Show RAILROAD PROBLEM QUESTION OF STUBBORN HOT OF THEORY McAdoo Favors a Five Year Five Year Test Period in Which to Prove Which Is Better Government Ownership or Private Ownership Wisely Regulated Under Superior Authority of Federal Government J By W. W Q G. MADOO Tho The railroad problem is today one of the most roost If It not the most Important important tant that and vital domestic questions facing the American people Our welfare and prosperity depend on Its proper solution Therefore it Is peculiarly necessary that the facts regarding it be understood cJ clearly that it be settled settled set set- tied not along partisan political lines nor in deference to the prejudices of any class that th the American pe people face the issue boldly and dispose of it as courageously as they have always done with every basic problem they have ha had 1 to meet Let me Inc say immediately that I havo no pet theory to n advance in discussing the settlement of the railroad ques ques- tion A A the present time I am utu neither an advocate nor an opponent of government government gov gov- ov- ov ownership But while my ten tendency ency is against government ownership ownership own own- and in favor faor of a wisely regulated regulated regu regu- private ownership under strong federal control I am frank frnnk to say that I am am not afraid of government ownership ownership ownership owner owner- ship should experience gained by an adequate test prove that it is the best solution of the problem We are living liv liv- ing lag in a new day in America the world Is throwing off of old shackles we must do what seems best In view of ascertained facts regardless of pre pre- conceptions I favor a year five test period because I b Its results result will tell us convincingly ly which which is better better- government ownership or private ownership ownership own own- wisely and adequately regulated under the superior authority of the federal government Calls Attention n to Problem The recent suggestion I ma made to the congress for such a test un under peace conditions has hns at nt least served to concentrate concentrate con con- attention on the thc problem Many of or the attacks on the plan plainly plain plain- ly have been dictated by selfish In Interests Interests interests In- In others j Just st as ns plainly are due to misunderstanding The suggestion most generally 0 advanced advanced ad ad- 1 b by the opposition is that the roads be continued under government operation for the twenty one months' months period after the war as ns provided by bythe bythe the present federal control act and that during that time remedial legislation legislation legislation legis legis- lation there is an utter utter lack of agreement agree agree- ment meat on the the- the details details of such such such-legisla lion tion be enacted to return the roads to their private owners There are two t reasons why such a course seems to me Impossible first the roads cannot be op operated rated successfully successfully success- success fully under the present act for twenty- twenty one months with time the pro prospect of th their lr return to th their lr owners at the en end 1 of that time approaching nearer every everyday everyday da day and second no a adequate and fair remedial legislation can be obtained 1 within that time In view of the political poUt poUt- ical cal situation and the lack of crystallization crystallization crystal crystal- of the thought of the nation is as to what Is time the best permanent so- so lution In discussing these two points I 1 must be frank for the American people peo peo- pIe are arc entitled to frankness This Is their problem and they are going to settle mettle It sooner or later Inter whether certain tam tain interests want them to or not The most serious obstacle to going on with the present s system stem of federal control under existing limitations while the congress tries to work out remedial legislation Is that of morale Some purposely blind bUnd people appear to think this an Idle argument put forward forward for tor- ward to bolster up upa U a a plan They do doDot donot donot not Dot know the situation No uNo man can e serve two masters Face Stubborn Fact The Tho railroad and employees tf Sr f the time United 1 States are only human If they see sec the end of federal control rapidly approaching with their positions positions lions and their future the tho constant subject of partisan political controversy controversy contro contro- versy and with an entirely ly different system of control which will vitally Affect each ench l Individual employee about to go in effect they naturally cannot work with undivided thought and at atthe atthe atthe the highest point of efficiency they will be thinking inevitably of lh the Interests interests interests in In- of the private owners whose they will viII soon become and arid they will pay less and less attention to the government officials operating the roa roads Where the interests of the private owners and of ot the e government clash