CHAPTER III

THE UNITED STATES RAILROAD ADMINISTRATION (CONTINUED)

I bear no brief for Mr. McAdoo. On the contrary I have been one of his

most persistent, although, I trust, consistent, critics. In the columns of

the "Saturday Evening Post" and other widely circulated publications I

have tried to set down fairly, impartially, and thoroughly both the

accomplishment and the shortcomings of that remarkable organization, the

United States Railroad Administration. And with this final chapter written

I shall close for myself, I hope forever, the recital of its history.

It is but fair to say that even though McAdoo's great economies of

operation through radical consolidation and reroutings were obvious, it

took courage, none the less, to put many of them into effect. Tradition,

the sentiment built up through long years of hot competitive practice,

local pride and local spirit here and there and everywhere, had to be met

and overcome successfully, even though the war-time issue was to come into

the reckoning. McAdoo has never been known for lack of courage. He reached

out here and he reached out there and generally he attained his desires.

"You talk about Fairfax Harrison. Of all the men in authority in

Washington, it was McAdoo who really played the lone hand." So speaks a

man who from the very beginning of the war overseas made a careful study

of the Administration and its human components. He speaks the truth--and

does not.

"The trouble with McAdoo," says a radical who is immensely interested in

the entire railroad situation, "was that he was in the hands of the old

railroad gang and controlled body and soul by them."

He also speaks the truth, and does not. I presume that we may translate

the "old railroad gang" into the group of experienced and very able and

honest railroad executives that the first director-general gathered about

him, and who without exception rendered him efficient service. Mr. McAdoo

himself says this. And he ought to know.

In the preceding chapter we saw some of the sweeping changes and economies

that were wrought in the freight operation of the railroads under

governmental control; the passenger ones were even more dramatic. We have

already seen how at a fell swoop the excellent service between New York

and Washington was smashed almost into smithereens, and how the good

horse-sense of the first director-general came to the rescue then and

there and restored a service that would enable men to travel back and

forth between these cities on their war-time errands in a degree of

comfort sufficient at least to render them best able to carry on their

press of unusual duties. Other services were not so restored. The Broadway

Limited, the crack twenty-hour train of Mr. Rea's Pennsylvania railroad,

was an early sacrifice. In May, 1918, Mr. McAdoo approved of a sweeping

economy in the western portion of the country, the territory west of

Chicago and St. Louis. In this great slash alone estimated yearly savings

of 11,728,000 passenger train-miles were made. These savings were

accomplished chiefly by abandoning duplicate and expensive fast train

services (please also note this for future reference) between Chicago and

the Pacific coast cities and assigning, supposedly to the shortest and

most direct route in each case, the fastest through service. Under this

scheme the Santa Fe became the preferred route between Chicago and Los

Angeles; the quite logical grouping of Chicago and Northwestern, Union

Pacific, and the former Central Pacific division of the Southern Pacific,

from Chicago to San Francisco; the Burlington and the Northern Pacific to

Portland, and the Milwaukee to Seattle.

These selections were made arbitrarily. They cost many heartaches,

however. The Rock Island--the shortest route between Chicago and the

important railroad gateway of El Paso, and but thirty-five miles longer

between Chicago and Los Angeles--watched the decapitation of the Golden

State Limited, which it had worked so hard to upbuild, with feelings of

great bitterness and regret. It felt down in the bottom of its heart that

it had been discriminated against. When peace came again--if ever it

should come again--and the railroads were restored to their private

operators--if they ever were to be restored again--the Golden State

Limited would have to start once again at the very bottom of the ladder.

