Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1899-11-01
RAILROAD PROBLEMS.
gress to Legaliss q SysteR Of Social
ism for Their Sole Benefit

gress to Legalise q systen Of Social
ism for Their Sole Benefit
Mr.. NJ. E. Ingalls,, president of the
Big Four and the Chesapeake & Ohio
railroads, advocated an extension of
the power of the interstate commerce
commission in his testimony before the
industrial commission at Washington.
Mr.. Ingalls, thinks that, along with the
authority to regulate the operation of
railroads, should go the power to aid
the railroads in maintaining rates.
He desires the anti-pooling law re-
pealed and the railroads given power
to make agreements with one another
to fix rates.
| If this is done Mr.. Ingalls, is willing
that the interstate commerce commits
sion shall have full authority to ap-
prove or disapprove of any rates adopt
ed and to examine the books and ac-
counts of railroad companies, just as
at present the comptroller of the cur
rency has full power to look at the
books of national banks in order to
see that they are not violating the law.
Mr. Ingalls, declares that, with proper
legal guarantees of stable rates, so
/
sonable earnings, he would favor a
system of profit-sharing with employees.
It would not take much of an extern
sion of Mr.. Ingalls, ideas to develop a
system of absolute government control
of railroads, leaving to the companies
only the details of operation and the
distribution of a reasonable return to
security holders. Such, a system in or
der to remove all temptation of fraud
or evasion Of the law, should limit the
amount Of interest and dividends to be
paid to security owners.
| Let It be supposed, for example, that
all railroads in the country be reor-
ganized with capitalization based on
four per cent. net returns in an ordi-
nary year, and that all earnings in ex-
cess of that sum be paid into the ma
tional treasury in return for a govern
ment guarantee of four per cent. an
nual interest to the security holders
The value of railroad stocks and bonds
would thus be made stable and sound.
The interstate commerce commission,
having absolute control of rates, could
SO regulate them as oinsure the yield
of four per cent. on capitalization and
in addition large revenue for the ma
tional treasury. The temptation for
competing lines to cut rates or grant
special privileges to favored shippers
would be entirely removed, the coun-
try would be absolutely assured of
stable. uniform and equitable rates,
and all the benefits of government
Ownership could be secured without
any of it's disadvantages.
Annfhor l,oroGf ~ crol
rangement would be the complete elm
ination of speculation in railroad secu-
rites. With no possibility of more or
less than four per cent. annual returns
the value of railroad stocks and bonds
would not be subject to fuctuation or
susceptible of manipulation by stock
gamblers.
Some such plan as this seems to be
the inevitable solution of the railroad
problem. The managers of railroads
have despaired of maintaining rates
without agreements and pools, and the
people OF this country are not likely to
countenance the placing of any such
power in the hands of the railroad
companies without the most rigid SUI
pervision by the national government
kansas City Star.
And now it is in order to inquire
why government ownership and opera
tion, rather than private ownership
and government control. would not be
much the better plan? If the capital
izatiOn and rates are to be reorganized
| and esta blished upon the basis of four
per cent, why not issue four per cent
United States bonds to the amount of
the reorganized capitalization and dis
tribute them pro rata to the present
holders of railroad securities? This
plan would, better than the plan sug-
gested by the Star. make the value of
railroad securities stable and sound'
and the government would have the
railroads as an asset to show for the
bonds. If rates are to be controlled
and railroad operations to be super
vised by the government, why not let
all railroad officials and employees be-
come government employees? There
would be no possibility of speculation
in railroad securities and the public
would have absolute assurance of
stable, uniform and equitable rates, %
and all temptation for competing
lines to cut rates or grant special privi-
leges to favored shippers or cities or
towns, would be entirely removed
These results are conceded by the
Star to be the principal benefits which
would be derived from government
ownership. but it speaks of ''disadvan-
tages' which would be connected with
such ownership. What are these dis
advantages? There has never been
but one pointed out in argument
which is at all worthy of notice, and
that is the power lodged in the hands
of an administration because of the
vote of the army of railroad employees.
It is argued that, by means of this
vote, an administration could keep it
self in power indefinitely.
This argument is easily met and
overthrown. In the first place, the
railroad vote is not more than one
thirteenth of the entire vote of the
United States, and it may easily be ap-
pretended that it could be overcome by
the combined vote of the residue of the
people. But the true answer to the
argument is that with the control OF
the railroads vested in non-partisan
national and district boards and a
strict civil service rule, rigidly enforced,
it would make no difference to rail.
road employe which party was in con-
troll OF the government, because the