dash as they unavoidably will Inmany in inmany inmany many cases employees will hesitate which Interest to serve Confusion Contusion un and 1 lack of ot efficiency are c t bound Jound to result This Is not theory this Is a stubborn fact tact that must be faced Already signs of the difficulty are beginning to appear With other forms of Industry this might not be so serious but the prosperity and even the lives lles of millions mil mU- lions Hons of Americans depend upon the discipline and efficiency of the American Ameri Amen can railroad 1 machine It would be a dangerous experiment truly to play with such an nn organism merely for tor fear of a bugaboo or for partisan political purpose or advantage Then too were the effort made to continue the present control under existing ex ex- hUng legislation the railroads from physical standpoint might stand stan 1 still stiller er cr r even deteriorate during the twenty- twenty one months' months period Without the c cooperation co cooperation r. r operation of ot the railroad corporations It Is 11 difficult lt under the present law to carry forward improvements or to obtain ob ob- tam tain needed equipment Already many manyI I of the tho railroads are resisting purchases purchases purchases pur pur- chases of necessary equipment for their account Many of ot the necessary improvements such as Joint terminals while of great benefit to the public are not relished by some railroad corporations corporations corporations cor cor- for tor competitive e and therefore therefore therefore there there- fore selfish reasons Such Improvements Improve ments would result In great grent economies economies ocono- ocono mies without which It probably would be impossible to reduce passenger or freight rates during the twenty-one twenty months months' period It Is Impossible to carry arry an adequate program of f improvements and to demonstrate those hose operative economies which will cheapen transportation In a shorter pe- pe nod lod than five fire years Must Keep Out of Politics I would pr prefer er not to mention poll poli- tics Ics in connection with this problem because primarily It Is an economic question But we must not be blind bUnd The Tue he American people have been discussIng discussing discussing dis dis- cussing the railroads for generations almost every man in public life has gone on record on some somo phase of the subject In 1920 1020 there will be a presidential 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 and nd deliberate consideration of the ultimate solution of the problem much less D a a. fair and adequate permanent settlement This vital question must not be settled In Inthe Inthe inthe the heat hent or r passion of 1 p partisan sa politics politics poli poll tics It must be dealt with in the calm of an i Int ini t- t e I t l S SOhie me of the opponents of oI 1 tile the suggested suggested sug- sug ested year five extension of f 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 wage Increases granted to employees took effect January 1 1 1918 whereas the time Increased passenger and freight ra rates tes did not go Into effect until six months later If increased freight and passenger passenger pas pas- rates had gone into effect January Jannary Jan Jan- nary uary 1 1918 at the same time time time-as ns the wage rage Increases there would have been no deficit They also forget that the government took over the roa roads when they were completely paralyzed and when the greatest congestion of traffic In iii their their history history was upon them It cost the government millions of ot dollars to clear up the congestion and get et the railroads running again efficiently They also ulso forget that blizzard bUzzard followed blizzard and that it cost much money t to overcome their effects They forget forget forget for for- get too that the time price of coal of steel and of other supplies was far above normal during the past year These added expenses all would have had bud to tobe tobe tobe be met had the time roads continued under private control and to pay for them rates would have ha had 1 to be Increased Private operation the past year ear would have bave failed utterly and the deficit would have been greater grenter perhaps than under government management Economies Can Be Effected Under peace pence conditions and with a period of five years of federal control assured it should 1 be possible to maintain main maln- tam tain existing wages an and 1 working conditions conditions condi conch and to effect such economies economics that re reductions in rates both passenger passenger passenger ger and freight ought to follow withIn within with with- l in a reasonable time Unquestionably economies can cnn be effected 1 under unified unified uni mini fied fled control that cannot be practiced under diversIfied control 1 Already the extra charge one-half one cent a mile for riding in sleeping cars imposed as af u It f war measure has been removed und and other restrictions enforced by the war are rapidly ly disappearing Unfortunately