The most notable consolidations of passenger service under the government

administration came, however, in the central portions of the land. In the

district about Chicago under private and competitive control there was

(and to-day is once again) a great waste of through passenger-train

service. With six competing railroads from Chicago to the Twin Cities, six

to Omaha, six to Kansas City, four to St. Louis, and three to Cincinnati,

and with almost every one of these roads trying to maintain a service as

good as its competitors, if not better, there was and is a vast

preponderance of through passenger-trains, many times to the cost of

weaker or branch lines, even of well-to-do-systems. It is not at all

uncommon for a branch line, particularly if it passes through a

non-competitive district, to be paying with its all-too-few and

overcrowded local trains for the extravagances of the underfilled through

ones upon the main line. The little wheezy locomotive and the two

forty-year-old battered day-coaches of the down local to Willettsburg or

Sand Corners was and still is the upkeep of the lordly limited all-Pullman

and aristocratic from the point of its crack new locomotive to the far tip

of its brass-railed observation-platform. Do not forget that. And also do

not forget that a good proportion of the voting population of any State

lives upon the branch lines, which may have accounted in the past for some

pretty radical railroad legislation and regulation. Here is a point that

the average railroad operator, with his nose close down to freight

ton-miles, may overlook. He may have and frankly express a contempt for

the passenger service but it is at all times the chief point of actual

contact between the railroad and its patrons.

* * * * *

Moreover from Chicago to the group of cities a night's ride distant from

it in several directions the plethora of superb trains moved in

competitive squadrons. By that I mean, even though there were on four

railroads between that city and St. Louis before the coming of the war

fifteen fast through trains in each direction, there were to all practical

purposes but three or four. For competition so bunched the trains that

there was an important group of through expresses leaving Chicago at noon

and another important group at midnight, with two or three less important

slower expresses at nine in the morning and again at nine in the evening.

An intelligent centralized management would seemingly have found it

possible so to distribute fifteen through trains that there would have

been a through train from Chicago to St. Louis--or the reverse--almost

each workaday hour. The through service between New York and Washington

and between New York and Boston is so distributed.

Even under centralized control, however, such an even distribution of

passenger-trains between midland cities of the United States is not

entirely possible. For even in the case which we have before us, there are

important connections to be reckoned with, both at Chicago and at St.

Louis. These trains must be met, and if the best through passenger-trains

for the Southwest leave the St. Louis Union Station at about nine o'clock

in the evening, the resident of Decatur, which is on the main line of the

Wabash, and of Springfield, which is on the main line of the Chicago and

Alton, should in all fairness have an equal chance at them.

Yet, despite this hindering factor, the McAdoo centralized authority

succeeded in cutting the fifteen through trains in each direction down to

nine and in slightly spreading the leaving times. The result apparently

worked little hardship to the through traveler of war-time days between

Chicago and St. Louis. The train on which he rode might be a little longer

and a little better filled than usual, but its running-time and its

equipment, save for the probable elimination of the observation-car, were

virtually unchanged. And 15,706 train-miles and 9,538 tons of coal were

being saved in Chicago-St. Louis passenger service each month.

But how about Monticello?

Monticello, Illinois, is not a big town, as big towns go. Yet it is an

enterprising county-seat of some 2,000 people situated on the Chicago-St.

Louis main line of the Wabash just a few miles north of Decatur. And it

has definite rights. Do not forget that. In the old days of ante-bellum

private control--sin-filled and really wasteful competitive control--there

were four through trains and two locals through Monticello in each

direction each day. And the Monticello banker or merchant who wanted to

run down to St. Louis and come back at night had an easy affair of it. But

with the government train consolidation he could get up in the middle of

the night and catch the 2:30 train south or else wait for the next express

at 4:05 in the afternoon. The Government was not particularly worried

about him.

Let me repeat. Monticello has definite rights to adequate railroad

transportation. And this holds true whether that transportation comes from

the Government or the individual. Monticello--ten thousand Monticellos, if

you please--has a considerable voting population. And once the real war

emergency was passed and the Armistice safely signed, ten thousand

Monticellos began asking if government operation was going to offer them

no better relief from the ills of private operation. It was as nothing to

them that there had been a saving of trains and of train mileage between

Chicago and St. Louis with no apparent diminution of the service between

those two metropolitan cities; they simply knew that there had been a

great lessening of their own service. And while they were willing to

accept such a lessening as a part of their war sacrifice they did not

intend to accept it as a permanent transportation condition, either from

the Government or from private capital.

