The record-union., 1894-08-18
A VERY REMOTE CONTINGENCY.

A VERY REMOTE CONTINGENCY.
It is interesting to watch the imbecility
of the anti-railroad sentiment on this
coast. If railroad abuses exist, their re-
form is not only postponed but the effort
in the direction Of reform is absolutely
smothered by the introduction of impos-
siple and impractical suggestions.
Tho railroads of the United States will
not be owned by the Government. The
whole proposition is preposterous. 1t is
evidently one of the means by which the
railroad companies attract attention away
from themselves. The railroads of this
country have bonded Indebtedness ex-
ceeding five billions of dollars. Forty
per cent. of the railroads are direct COM
petitors with each other for the same trsf-
&c. There is, therefore, at least forty per
cent. of the roads. the ownership Of which
would be undesirable. A Government
system which would exist without COM
petition would reject at least seVenty-1ve
of the one hundred and sevsnty-five thou
sand miles of railroad in the United
States, The railroads have been con-
structed solely for the profit which arises
out of their construction. Railroads con-
etructed for $4,000 per mile have
been bonded for $4,000, and divi-
dend of $4,000 declared from the proceeds
Of the sale of bonds.
The Government ownership of these
roads by purchase Of their capital stock
or by condemnation would make good to
the investor both of the stock and bonds
all this extravaganza. It would be a
Governmental confirmation of excessive
capitalization. A system of railroads can
be constructed in the United States whic b
will be adequate to the movement of the
interstate commerce of the country for 40
per cent of the present bonded indebted
ness of the railroads of the country. We
do the anti-railroad howlers and the
demagogio howlers for Governor, Con-
gressmen and other positions a
favor by new suggestion. It is
not Government ownership Of the
present railroads you want. 1t is the
construction by the Government of sys-
tenn of railroads adequate to the trans
portatlon of the interstate commerce OF
this country. You do not want the Gov
ernment TO buy the stock interest out and
become responsible for i've or six billions
of bonds, when for one-half of the face
value of the bonded Indebtedness of the
railroads in the United States complete
system could be constructed. What you
want is to work this new field of dema-
gogism on an snti-rsilroad basis.
The Government ownership of exist
ing railroads would be godsend to all
the railroads in the country. If they are
prosperous they are valuable, and the
Government must pay in proportion to
their value. They will pass out of the
hands of the present owners at not less
but more than they are worth. The Gov
eminent means an administration. Ad-
ministration means q boss politician at
NE head Of 8 party. No confscstory
legislation can be passed. So the roads
must be bought at price Ia excess of
their value. for the negotiator on behalf
of the Government is going to be the rep
rssentstiYe of the political bossism of the
country. The Governments are thus to
assume the bonded indebtedness. and
thus political party in the administra-
ton of the Government iz to take the
place of the present corporations in man
aging the transportation interests of the
country. It ought to be apparent that
this proposition is defective as dsms-
gogio measure.
A better line will be found In the
proposition for Governmental construc-
ton OF trunk lines running east and
west and north and south; and above
all for the improvement of the navigable
waters of the country. It is a matter of
no little surprise that party IN favor oi
converting all the rivers of the country
into canals has not arisen. The rail-
roads have more to fear from water
competition than from Government own
arship or Governmental construction Of
railroads. We content ourselves by
saying that Government ownership of
railroads Is an issue evidently sug-
gested by the railroads themselves. It
IS not feasible, it is not immediate; and
It certainly furnishes sn escape from
any real issue as convenient as the rail-
roads themselves could have invented.