THE RAILROADS
The Railroads WHEN the war began the government found the railroad service inadequate to its needs. As the pressure of war commerce increased the service broke down almost completely. There came a...
...Railroad officials and managers who have been deprived of high salaries and stock jobbing grafts, together with their allied interests are already on the job to influence congressional action...
...The problem is simple enough so far as the government is concerned when Congress once makes up its mind to serve the public in this way...
...The great coal companies are favored by means of railroad service...
...Shall that include a return of the railroads to private control and operation or shall government ownership and operaiioi follow...
...On the other hand the great mass or people including all legitimate business not dependent on favoritism are vitally interested in government ownership...
...If, however, government eonferol continue* railroad rates may be largely reduced in the near ^uture...
...The Baying in nv1 terest charges alone will amount to a very great sura each year...
...The elevator combines have depended for their power upon railroad discrimination and on their terminal and line houses...
...All these great conbines and monopolies will be opposed to government ownership of railroads...
...There has been in the railroad service a wholly wn...
...By taking this step the government will deal the first effective blow to monopoly...
...Standard Oil kilied off its competitors by means of railroad discrimination and rebates...
...Huge issues of watered stocks and bonds sold far 1 elow par resulting in receiverships and bankruptcies...
...It is provided that it sh>Jl continue for eighteen months after the conclusion of war...
...They will be reinforced by the organs of special privilege among the press...
...There Las been multiplication of depots, yards, -wharves, docks, officers, offices, paralleling of tracks and of rights of Way which has proved ruinous...
...It is here now...
...The railroad managements claim that their failure came about by reason of inadequate rates before the war which had resulted in the roads being deteriorated and out of repair...
...necessary competition...
...The roads had never been equally prosperous in any like period during their history as in the ten years prior to the war outbreak...
...The people must be watchful and active if the public welfare is to, be served...
...The government <sm finance the operation by the simple expedient of Substituting its low Interest bearing bonds for the stocks and bonds of the railroads properly appraised, and pay the interest and principal out of the earnings at the properties taken over...
...Now is the accepted time to break the bonds of monopoly through government ownership o£ all means of transportation...
...It is the only way that honest business can be assured a fair field for its future...
...Conflict of jurisdiction of the various state authorities and the government commission had assumed aggravating proportions...
...What then...
...To accomplish this great task will require the active interest in the field, shop and mine of the voters to make publie sentiment to which Congress will respond...
...So government control had to come...
...There came a time when the railroad managements threw up their hands in despair and the government was forced to take over the operation of the railroads...
...The great mass of small business men, farmers and laborers are paying tribute to financial bu-caneers of Wall street...
...The packing combine known as the "Big i'ive" has secured a strangle hold on food production and control by reason of private refrigerator cars and terminal discriminations...
...Immediately the government should be prepared vwith its program for the future...
...There can be no doubt but a uaified system and control of operations will result in hundreds of millions of dollars in saving each year...
...Organize and agitate for government ownership should be the watchword...
...Owing to increased coat of maintenance and operation during the war, to necessary repairs and to guarantee dividends the government had to largely increase raijroad rates...
...But the roads had been badly managed and the revenues squandered...
...That is the question properly to come before Conpress...
...Nearly every great monopoly has heen built up by favoritism in public transportation...
...Through monopolies and combinations in every field, including banking, transportation, insurance and mining the Eastern financiers have throttled the business of the South and West...
...This was manifestly untrue...
...With it all came distrust of the public as to the honesty and efficiency of the management which interfered with the financing of the roa i...
...The golden opportunity is at hand for the government to unify all means of transportation including railroads, express companies, telegraph and telephone companies under government ownership...
Vol. 10 • November 1918 • No. 11