This general plan held, however. There are some pretty big and powerful

Monticellos between Chicago and the coast. Denver is one of them, Omaha is

another, Kansas City a third. And because, to make a single instance, any

one of these cities demands a fairly quick and efficient service to

Portland and the Puget Sound points, it was necessary after a time to

modify to some extent the simplified route plan and to give these

intermediate points through train service, or at least through Pullman

service.

These changes and others like them have brought great savings in passenger

mileage. That cannot be denied, even though one is tempted to add a

doubting corollary as to the shattering of the finest passenger service

that any land ever has received. The war crisis demanded curtailments. The

railroads themselves had recognized that, even before the coming of the

McAdoo administration. From May 1, 1917, up to the end of that year their

War Board succeeded in reducing the passenger service by 28,656,983

train-miles. Yet this was not a circumstance to the slashing done by the

Federal Administration. In September, 1918, McAdoo reported to President

Wilson that he had succeeded in eliminating passenger-trains to the extent

of 47,420,000 additional miles a year, a really astounding total.

But in all probability the most popular economy of this sort that McAdoo

succeeded in bringing about was in the consolidation of passenger

terminals across the land, all the way from the biggest towns down to the

very smallest. He began at the top in the city of New York. The

Pennsylvania railroad since the opening of its wonderful new station in

Seventh Avenue in that city in November, 1910, quite naturally had held it

exclusively for itself and for its subsidiary, the Long Island railroad.

In that tight stand it was right from every competitive point of view. It

had taken the great engineering problem and its financial risk entirely

upon its own shoulders; shrewd railroaders had shaken their heads

dubiously as they contemplated the daring move; and there was no reason

why it should share the fruits of its enterprise with its competitors.

But the competitive situation had been eliminated. Therefore McAdoo did

not hesitate in personally ordering that the highly competitive Baltimore

and Ohio, as well as the non-competitive Lehigh Valley (which up to that

time had been using the old Pennsylvania station in Jersey City), should

bring its through trains into the Pennsylvania terminal on Manhattan

Island. (Incidentally, at the eleventh hour of the existence of the

Railroad War Board the Pennsylvania had proffered the use of its station

for this purpose.) The tickets of the B. & O. and the Pennsylvania between

New York and Washington and intermediate points were moreover made

completely interchangeable.

The Pennsylvania people did not enjoy these orders, even though they had

proffered the station at New York. But they were good soldiers. The

country was at war, and they complied readily with war-time orders, no

matter how unreasonable they may have seemed to them.

In a similar fashion the Southern Pacific people made wry faces over the

order that admitted the Santa Fe into their ancient train-shed and "mole"

at Oakland, opposite San Francisco. Their position was not so well taken

however. Even in the competitive era the fast ferry-boats of the Santa Fe,

coming from its rail terminal at Richmond, had entered the same terminal

with the S. P. at San Francisco--the great union ferry-house at the foot

of Market Street. And had not the Santa Fe, as the longer route, been

compelled as a war measure to sacrifice its two pet trains between San

Francisco and Los Angeles and San Diego, the precious Saint and the Angel?

These consolidations--there were many similar ones in the freight

terminals as well--went on all the way across the land. Where there were

two or more engine-houses in a place fairly close together, and it was

humanly possible so to do, they were consolidated. Trackage at terminals

was simplified; for instance at Chicago the trains of the Baltimore and

Ohio and Pere Marquette systems, which formerly had entered their

passenger stations by a rather circuitous route, were now sent in to them

over the tracks of the Pennsylvania, and a saving of approximately seven

miles and forty minutes of running time made.

Certain captious critics of Mr. McAdoo's constructive policies have seen

in these terminal and other physical consolidations of the several

carriers a deep-laid plot to "scramble the railroad eggs," which means so

to weld the properties together that they could not be easily separated

again. Despite the fact that the "unscrambling" has indeed been no

particularly easy task, I do not see in McAdoo the deep-dyed villain that

so many others perceive. I think that he consolidated these terminals and

other operating devices in the interest of real war-time efficiency and

economy, and for no other reason. That would seem at this time to be an

impartial verdict upon his actions.

