The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1906-10-05
THE FOLLY AND DISASTER
OF STATE OR FEDERAL OWNERSHIP OF RAILROADS.

Editor The Advertiser:
First-How can any rejecting MIND
favor the plan of the United states
owning and operating the trunk lines
of railroads and the States owning and
operating the branch lines? II the
they would he Government property,
and the states cannot tax the properly
of the United States. How many BILL
erty would be thus withdrawn from
the taxing power OF the States. coun-
ties and municipalities? With that
enormous amount OF railroad property
power. the revenue Of States. counties
and municipalities must be correspond
ingly decreased. and this great loss be
made up by piling up taxes Snsa on other
thousands of dollars Of taxes would
Alabama lose annually under such
plan?
purchases the trunk lines, how Is the
State to preserve its control Of rates
on purely State commerce? The trunk
lines would do local business Just as
they DO now. and the United States
would determine for itself what rate
1t would charge for the use of Its own
property in that business. The power
business on these through lines. would
be destroyed. By virtue of its control
OF interstate commerce, the United
States would also fix the rates the State
would get for the use OF the States
property, where they owned the branch
lines. whenever the States roads are
used as part of through line IN
interstate shipments. The policy Of the
trunk lines as to their purely loca!
rates might be such as would initiate
against the earning capacity of the
branch lines owned by the State, which
frequently have TO compete in its local
business to the same point. The State
could get and maintain uniformity in
local rates only by some sort of agree
mant or treaty with the owner of the
trunk lines.
Third--The constitutions of some of
the States, like ours, would have to be
amended before they could engage ir
railroads. Would not the Constitution
Of the United States also have to be
amended to enable them to buy and
ally? Has the United States, under the
existing Constitution. any more right to
operate railroads than 1t has to buy
farm LANDS or mines and go into the
business of raising cotton. wheat and
tobacco, or mining coal, Oh the theory
that this Is the only way to prevent
extortion and high prices to consum-
eral government confined to regulating
commerce. when and DIS 1t comes into
existence. Does the power TO regulate
commerce include the power to buy and
transport product to market any more
than it involves the right to buy and
traffic in the articles which are the sub
ject of commerce?
disaster overtakes the railroad bust
ness, as 1t frequently does, and the
railroads are sold in the courts for the
payment Of their debts. the hondholders
new set of people buy the. railroads
and run them, and the people do not
suffer, because the business does not
prosper Under the new arrangement.
If business is bad and the investment
of owning and operating railroads does
not pay, the debts thus incurred will
pile up our rational debt and taxes.
How many millions of dollars have
been lost in Alabama and the. United
States in railroad investments since the
war. which the people did NOT bear, and
which under the proposed arrangement
debt? 1t would be the same old story
we have in Alabama, where the tax
poyers are still paying interest at the
debts incurred in the winding up of
the experiment of State banking, over
half a century ago.
s. The power to lay a. duty nj,,o on ea
our country. shows. has always been
used to build up the fortunes and meet
the necessities of the dominant section.
d de- Ste' the p tariff Impoverished the
South may be c said nov con OF
ditions of industry when the South
to some extent has become a manu-
featuring country. The people Of the
needs for the upbuilding Of its indus
tries and commerce at its shipping
ports, the application of principles for
not required. or Just under existing
conditions, in the older and more popu-
lous sections of the Union. IL the gov
eminent owned all the trunk hnes
would the more powerful interests
and sections which dominate that gov
eminent permit the trunk lines in the
South to continue to give TO ., its ;b ih
ports. rates which according 70 tne'r
present policy, have added so much 70
our prosperity. and are SO necessary 10
in the control of their owners. these
lines so long as the rates are not IN
just in themselves, can ; ndope the p4 che
section in which they get their busi-
ness If the government owned the
roads, these questions would be SCI
tied not with reference to the condl.
lions of the particular section. but
solely with reference to the demands
and competition of the dominant sec
6. Congress and the states have
wisely attempted to cure the, present
evils in transportation problems ny
tne thss Foolish f to Tas that ,hs
railroads will own the power that resn-
lates them. and. therefore,. the raii-
roads must be bought. If the rail-
lates them. by parity of reasoning an"
because of the operation of the sam"
maligan influences, they would also own
the government which would buy inc
railroads If it'll be true that the rail-
roads will own the government when
is regulating them. it must also pc
true they would own the government
which is to fix the values at which the
railroads are to be no"fh' d na1m tn or
CO. billions of dollars in excess of
their value If the peoples govern.
ment is corrunt and weak that "
cannot successfully regulate tho rau-
roads by law. how will that govern-
ment be made stronger and purrr nv
putting billions of dollars of property
and million or more of appointments
in its hands. and engaging in the bust
ness of railroad transportation. with
its thousands of conflicting political.
sectional. and business. demands for
favors and determinations?
I. Will the people have any chance
to overturn the party in power. wnen
that party has. directly or indirectly.
the appointment and retention of over
a million of officers and employers ana
laborers. whose bread and meat. to,
gether with that of their families. will
depend upon the suhserViency of these
million or more of appo!ntees to ,r, Inc
behestS OF the party in over! ne
protection of :ndividunlism which is at
the bottom of the opposition to trusts
would he killed at on" fell blow. ~"
sides. what sort of appointments wnuld
we have, especially in the Southf wac
nov really makes these appointn ,,tt -:
t. i'odcral appointments. and ~" m
teccdents of the men who control these