Republican news item. [volume] (Laport, Pa.) 1896-19??, 1903-02-19
Government Ownership OF Rail
noadS. by pENJ.G.WELcH.

mucn interested III UnlS SERIES VI dI-
ticles and especially requested that
we would indicate how it would be
possible for the Government to ac-
-quire the Railroads. Let us attempt
to deal with this phase of the ques-
ton.
AS to the constitutional powers
to take such step, it is hardly with
in the province of layman to de-
eide whether such powers are already
invested in the Government or not,
as it is disputed question with le-
gal and mental giants on both sides.
We venture the guess that any law
yer Of eminence would take either
side for fee that he would regard as
commensurate with the magnitude
of the matters at issue. OF one thing
we believe we may be reasonably
sure, and that is that if the constitu-
tional powers do not already exist
the people may amend the constitu-
tion 50 as to leave no doubt on the
subject. 1t is idle to talk about con-
fiscation; our government does not
confiscate anybody's property. 1t
buys what it needs and always pays
good price for it. If it should be-
come qualified to take the railroads
it will pay for them and in such a
way that the owners will have no
just cause of complaint.
AS to methods: is the easiest
problem of all. Our people who
read the papers are so accustomed to
see references to tranfers of immense
estates af all sorts that it is almost
surprising that this phase of the sub
ject should seem to be at all difficult.
When the Penna. r. r. Co. bought
the old Navy Yard property in Phil
adelphiu many years ago it was at
public sale, there was but one bid,
that was the railroad company for
one million dollars and it was knock
ed down at that. We have been
told that this sum WIS paid with
certified check and that the identi
cal check is still framed in the rail
road compauy's Offices in Philadel-
phia. AT that time it seemed like a
stunning transaction: now it would
not be regarded as of any particular
moment. No money in the sense of
gold, silver or bank notes was hand
led at all.
Later on when the Penna. r. r.
bought the Philada. Wilmington d
Bait. r. r. it involved nearly -four
million dollars and was handled just
as easily without the slightest ripple
of financial disturbance. The r. r.
Co arranged with one or more of the
Trust Companies to deposit the pur-
chased stock as securities for Trust
Certificates of an amount sufficient to
to cover the deal and it was simply
change of investments and no pile
of gold or any other currency was
handled.
Later the same company has ac-
quired control of the Norfolk &
Western, the chesapeake & Ohio,
the Baltimore & Ohio and also the
Philada. & Reading in substantially
the same manner. There has been
no confiiscation, no wagon loads of
gold or other currency and no COM
plants from investors. They have
simply different sort of a certificate
covering the same property only in
a much better shape.
The deal under which the Read
ing r. r. acquired the Central r.
II. of New Jersey is identical in
character and the holders of the
New Jersey Central stock simply, to
a very large extent, exchanged their
certificates of stock for Trust Certifi
Gates covering the same property
and in this case they were allowed
in the exchange the full value of
their holdings either in certified
checks or Trust Certificates. No fl
nancial ripple was created although
it ran into millions in value of prop
erty.
The United States Steel Corpora
ton is only another illustration Of
the same principle. Though valuea
apparently representing more than
a thousand millions of dollars wers
involved the actual change of hands
of what we ordinarily term money
was trifiing as compared with the
whole. 1t was In this case only Il