I am also setting these things down in some detail because they too are

essential to a proper understanding of the final results of the nation's

first sweeping experiment in centralized and governmental railroad

control. The most of these operating economies were the accomplishments of

the Railroad Administration of the sort which some time ago I

characterized as obvious. Now consider a few of them that were

strange--marvelously strange, you may prefer to put it:

The Railroad Administration sought as one of the first of its economies

the consolidation of the various city ticket-offices that competition long

ago had set out in the larger cities of the land, as well as the complete

abolition of the so-called "off the line" offices--agencies in cities more

or less remote from the actual territory of any given railroad. So far, so

good. So far was obvious and sensible economy. If an office here and an

office there had been retained for the essential travel needs of the

roads and their office forces and furniture had been brought together

wherever it was necessary, the others being either abandoned or

temporarily closed, there would have been no complaint. But the "winning

of the war" took the strange effect in most of the large cities of the

land that the Railroad Administration hired new office space--in Chicago

it took virtually the entire ground-floor of a huge new sky-scraper on a

ten-year lease at $65,000 a year--and installed elaborate and expensive

new mahogany office equipment. In New York alone four of these great new

offices were fitted out, and many of the smaller and cheaper offices,

abandoned, stood idle for months, while the rent went merrily forward.

These things were inexcusable. So were many others. Apparently the

ordinarily astute first director-general made a great mistake at the

outset. He did not realize perhaps that he was attempting to do two things

at once--trying to solve an acute war problem as well as a great economic

one that had been gathering urgency for nearly a decade before the coming

of the World War. That at least is a kind construction to place upon his

policy. And if it was indeed his policy it was not so very different from

that which was followed those days by many other large activities down at

Washington. Apparently we have not yet learned that almost any war problem

is separate and distinct from those of our great social economic questions

that are forever showing themselves in one form or another. For instance a

good many of us confused the problems of the capitalization and labor of

the railroads with that of taking them over as an emergency war measure,

just as we repeatedly mixed up all sorts of social and economic problems

with the making of an emergency war revenue tax.

Such apparently is also a fair construction to place upon Mr. McAdoo's

remarkable activities in setting great forces of designers and draftsmen

at work to create new "standardized" locomotives and cars for our

temporarily nationalized railroad system. He made a widely circulated

statement that he had found "2303 different styles of freight-cars and

almost as many different descriptions of locomotives" and that these

presently would be reduced by his experts to twelve standard types of

freight-cars, and to six standard types of locomotives of two weights

each. Unquestionably our railroad freight equipment has stood and still

stands greatly in need of much standardization, although the roads

themselves long ago established enough of this to permit common operation

of their cars. But I doubt if such a standardization program had any real

part in an emergency war plan. I never have been able to reason that out

to my own satisfaction.

Nevertheless McAdoo was satisfied with his own idea and in 1918 alone

ordered 1430 of his standard locomotives and about 100,000 of the

freight-cars, at prices enormously above those of peace days. The engines

and the cars eventually were delivered. That they were good engines and

good cars I do not doubt. But they have never enjoyed any marked

popularity with the railroad operating people. They are a conservative

lot, these old hard-shell railroad executives who still hang on to a

remarkable degree all the way across the land. You cannot lead them easily

to new ways of thought.

All these fine frills, introduced in the midst of one of the most acute

national crises ever visited upon this country, cost the Railroad

Administration much time and much money--much useless time and much money

that might have been used to better advantage in other directions. Digress

for a moment with me and compare the great and bulky operations of the

Railroad Administration with those of its prototype across the Atlantic,

the war-created Railway Executive Committee of England.

The war wreaked no ravages elsewhere in England more striking than those

that were wreaked upon her railways. She was quick to realize the supreme

importance of her rail carriers to her in her crisis. And so she reached

out within a fortnight after the outrage of Louvain and, with the

authority that had been given her long years before by Parliament, took

over the rail lines and began operating them for the national weal. There

was no policy of vacillation on her part. It was a situation that she had

anticipated and solved several years before the coming of the war.

