The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-08-07
TO BUY UP THE RAILROADS
Populists Devising q Gigantic Scheme
for Government Ownership.
It Is Said the Thing Could Be Inaugurated BY
Issuing $4,000. 900, 900 in Bonds, Which
Would Greatly Relieve the Country.

CHICAGO, Aug. 6.-Slnce the close OF the
silver convention Mr. George f. Washburn.
Of Boston, Mass, chairman of the Eastern
division of the national committee of the
Peoples party. ana Col. A. =. Fisk. of Dem
YER. president OF tho Panamerican b.
metallic Association, together with other
prominent PopulIsts of the West. have
been In daily consultation with leading
government officials, bankers, capitalists
and railroad men of the West. devising q
gigantic railroad scheme of government
ownership which they think will afford
financial relief to the country and make at
once an issue of two of the pet planks of
their platform. Mr.. j. H. Davis, of Texas,
who was the Populist candidate for At
torney- general year ago, and who, during
his campaign, proposed q similar plan. is
the legal counsel for the Populists. It Is
alleged that the money stringency has
affected transportation so greatly that tho
receipts on many Western roads have fallen
OFF fully one third, and that receivers b DIS
Tor some of them have already been asked
for which wOuld also mean the ruin of
commercial and industrial interests In
every Western and Southern State.
Mr.. Wsshburn, who Is q prominent bust
most of the stock of these rOads Is held in
New England, they being Boston enter
prises. and that the loss of dividends and
threatened ruin Is rapidly changing senti.
ment In that section In favor Of govern
ment ownership of railroads. well for
blmetallism. The plan pr0pL al is that
the national government shall issue bonds
for all legal and just Indebtedness, bein z
governed by the same tenure and cont act
which now exists. The amount is esti-
m ted Tn Ina n han w riz of ha In
OF the railroads. and an issuance of legal
tender treasury notes or silver cer-
titicates for the remaining one-third.
Objection was raised TO the Populist
plan to pay one-third In treasury notes.
which would greatly increase the price of
products In the country, but 1t Was claimed
that even though the full amount of one
third should be issued that t5. COO, coo of
people could better absorb two billions of
treasury notes now than twenty-five mil
lions or people did in 1867. and that this
issuance of treasury notes would afford
immediate financial relief and lnaugurate
period OF prosperity unparalleled In tho
history of the world The Populists do
not propose that the government shall buy
all the railroads at once, but so gradually
that no shock would bs felt In the money
market. Beginning with the Western
roads, they would be taken In the order of
their application, some being ready now.
The Populsts cay that lille their party
Is opposed TO any new issuance of nations al
bonds. that no objection could be offered
even TO the exchange OF bonds which AL
ready exist. and that the bonds could be
gradually paid. and In few years the gov
ernment would own the railroads. 1t is
claimed that the plan would not antagonize
existing railroad interests, and that, if the
government owned all the railroads west
of the Mississippi river, instead of beng
competitive to the Eastern roads, they
would be distributive and could be used
by the governments to move the crops to
the market at cost, and In this way develop
the resources of this great Western coun-
try and thereby stimulate trade. Also. that
unInhabited sections could be- cOlOniZed,
the low fares being an inducemsnt TO I'M
migration. and in this way relieve the
cities from their present congested state,
and provide an additional market for the
manufactured products for the people who
remain and that inasmuch as q commission
only would be needed in each state, the
saving III high salaries would be enor-
nous.
It is claimed that bondholders like the
idea because they would receive nation al
bonds, in even exchange, for tiuctuating
railroad bonds of uncertain value. and
would save the stock holders from loss.
The bankers are said to take kindly to the
scheme. because IL solves the problem of
how to get more bonds. The employees
would advocate the plan because they
would then have tenure and STABILITY of
employment, and through election and
civil service laws be able to protect them
selves against I'M Justice by superior Off GERS
as we'll rs against removal. It is further
alleged that merchants and shippers favor
the plan because there would be no dis
ordinations In transportation rates in
favor of trusts and syndicates. and that it
would reduce the aggregate of fixed
charges fully one-third. The farmers favor
it because they would get freight rates
which would not be all the traffic would
bear" and thereby absorb all their profits.
Mr.. Washburn will leave for Washing gton
tomorrow TO have the matter present ted TO
Congress. and TO secure the support OF
Western and Southern Congressman.