Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1899-09-27
VALUE EASILY FOUND.
An Article Is Worth What 1t Win Sell for
on Open Railroads Are
No Exception to the Rule.

are largely responsible for the forma-
ton of trusts. said:
Now, have said that these favors are ex-
tended, by the common belize. and have said
and acknowledged that If one person attains
! rates which excessively favorable II his
goods are transported at loss. why other men
| using that same facility must make good the
loss. II goods are transported from Chicago to
New York for anybody for less than they cost.
why, that must be made up by the commerce of
hundreds OF others who pay too much
What is the remedy A simple one believe
Some gentlemen have suggested municipal
| ownership (Applause) Ladies and gentle
men, / have no quarrel with the applause of
municipal ownership. concede the principle
of 1t. The government has no right to empower
any private agency to perform function un-
less it be one which the government would be
bound itself to perform il that agency were not
TO be found. (Applause.) The only excuse for
empowering private corporation to discharge
public function is the excuse that the service
will be more efficient. The question. then. Of
municipal ownership is a mere question OF ex-
ped1ency. Can government administer a rail-
way, gas company or a street railway well
as private individuals with that strong. power
full incentive in the shape of hope of profit,
and with the peculiar capacity which Is devel-
oped by years Of experience? won't debate 1t
here, for this reason. that IL it be remedy it is
such a remote one that discussion Of it would
be discussion of the interests Of our children
rather than Of ourselves.
1t will be noticed that Mr.. Cochran
comedies the constitutional right of the
nation and its cities and towns TO own
and operate public utilities. such as
railroads, street railways, water and
gas works, etc. This is the basic le-
gal principle upon which the entire
argument for public ownership is
based. A franchise is the grant to an
individual, or a corporation. of the
privilege of performing certain public
functions which the government grant
ing it has the right to perform and is
in public duty bound to perform itself,
or empower others to perform as it's
proxy. This MIR. Cochran clearly
pointed out.
But there is another and much
more important principle to consider
than the legal right, or power, which
is conceded. 1t is the superiority and
pre-eminence of human rights over
vested property rights. 1t is the oppo-
site of what Mr.. Cochran speaks of as
''that strong, powerful incentive in the
shape of a hope of profit" This is
placing the dollar above the man.
Humanitarian considerations lay much
more stress upon shorter hours, better
wages and more humane treatment
for employees than upon the mere ques-
ton of dollars and cents, or profit"
Continuing. Mr.. Cochran said:
There are many grave questions to be consid-
cred before municipal ownership could be re-
duced to practical operation, even though we
would now set about the task. There are ques-
tions, for instance as to the rate of valuation.
Would we take them at what it would cost to
reproduce them, or at their earning power? II
you say you will take them at their earning
power tell you you would have rather doubt
full speculation. 1t is doubtful If you could take
them, II the government could take them, capt.
talized at their present rates. and make them
pay II you take them at what it would cost to
reproduce them you are brought face to face
with the question as to whether you have any
right. after the state stood by and encouraged
the original holders OF these franchises to sell
the capital which was issued upon them to in
nocent holders at the value that might be put
upon its earning power, and then take it back
from them on different valuation.
Outside of the question of ethics and Justice
you have questions of constitutional law to
study, End on the whole I consider the sugges-
ton Of municipal ownership as highly ingen-
ious and highly interesting but the suggestion
OF a constitutional convention to frame a new
constitution for the United States Is somewhat
remote.
Aoo why ~ "Ou1A NC Unnecessary W
frame a new constitution to re-invest
the general government and minor mu-
inequalities with constitutional rights
they already possess under the present
constitution, Mr.. Cochran did not take
the trouble to explain.
But started, more specially, to COM
ment upon the matter of valuation to
be set upon public utilities in the case
of their requirement by government.
This question has always been the bug
a-boo, or bogy man with which advo-
Gates of public ownership have been
met and with which it is attempted to
scare them. And yet the question is of
the simplest sort and very easily an
swered.
An article is worth" what it will
bring, or sell for, in open market. Rail-
roads, street railways and other public
utilities form no exception to this gen.
eral rule. 1t matters not to what ex-
tent the stock may be ''watered," or
what proportion of the capitalization
is fictitious, the market quotations, on
the stock exchanges. of the stock shares
and bonds which represent the capt.
talization will show precisely what
public utility system, or plant, is
worth. It follows, then, that the aver
age market value for term of years
(say five years. of its stocks and bonds.
will indicate the fair 1Aarket value of a
| railroad, or of street railway, or
waterworks plant.
This mode of valuation is fair alike
| to the holders of stock shares and
bonds and to the general public. The
| shareholder and bondholder would re-
ceive in United States bonds the mar
ket value of his holdings, being COM
| pensated for the lower rate of bond in
terest by the non-taxable feature Of
| government bonds. The public would
| pay transportation charges less than
they now pay by just the amount of
taxes now paid upon stock shares and
bonds by their present holders, so that
both interests would be benefited
the stock and bondholders, by the sta
bility and safety of the government Sc
curities for which they exchanged their
present unstable and fiuctuating secur-
ities-the public, by the reduction in
transportation rates made possible by
| government operation.
But Mr.. Cochran deliberately dark
ened counsel and obscured the question
by speaking of municipal" ownership
in connection with railroad rates. as
related to trusts. There is a vital and
distinctive difference between the ma