Even before 1912 there was in existence an English body known as the War

Council of the Engineer and Railway Staff Corps. This council consisted of

the general managers (in England the post of general manager compares with

that of the president of an American railroad) of the railways that in the

event of war with a Continental power would have the most to do with

military traffic. The council made elaborate and definite war plans. The

possible invasion of the east coast was anticipated and detailed

plans--even to the working out of actual train and engine schedules--were

made for the evacuation if necessary of the population of east coast towns

and cities and the movement of troops and heavy guns up to them. This

council by 1912 had developed into the Railway Executive Committee, which

was composed of the general managers of the twelve most important railway

systems of Great Britain. It in turn formed an integral part of a Board of

Communications, which included representatives of the War Office, the

Admiralty, the Board of Trade, and the Home Office. Among these

representatives was Sir Eric Geddes, then first lord of the Admiralty, a

young Englishman of great promise and energy and to-day the British

minister of transport.

The Railway Executive Committee went to its job quickly and without

ostentation. While it sought to unify the operation of John Bull's

railways so that he might help win the war most efficiently and most

promptly, it had no false or grandiloquent ideas of creating a single

national rail system overnight. It did not seek to tear down in a day what

had taken the patient labor of years to upbuild. It sought not to

standardize either baggage-cars or locomotives or dining-car meals. It

even escaped having a director-general. Its printed forms were few and

modest. It had no press-agent, no propaganda. Few people outside of

railway and army circles even knew of its existence. At the height of its

endeavors it employed in its joint efforts a total force of not more than

eighteen officers and clerks, who occupied two floors of a very small

office-building directly across the way from the Houses of Parliament. It

was an extremely simple enterprise. But it functioned and functioned

extremely well.

Eighteen employees, as against more than twelve hundred at the very

beginning of the United States Railroad Administration. Even to-day, two

years after it has ceased to function, there are still several hundred

retainers faithfully hanging on to their official jobs.

Mr. McAdoo might find some shrewd lawyer's way of proving his

"standardized" locomotives and freight-cars a necessity for the winning of

the war, even though the elaborate consolidated ticket-offices would not

be so easy to explain. But just why orders should have emanated from his

offices to place his name as well as his title upon every piece of printed

matter issued by the United States Railroad Administration--even to the

dining-car menus and even to each third mile upon the scrip-books issued

for passenger travel--is particularly difficult to understand.

Particularly so, as a war measure in a war for democracy, at any rate. The

hub of the troubles with Mr. McAdoo seems to have been that he regarded a

war crisis as a fit moment for an experiment in the details of a

centralized railroad operation for the United States.

* * * * *

The chief criticism launched against the first director-general of the

Railroad Administration is in regard to his handling of railroad labor.

The more conservative the mind that you scratch upon this extremely

delicate topic the more violent the immediate reaction. "Barron's Weekly,"

published by the "Wall Street Journal," regards Mr. McAdoo's attitude

toward railroad labor as that of an arch-tyrant. But that is merely

typical Wall Street attitude and to be dismissed as such. I had, as I have

already said, very little sympathy with the director-general's addresses

to the men at Pueblo and at El Paso, where he assured them that at last

they had come into the rights which had been denied them and that

hereafter they were to receive the square deal. That was unnecessary. More

than unnecessary, it was unfair. And more than that, it was an extremely

dangerous doctrine to be preaching, particularly at that time. I cannot

see how it possibly could do one single thing toward upbuilding railroad

morale, the thing needed at that moment more than anything else. It could

scarcely do else than lower that shattered morale still further. And it is

possible that Mr. McAdoo regrets at this moment that he ever gave

utterance to those two speeches, patting railroad labor on the back when

railroad labor should have been congratulating itself that it was not

conscripted and sent into the trenches. This is said with all deference

and with a high regard for railroad labor in the United States.

On the other hand McAdoo did a most commendable and forward-looking thing

when he gave labor a fair place in his official cabinet. Then and there he

played a trump card that private ownership and operation of our railroads

forever and a day had failed to play. He played another when at the very

beginning of his term of office he put the entire question of wages in the

hands of a competent commission headed by the late Franklin K. Lane, of

whose fairness and ability there could be no question whatsoever. Mr. Lane

knew men; he also knew railroads. He was perhaps the one man in the United

States who might have taken the Railroad Administration and made an

unqualified success of it. The ablest member of the Wilson cabinet, he was

compelled to take a back seat in the big war drama. His capabilities and

his experience were virtually ignored.

