Morning journal and courier., 1893-08-07

sCHKME OF POPULIsrs.

SCHEME OF POPULISEs.
They Want the Railroads owned By
the Government and Bonds Issued
for the Main tenance of Them.
CHICAGO, Aug. 6.-Sinee the close of the
silver convention George F. Washburn of
Boston, chairman of the eastern division
of the national committee of the peoples
party, and Colonel A. G. Fiske of Den yer,
COL, president of the Pan-American BIZ
metallic association, together with other
prominent populists have been in consul
tation with leading government officials,
bankers, capitalists and railroad men of
the west devising gigantic scheme of gov
eminent ownership of railroads, which they
think will afford financial relief to the coun-
try and make at once an issue of two of the
pet planks of their platform. 1t is alleged
that the money stringency has affected the
transportation 30 greatly that the receipts
on many roads have fallen of fully one
third, and that receiverships for some of
them have already been asked for. If
these were granted it would mean the ruin
of commercial and industrial interests in
every western and southern state.
Mr.. Washburn, who Is prominent bus
iness man in Boston, Mass, tonight
states that most of the stock of these
roads is held in New England, they being
Boston enterprises, and that the loss of
dividends and threatened ruin are rapidly
creating sentiment in that section in favor
of government ownership of railroads, as
well as in favor of bi-metalism. The
plan proposed Is that the national govern
ment shall issue bonds for all legal and
Just indebtedness of the railroads, being
governed by the same tenure and con-
tract which now exist. The amount of
the bonds is estimated to be about two
thirds of the value of the roads, and an
issuance of legal tender treasury notes or
silver certificates is proposed for the re-
naming one-third.
Objection was raised to the populists'
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 should
be issued, sixty-five millions of people
could better absorb two billions of treasury
notes now than twenty-five millions of
people did in 1887, and that this issuance
of treasury notes would give immediate
financial relief and inaugurate a period of
prosperity unparalleled in the history of
the world. The populiste, however, do
not propose that the government shall buy
all the railroads at once, but so gradually
that no shock would be 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 populists say that while their party
is opposed to any new issuance of national
bonds no objection could be offered to even
exchange of bonds which already exist and
that the bonds could be gradually paid
and In few years the government would
own the railroads
it Is claimed that the plan would not an
tagonize existing railroad interests, and
that If the government owned all of the
railroads west of the Mississippi river, in
stead of being co operative to the eastern
roads they would be distributive and could
move TO market at cost and in this way
develop the resources of this coun-
try and stimulate trade. Also that
uninhabited sections could be colonized,
the low fares being an inducsment to i'm
migration, and in this way the cities would
be relieved from their oongested state and
an additional market be provided for man
ly would be needed in each state the cav
ing in high salaries would be enormous. 1t
| is claimed that the bondholders like the
idea and would receive national
bonds in even exchange, FORGETTING railroad
bonds of uncertain value, and would save
the stockholders from the loss.
The bank has taken kindly to the scheme
because 1t solves the problem how to get
more bends.
The employees would advocate the plan
because they would have tenure and sta
bility of employment, and through election
and civil service laws be able to protect
themselves againat injustice by superior
| officers as well as against removal.
1t is further alleged that merchants and
shippers favor the plan because there
| would be no discrimination in transports
ton rates in favor of the trusts and syndi-
oates and that 1t would reduce the aggre
gate of fixed charges fully one-third.
The farmers favor it because they would
get freight rates which would not b'
all the TRAFFIC would bear" and thereby
absorb all their profits.
Mr.. Waehburn will leave for Washing
ton to morrow to have theEmatter present
ed to congress and to secure the support O.
western and southern congressman.
n