some of the opp opposition siHon si- si lion Hon to the tile proposed year five-year extension extensIon exten exten- sion slon Is based on dissatisfaction with service given the time public during the war It is argued 1 that con conditions have bet been n bad although this Is not true It can be stated as a n fact which cannot cannot can enn- not be successfully contradicted that service has been greatly Improved under under under un un- un- un der federal control In spite of the tremendous demands that the war ne needs neels cIs have imposed Here again it Is forgotten apparently that the railroads were placed under government control for the time purpose of winning the war against the German autocracy The first duty was to move troops and war wai supplies I have yet to hear a n soum sound criticism of the manner In which that pressing war need was met Millions were moved safely an and expeditiously ex- ex to the seaboard and from camp to camp Foodstuffs munitions and oth other r supplies were rushed to at express train speed The Th American railroads during the past year have functioned for tor the war pur pur- pose Civilian travel und and ordinary business while of sity given secondary secondary sec see consideration hAle lul been care cared for extraordinarily well In the difficult dUn dUn- cult circumstances But even In the Ute conduct of ordinary business the time record made by the rail rall- shines by comparison with the of private control in previous years when consI considered from the tho standpoint stand point of Important traffic During the Ute fall fail of ot 1918 there was practically no congestion anywhere and we were still at war Remember the congestion on the railroads In the moving crop seasons seasons seasons sea sea- sons of or 1916 1910 and 1017 1917 Toward the end of ot 1910 1016 conditions became so bad that the interstate commerce commis- commis L 1 lon slon made mado an Investigation As a result result re re- ro- ro sult suit filed flIed a n report re- re port ort In which ho said sold that mills have shut hut down prices have havo advanced perishable per per- articles of great value have been destroyed and hundreds of ot carloads carloads car- car loads oads of food products have been delayed de- de In ayed ed In reaching their natural mar mar- Also that long hong delays s 's In transit transit tran tran- sit It have hn been the tho rule rather than the he exception and the tho operations of ot established Industrial activities have been u uncertain and difficult Became Simple Matter The accommodation of passengers In n peace penco times and the proper attention nt- nt to the transportation of ordinary ordinary ordinary nary freight become a comparatively simple matter once the larger questIons questions questions ques ques- have been disposed of No practical Ical just and experienced man can honestly argue that government operation operation operation op op- op- op per se has caused bad service Alrea Already needed trains are being restored restored restored re re- re- re stored crowded conditions are being remedied rules made necessary bythe bytho by he tho war var are being done away with I touch on such questions briefly In order that there may be no beclouding of the Issue by the injection of false premises No will result to the traveling or shipping public pub pub- lie lic by the time extension of the period perlo 1 of ot federal control contro The Tue question merely is whether wise and well considered remedial legislation for the return of the time roads to private control can be obtained under existing conditions within twenty one months and whether er even cven If that were possible the roads could be operated successfully economically and satisfactorily pending pend ing the discussion by the congress anti and the tIme country and especially with the 1920 presidential campaign ap Neither contingency being possible in my Judgment I see no escape from the conclusion that the period of federal federal fed fed- eral control must be extended for tor five fi years ears so that an a adequate test of unified uni uni- uni fic fled fied 1 operation may be secured under peace not war conditions and necessary necessary sary Improvements to terminals and other facilities be made free from partisan political influences or the railroads must f t oe restored t to private control in the near future to take their chances under the time old laws and conditions which governed th them timm m prior to time the assumption of control by the tho government MEDILL I I I f Mrs Medill McCormick wife of the Illinois senator elect is chairman of ot the Republican womans woman's national committee an organization which will wUl operate co-operate with the tho Republican national na na- committee The womans woman's organization organ organ- has hns opened handsome offices in InS ina a S fashionable section In Washington and Mrs McCormick spends a n large part of her time there This Is a new photograph Mrs McCormick Is a laughter of the into lAto Mark Hanna Henna I |