The Lane Commission went more carefully into the question of railroad

wages than any one had ever before gone. It did what no individual

railroad or group of railroads ever had the intelligence or the courage or

the fairness to do--attempted to make some sort of impartial analysis of

living costs to the railroader, and to use these as a basis for the fixing

of his wage. The question of compensation never has been placed upon a

scientific basis.

The whole question was so big and so vital that even despite war-time

pressure the Lane Commission took until May, 1918, to render its decision

in favor of considerable increases to almost every type and rank of

railroad worker. It unquestionably was a fair decision. Some that followed

may not have been so fair; McAdoo unquestionably was led far afield

himself by some of his advisers in elaborate and almost absurd attempts at

standardized wage and working agreements. Yet at the time he took over the

railroads for the Government the rank and file of railroaders

unquestionably were underpaid--in certain cases grossly underpaid, and

with their living costs rising by leaps and by bounds.

This entire question of railroad labor, its rights and its wage, is so

involved and so complicated in detail that I am going to leave it for

another portion of this book. It is enough to say here in review of the

McAdoo administration that on December 15, 1917, thirteen days before he

assumed control, the total number of employees upon the Class I roads of

the land (87 per cent. of the railroad mileage of the country; all save

the lines with gross revenues of less than a million dollars a year) was

1,703,685; on January 15, 1919, four days after he had relinquished

control, it had grown to 1,843,530--an increase of 139,846, or 8.2 per

cent. Yet the pay-roll expense, which had been 61.48 per cent. of all

operating costs in 1917, had only risen to 65.62 per cent. It was not

until the following year that an average increase of nearly 50 per cent.

in railroad wages was granted, in the face of a still generally increasing

cost of living.

But by the next year McAdoo was out of the job. The Armistice had been

signed on November 11, 1918, and immediately thereafter Mr. Wilson gave

heed to Mr. McAdoo's protestations that, the war-time emergency having

passed, he was no longer needed and that he must go out into the world to

recoup his shattered personal fortune. Accordingly he ceased to be

director-general of the United States Railroad Administration on January

11, 1919, and was immediately succeeded by his right-hand assistant,

Walker D. Hines, whom we have seen already as the one-time chairman of the

board of the immensely important Santa Fe railway system.

Hines is in many ways the very antithesis of McAdoo. There is nothing

dramatic or spectacular about him whatever. On the contrary he is what he

began to be, a typical corporation lawyer, cool-headed, judicial, shrewd,

and honest. He probably would tell you himself that he broadened a good

deal down in the offices of the Railroad Administration. I could see the

changes. He became vastly more human; his Washington experience seemed to

quicken his sympathies and to broaden his understanding of men.

His job was vastly different from that of McAdoo. The job, like the man,

now lacked fireworks. There were no longer troops and their munitions to

be moved double-quick to the seaboard; instead there was the rather

leisurely return of the boys in khaki to their homes. Industrial

production across the land was slackening, not quickly but appreciably.

Oddly enough, however, railroad revenues still were increasing; they were

not to reach their peak until near the end of 1920. Total operating

revenues of the Class I roads, which were $4,014,142,743 in 1917, and

which had increased to $4,880,953,480 in 1918, came to $5,144,795,154 in

1919. In 1920 they reached, under the stimulus of tariff increases ranging

from 20 to 50 per cent., the enormous summit total of $6,171,493,301. In

the first ten months of 1921, the most recent figures at hand, they were

but $4,672,651,346, as compared with $5,082,819,687 for the same ten

months of 1920.

It was under the Hines administration that most of the national working

agreements were made, to which the private railroad operators were to take

such extreme exception after the return of the properties to their

control. But again I must ask you to defer comment or criticism until we

have taken up the entire question of railroad labor as a sizable problem

by itself. It is enough to say here that Hines encountered a very

considerable opposition when he raised wages generously, and raised rates

not at all.

