The midland journal. (Rising Sun, Md.) 1885-1947, 1901-06-14
Government and Municipal Owner
ship.

all public utilities steadily gains in public
favor as the people become familiar with
the subject from hearing it discussed,
even in the casual and cautious way the
daily papers venture to mention the
subject.
Notwithstanding the corporations have
secured pretty nearly absolute control OF
the public press, the news OF current
events, which the censors of the press
must admit into print, suffices to inform
the public in degree of the encroach-
ment upon the rights of the people the
government grants of franchises permit
incorporated and concentrated wealth to
make. Turning over these natural mo-
nopolies to incorporated companies gives
those artificial persons, or incorporated
companies, power to levy tax on the
public at their will.
This abuse which is inseparable from
the exercise of unrestrained power is
more and more drawing public attention
to it, irrespective of party, as far as the
masses are concerned.
The great Morgan combination OF rail-
roads has aroused public attention and
apprehension more than ever before to
the danger. Even Republican papers and
the magazines are calling attention to the
encroachment on the Liberties of the
people, colossal combines portend, and
talk seriously of the necessity which may
determine the public to "socialize" these
public utilities. Such publications are
beginning to discuss socialism in mod
crate and sensible way, and have ceased
TO froth at the mouth and go into spasms
at the mention of socializing public util-
tiles. In year we may reasonably ex-
pect to fluid these conservative" publica-
tions earnestly discussing the problem of
public ownership of public utilities.
Some of these wise statesmen who,
albeit, have but very little wisdom on the
subject, are appalled,, or profess to be, at
the enormous cost, the mountains of debt
the government would be placed under
by the purchase of all the railroads, to say
nothing of other public utilities. The
people are paying 10 the companies, in
the form of dividends and fabulous sal
aries, not only on the legitimate cost of
these public works but on as much or
more fictitious debt, commonly called
"water''
In the event of the people determining
to take the roads and operate them under
government management, as the post
office, there is no obligation on the part
of the public to pay the corporations for
the franchises they enjoy. A franchise is
a right which government cannot deed to
a corporation. 1t is the free will of the
people. They are not compelled 10 ride
On the railroads or to ship single pound
of freight. Self-interest induces them 10
do SO, but the government does not as
sumo to compel them, and is powerless to
endow the corporations it creates with
such right.
This being true, and no one will dispute
it, the railroads, or other corpor atoms
controlling natural monopolies could only
sell to the government the tangible prop
erty they possess, which is the roadbed,
track, cost of grading and building, the
rolling stock, depots, shops and such real
property as a fair cost price can be placed
upon, or for the amount it would cost the
government to duplicate them. This can
readily be ascertained and would not
amount to one-half the sum represented
by the bonds and stocks which are assunl-
ed to represent the capital of the roads.
Parties i'll consequence, who hold this
debt, would suffer loss; and parties who
have invested in this species of property
have been subjected to heavy loss by
bankrupt roads ever since the first track
was laid down. The worth of property is
what it will bring at fair sale.
1t is the franchise which gives the roads
their value as an investment, and OIL
which the waterad stock has been issued.
The roads cannot sell and give title for
this public utility known as a franchise,
because they do not own it, but have been
enabled to utilize it by virtue of their
charters and the ownership of the roads
and their tangible belongings. There
should not have been one dollar of bonds
or stock placed on the roads or any other
utility, more than the necessary expense
of construction and equipment. When
property has more debt upon it than it
will sell for the holders of the debt suffer
prorata loss. This is the law of business
everywhere.
The actual cost of the railroads Of the
country is placed at about S., 600, 900, ooo
Their capitalized debt is placed at
$II ,ooo 900, 900 or more.
When this problem reaches the point
of being solved by government owner
ship, and the concensus of opinion is
Enthusiastically moving in this direction, it
will be readily solved, as any other ordi-
nary business problem.
What length of time may elapse before
this question is ripe for disposing of no
one can say, but from the signs growing
out of the great railroad combine Morgan
and his fellow associates are periecting,
and the signs of public alarm it is caus-
ing, the time may not be at SO great a
distance as it might seem. Changes in
the business of the world are moving at
electric speed.
Issuing bonds for the purchase of rail-