St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-08-07
IT'S PRETTY ON PAPER,
P0PULiSTS' SCHEME FOR GOVERN
NEWT RAILROAD OWNER SHIP.
WHOLE COUNTRY WANTS 1T,

according to the Statement OF
One OF the Leaders-Proposi-
ton That Government Secure
Roads by Issuing Bonds for
TwO-Thirds and Treasury Notes
for the Remaining One-Third.
CHICAGO, Aug. 6.-Since the close of
the silver convention, Mr.. George F..
Washburn, of Boston, Mass, chairman
eastern division national committee, Peo-
pies party, and Col. A. G. Fisk, of Den
yer, Col, president Pan-AmerIcan BIZ
Metallic association, together with other
prominent POpulists of the West, have
been in daily consultation with leading
government officials, bankers, capital
lists and railroad men OF the West, de-
government ownership. which they
think will afford financial relief to the
country, aud make at once an issue of
two of the pet planks of their platform.
Mr.. J. II. Davis, of Texas. who was the
Popuiists' candidate for attorney gen
eral a year ago, and who during his
campaign proposed a similar plan, is
the legal counsel for the Popullsts. 1t
is alleged that
The Money Stringency
has affected transportation so greatly
that the receipts Oh many Western
roads have fallen off fully third, and
that receiyerships for some of them
have already been asked for, which
would also mean the ruin OF CONNER
cial and industrial interests in every
Western and Southern state. Mr.. Wash
burn, who is prominent business man
ill Boston, tonight states that 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 chang
ing sentiment in that section in favor
of government ownership of railroads.
as we'll as for bimetallism. The plan
proposed is that the national govern
ment shall issue bonds for all legal and
just indebtedness, being governed by
now exist. The amount is estimated to
be about two-thirds of the
Value of the Railroads.
and an issuance of legal tender treasury
notes or silver certificates 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
i'll the country; but it was claimed that,
even though the full amount of one
third should be issued, $1,000, 900 of peo-
pie could better absorb $4,000, 600, 900 of
treasury notes now than 25,000,0O0 of
people did in 1867, and that this issu-
ance of treasury notes would afford i'm
mediate financial relief and inaugurate
4 period of prosperity unparalleled in
The history of the world. But the Pop
ulists do not propose that the govern
ment shall buy ali 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 PopuIists
say, while their party is opposed to any
new issuance Of national bonds, that no
objection could be offered to the
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. 1t is claimed that the plan
would not antagonize existing railroad
| interests, and that, if the government
owned all the railroads west of the Mis-
sissipi river, instead Of being competi-
tive to the Eastern roads, they would be
| diStributive, and could be used by the
! government to move the crops to mar
ket at cost, and in this way develop the
| resources of this great Western country
and thereby stimulate trade. Also that
uDinhabited sections could be coloniZed,
the low fares being an inducement to
immigration, 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 a commission only would be needed
| in each state, the saving in high salaries
| would be enormous. 1t is claimed that
the bondEOlders like the idea, because
they would receive national bonds in
even exchange for
Fluctuating Railroad Bonds
of uncertain value, and would save the
stockholders from loss. The bankers
lake kindly to the scheme, because il
solves the problem of how to get more
bonds. The employees would advocate
the plan because they would have tenure
and stability of employment and through
election and civil service laws be able
to protect themselves against injustice
by superior officers as well as against
removal. 1t is further alleged that mer-
chants and shippers favor the plan be-
cause there would be no discrimination
in transportation rates in favor OF
trusts and syndicates, and that it would
reduce the aggregate of fixed charges
fully one-third. Tne farmers favor il
because they would get freight rates
which would not be all the traffic
| would haarv and tharnbv ahcorh oil