The fact remains, nevertheless, that Mr. Hines had in his stewardship a

very thankless job at the best; it is always hard to follow a prima donna

upon the stage. And McAdoo was some prima donna! Yet in loyalty and in

energy Hines gave place to no one. He took the thankless job and made the

best of it. He undermined his health by his devotion to it and received no

praise from any quarter. His best reward must come in his own knowledge

that, all in all, he did a good job, with difficult timber--the best of

the subordinates of the Railroad Administration already were leaving it

for future peace-time jobs of permanency--and with no encouragement

whatsoever. And when the United States Railroad Administration ceased its

active career upon March 1, 1920, and handed the railroads back to their

owners for operation, I fancy that none was more rejoiced than Walker D.

Hines.

What then was the net result of our first--and possibly our last--national

experiment in the government operation of our huge railroad plant?

Even to-day, fully twenty-four months removed from the experiment itself,

that is a difficult question to answer quickly and fairly. It is even

difficult to say that, regarded merely as an experiment, it was a fair

test. Certainly no laboratory expert deliberately would choose the

critical final hours of a great war as an ideal time for dispassionate

experimentation. It was in such hours that McAdoo, who was the head and

front of the entire experiment, worked. When his successor came to high

office the entire country was in the "let-down" that swept across the land

as the very natural sequence of great national tension and endeavor.

The distinguished writer upon railroad economies, William J. Cunningham,

James J. Hill professor of transportation at Harvard and himself for a

time a subordinate executive of the Railroad Administration, does not

believe that the experiment was a success. In a recent issue of the

"Quarterly Journal of Economics" he says:

Finally we ask ourselves whether our recent experiment in Federal

control affords an adequate test of the desirability of a permanent

policy of public ownership and management. The answer is plainly in

the negative. The results in 1918 were favorable. In 1919 they were

unfavorable. They were favorable in 1918 because at that time we were

actively engaged in war, every influence of patriotism supported the

Railroad Administration, and the organization was held at concert

pitch by the critical military needs. The unfavorable results in 1919

may be attributed in greater part to the pronounced reaction from

war-time strain, to the serious decline in traffic, and to the

disintegration of the organization in a too prolonged closing period.

No one should question the expediency of the Government's action in

taking the railroads in the emergency. The centralization of power and

the more effective coordination with other branches of the Government

in the crisis made possible effective results in the utilization of

equipment and facilities, which would have been much more difficult

under private management. But it is not proper to treat that period as

the test of what might be expected under normal conditions. As regards

the unfavorable year, 1919, it would be as unfair to make that a test

of government operation as it would be to take the present period of

subnormal traffic and disturbed economic conditions as the final test

of private management.

Those who advocate nationalization and look upon the results of both

years as favorable to government operation must concede that they are

to be credited to railroad men who rose to the emergency. The

proponents of nationalization who are disappointed in the results of

the two years attribute the failures to the fact that the real

management during the greater part of Federal control was in the hands

of men who were brought up under private management and who therefore

could not or would not avail themselves of the advantages of

unification.

It is plain therefore that nothing definite can be proved from the

results of 1918-19. A real test of government operation is possible

only if carried on over a longer period--one in which business

conditions are normal and in which political expediency would have

normal play. The period under review was so abnormal that the results

are valueless as guides to what might be expected from similar control

or complete government ownership when normal conditions return.

I do not agree entirely with Professor Cunningham. I am not a "government

ownership (or operation) man," but I feel that the experiment of the

United States Railroad Administration, despite the tremendously difficult

conditions under which it was operated, and also despite the fact that it

was made at a very inopportune and inappropriate time, did have much real

value. Unquestionably the time set for the experiment was far too short.

Both Mr. McAdoo and Mr. Hines went on public record as saying that there

be at least five years of peace to show their plan at its full worth.

But even in twenty-six brief and hectic months many things were developed

that should be, that must be eventually, of great value to the present

private operators of our railroads. Of many of these things as well as the

possibilities for their development, this book will have to tell. The

Railroad Administration at least pointed the way to them. In view of that,

shall we not be broad enough to overlook its errors and its mistakes, and

yet call it a real advance toward the solution of a national problem that

advances sluggishly to that end?

Our Railroads To-Morrow · 第 3 / 16 章