The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-08-07
OWNERSHIP OF RAILROADS.
A POpuliSt Scheme in Favor Of Gov
eminent Control.

Its Advocates Confident That The
Change Would Afford The Country
the Financial Relief it Needs-Fif-
teen Western Roads Alleged to Have
Had Their Receipts Gut Down One
Third by the Financial Stringenoy--
The Government Would Retire Out
standing Bonds With New Issue.
Chicago, Aug, 6.-Sipce the close Of the
silver convention George Washburn, Of
Boston, Mass, chairman of the eastern
division OF the national committee of the
Peoples party, and Col. A G. Fish, Of
Denver, representative of the Pan-Ameri-
can Bimetallic Association, together
with other prominent populists of
the west, have been in consultation
with leading government officials, bankers,
capitalists and railroad men of the wesb
devising 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 planhs of their platform.
J. II. Davis, of Texas, who was the
Populist candidate for attorney general a
year ago, and who, during his campaign,
proposed a similar plan, is the legal cOun-
sci for the populists.
LOSSES IN THE WEST.
1t is alleged that the money stringeney
has affected transportation so greatly
that the receipts of many western roads
have fallen OF fully one-third, and that
receiverships for some OF them have al
ready been asked for, which will also
mean the ruin of commercial and indus-
trial interests in every western and
southern state. Mr. Washburn, who is d
prominent business man in Boston, to-
night 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 is
rapidly changing sentiment in that SEQ.
tiOn in favor of government ownership OF
railroads, as well as for hi-metallism.
THE PLAN.
The plan proposed, is, that the nation.
al government shall issue bonds for all
legal and Just Indebtedness, being govern
ed by the same tenure aud contractwhieh
| now exists. The amount is estimated 10
be about two thirds of the value Of the
railroads and the issuance of legal tender
treasury notes, or silver certificates for
the remaining one third Objection was
| raised 70 the populist plan to pay one
third in treasury notes, which would
greatly increase the price of products In
the country, but it was claimed that even
though the full amount, one third, should
be issued, 65,00O,0Q0 of people could
better afford to absorb 81, ,000,O 900 of treas
ury notes now, than rs, 900, 600 of people
| did in 1867, and that this issuance Of
| treasury notes would afford immediate
| financial relief, and inaugurate period
of prosperity unparalleled IN the history
OF the world The populists do not pro-
pose that the government shall own all
the railroads at once, but so gradually
that no shock would be felt in the me "
market. To begin with, the western
roads throughout would be taken in the
order of their application, some being
ready now.
THE NEW BONDS,
The populists say that while their
party is opposed to any new issuance Of
national bonds, no objection could be
offered to the even exchange Of bonds
which already exist, and that the bonds
could be gradually paid, and in a few
years the government would own the
railroads. 1t is claimed that the plan
would not antagonize existing railroad in-
terests and that, il the government owned
all railroads west of the MississIppi.riVer,
instead OF being competitive TO the
eastern roads, they would be distPibutive
and could be used by the government to-
move the crops TO the markets at cost,
and in this way develop the resources Of
this great western country and thereby
stimulate trade. 1t is claimed also that
uninhabited sections could be colonized,
the low fares being an inducement to em-
igration, and in this way relieve the
cities from their present Gongested state
and provide an additional market for the
manufacturers products for the people
who remain, and that, inasmuch as a
commission only would be needed in each
state the saving in high salaries would be
enormous.
LIKED By THE BONDHoLDERs.
1t is claimed that the bondholders like
the idea because they would receive
national bonds in even exchange for
hunetuating railroad bonds of uncertain
value, and it would save the stockholders
from loss The bankers lean kindly
towards the scheme, because 1t makes
clear the problem of how to get
more bonds. The employees would advo-
cate the plan because they would then
have tenure and stability of employment,
through election and civil service laws be
and able to protect themselves against in
justice by superior officers, as well as
against removal. IL is further alleged
that merchants and shippers
favor the plan because there would be no
determinations in transportation rates in
favor of trusts and syndicates, and that
il would reduce the aggregate of the fixed
charges fully one-third. The farmers fa-
YoP 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
Washington tomorrow to have the matter
presented to congress and to secure the
ettru rt of and col1tbpfsfl