The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-08-17

Of government ownership with favor argue
now that had the government undertaken
to secure the railroads some years ago,
innumerable corporations would have had
to be dealt with and these would have
have had to consult with a great number
of stockholders. Reads that might have
been connecting links In system would
have been held out and yielded only at a
great figure or when forced to do so
But as consolidation proceeds until few
men or few companies own the railroads
OF the country, the argument is tina. the
government would have to deal with only .
small number OF men--permitting the deal
to be consummated with comparative ease.
The proposed method, the Record says,
OF financing the matter is similar TO the
Swiss plan. Government bonds would be
issued and the bondholdcrs and stock
holders would be requested to exchange
their holdings for the government bonds
having a fxed rate of interest. The treat
ment OF the stock would have TO be upon
It's dividend earning capacity.
Our Chicago contemporary offers no sug-
gestions in the premises as to the desir-
ability or the feasibility of government
ownership under the circumstances. II
contents itself with presenting In the lin
tied manner above. some Of the schemes
and arguments of the advocates OF gov
ernment ownership.
Those who urge this policy have evil
ds,,.f Il ~ No
ton or are very reckless about the size OF
our government Indebtedness. Thousands
OF railroad stock or bondholders would
doubtless be very glad to get a govern
ment bond for their investment, and yet
others, in control of big lines, receiving
immense salaries and by various specula-
lions in the railroad world making other
thousands annually, might not want to
sell out to the government But IL the
scheme of purchase were easy this Ma
ton, rich as 1t is. could hardly undertake
such huge financial responsibility. The
aggregate capitalization of the American
railroads amounts to about $4,000, 900. 000-a
debt more than double the largest National
debt In existence!
1t must be remembered, too, that about
half this indebtedness Is pure water"
for which we would have to give a good
government bond and upon which tho gov
eminent would be forced to make the pub
lie pay return. Taking the Nation as a
whole the railroads earn on an average
only about 2h per cent, We would have
to swap for such profits at least per
cent bondl That the government could
make tho roads pay any more than their
shrewd managers now make them pay, is
extremely doubtful.
If we had begun to build the roads in
the first place. az other powers did, we
might have owned them now. but we
would have had no such mileage as the
country now shows. II would have been
impossible for the government to stand the
outlay even from year to year and when
we used to have SURPRISES, much less reach
anything like the huge development that
private capital has accomplished!
1t Is an interesting subject to speculate
upon and put in the platforms and an
nounce as the policy of new and reckless
parties but when 1t comes down to actual
| facts the roads can easier buy and own
tho government. as they have about done,
than the government can buy the roads!