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Could the Government Own and Manage the Railroads?
Those who oppose Government ownership used to say with
a satisfied smile: ‘‘The Government is not able to manage im
portant undertakings. GREAT undertakings require the great
American business man. He does not condescend to go into Gov.
ernment employ. Inferior Ctovernmment employees can not man
age big things.’’
They do not say that quite as cheerfully as they used to, now
that the parcel post has made thirty millions of profits in the first
year AND COMPELLED THE LARGE INTELLECTUAL
AMERICAN BUSINESS MEN TO REDUCE THEIR EXPRESS
RATES BY ALMOST FIFTY PER CENT.
The postoffice that carries a letter to Hawaii or London or
on dog sled to the outposts in Alaska for two cents can scarcely
be declared incapable.
Now that it does with parcels what it had done with letters,
giving better service, quicker service, infinitely cheaper service,
the placid critics of Government ability are troubled.
They are troubled particularly about the railroads. But
they still persist that the railroad system is too complicated, too
difficult, for managemeut by the Government.
The fight against. Government owmership of railroads is
carried on, first, by those who don't know what they are dis
cussing.
. Second, by the owners of railroads who have made money
out of dividends, money out of wrecking roads, money out of
rebates for special customers, money out of everything except
GIVING THE BEST POSSIBLE SERVICE TO THE PUBLIC.
And opponents of Government railroad ownership also un
fortunately are the railroad employees.
They imagine in some vague way that they would be in.
jured by Government ownership, whereas in reality they would
be better paid, they would have better hours, they would be se
cure in their employment under civil service.
On the New York Central ‘‘Twentieth Century'’ express—
an admirably managed train, which would be duplicated a hun
dred times over under Government ownership, by the way—
there traveled the other day a man who does millions of business
a year with the railroads. He probably does business a little
more advantageously than his small competitors. And he asked
this question:
“If you favor Government ownership, mention ONE single thing
imn wahic‘l; "the Government could manage this road better than it is
anaged.
This was the answer he got, made on behalf of the readers
of this newspaper:
“The New York Central Railroad and the other railroads com
plained bitterly about the recent increase in wages on the railroads
of the East .
“The ivrcroasg amounted to six millions a year for ALL of the
Eastern railroads, the New York Central and the others. And the
managers of all of the railroads complained that that was a horrible
tax—-glx MILLIONS in a year.
“They could not bear it, and the people must not expect good
service with low freight and passenger rates if they added six mil.
lions at a time to the cost of wages on the railroads of the East.
“You railroad men and owners make a great fuss about an in-
i o g THE g |
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w \| y” CAN SIR ORGIAN
R-SAU Ny 5 e l
The Season’s School Supplies
crease of six millions a year for LABOR—for money spent for the
good of the nation on tens of thousands of families of working men.
But the New York Central system alone carries a debt of at
least three hundred millions, upon which it must pay, with the va
rious note-shaving, money-lending schemes of Wall Street, at least
6 per cent a year.
“Therefore, this one single railroad—the New York Central—
pays eighteen millions a year on a debt of three hundred millicns.
“The Government of the United States, issuing Government
owned railroad bonds GUARANTEED BY THE GOVERNMENT,
could borrow the three hundred millions FOR THREE PER CENT,
“Therefore, if the Government of the United States owned this
New York Central Railroad, that railrcad’s three hundred millions
of debts, handled with so much difficulty at 6 per cent interest,
would be carried by the Government for 3 per cent interest.
“AND ON THAT ONE ITEM THE GOVERNMENT WOULD
SAVE NINE MILLION DOLLARS A YEAR—BY PAYING THREE
PER CENT FOR THE MONEY INSTEAD OF SIX."
You ask what the Government could do in the management
of railroads better than private individuals do it—there is your
answer. :
The Government could save nine million dollars a year on
the interest charges of one single railroad. And that would pay
ALL THE SIX MILLIONS INCREASE OF WAGES AND
LEAVE THREE MILLIONS OVER.
And what the Government could do with the New York
Central it could do with the other railroads. It could take them
out of the hands of the money-lenders, the sharks, the note
shavers, THE SO-CALLED HIGHLY RESPECTABLE BANK
ERS that rob every railroad all the year round through usury,
and that occasionally treat the New Haven as the Pierpont Mor
gan firm did, ruining the stockholders and wrecking the road.
The man who asks how the Government of the United States
could possibly manage the railroads better than they are man
aged now between speculating presidents and thievish bankers
might just as well ask how the Government of the United States
could manage some other business better than a gang of burglars
could manage it.
The Government in time WILL manage the railroads and
own them. For they are the real ROADS of the country. Na
tions have always owned their own roads.
Occasionally highwaymen, cailed barons or lords of the
manor, have stood here and there taking toll from the merchant.
And to-day on our big national roads similar highwaymen, rail
road barons and financial sharks, stand taking toll. But that
isn't going to last forever.
The time will be here soon when the Government will run
the nation's roads, giving the best service, borrowing money
with the nation’s unlimited credit at a low rate of interest, giv
ing the benefit of the low rate of interest first to the public who
travel, then to the merchants who ship their goods, then to the
workingmen employed.
If private individuals owned the postoffice, it would cost
25 cents to send a letter to Chicago, and $5 to send one to Alaska.
What the Government has done for letters and for parcels
it will do for the carrying of passengers and freight. :
Let the railroad men remember that, Lo
Week Ending
Mar. 24, 1914.