measure re has las been removed and other restrictions enforced by the war are rapidly disappearing Unfortunately some of the opposition then tion to the proposed five year five year extension exten exten- sion ioa is based on dissatisfaction with sith 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 cannot can cnn not be successfully contradicted that service has been greatly h Improved under under under un un- un- un der federal control In spite of the tremendous demands that the war I Ine needs ne ds 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 to move troops and war supplies I have yet to hear a n sound criticism of the of-the the manner In which that pressing war need was met Millions of soldiers were moved safely and expeditiously ex ex- ex- ex to the seaboard and from camp to camp Foo Foodstuffs stuffs s sand and other supplies were rushed to ships at express train express train speed The Thc American railroads during the pas y year vear nr have hae functioned for the war pur jur pur pose post Civilian travel and business while of necessity given secondary secondary sec consideration haMe ha been cared for extraordinarily well In the cult circumstances But even In the conduct of ordinary business the record made by the railroads rail rail- railroads roads shi shines es by comparison with the record of private control In previous years when considered from the standpoint standpoint standpoint stand stand- point of Important traffic During the fall taU ot of of 1918 1918 1018 there was practically no congestion anywhere and and we were still at war Remember the congestion on the railroads In the crop moving crop moving seaSons sea sons of 1910 1016 and 1017 1917 Toward the end of 1016 1916 conditions became so bad that the Interstate commerce commer e cominis' cominis I Z i S S S'S i- i S 'S slon sion made an investigation As a r re re- re suit salt Commissioner McChord filed a report report report re re- re- re port In which he said aid that mills have shut down prices have advanced perishable perishable per- per articles of great value have been destroyed and hundreds of carloads car- car carloads loads oads of food products have been delayed de de- ayed in reaching their natural markets markets' mar mar- Also that long delays In transit transit tran fran sit have been the rule rather than the exception and the operations of established industrial activities have been uncertain and difficult Became Simple Matter The accommodation accommodation of passengers In peace times and the proper att attention at at- t to the transportation of ordinary ordinary ordinary nary freight become a comparatively ly simple matter once the larger questions questions questions ques ques- have been disposed of No practical pine pine- just and experienced man can honestly argue that government operation op per se has caused bad service Already needed trains are being restored restored re re- stored crowded conditions are being remedied rules made necessary b by bythe bythe the war are being done away with I touch on such questions briefly in inI order that there may be no beclouding I of the Issue by the Injection of false premises No will result to the he traveling or shipping public public pub pub- lic lie by the extension of th the period of ot federal control The question merely Is whether wise and well considered remedial legislation for the return of the the roads t to private control can be obtained under existing conditions within twenty twenty one one months months and whether er en er even if it that were possible the roads could be operated successfully econom economically cally and sat satisfactorily y pendIng pending pending pend- pend pend pend- ing the discussion by the congress congress- and anti the country and especially with the 1920 presidential campaign ap sip- Neither contingency being possible i Id my judgment I t se see sen n no no escape from I th the conclusion ion that the the period pf fec fed fed- ral control mut be ext extended ed l i i years so that an adequate test test of unified uni imi- fied fled operation may be e secured under t-i t fiot Qt lYP war an and necessary E sary Saty ith improvement t to fo t terminals and other facilities be e made fr free e from partisan p 1 J il influences n n e or orr tEe r rn roads i must i st be restored Ito private control In the near future to to taM their thelt c chances an es under the old laws and d conditions which governed them prior to the ps assumption of control by tko b t o government t r n |