East Oregonian : E.O. (Pendleton, OR) 1888-current, 1906-08-31

trouble about interstate traffic, al
though their political relations are
somewhat strained. The ownership
and operation of the local lines by
the several state governments Is not
only feasible, but 1t suits itself to tho
conditions existing in the various
states.
In those states where the people are
ripe for a change the local lines can
be purchased or new lines be built
at once. while private ownership can
continue in those states in which the
people still prefer private ownership,
Some states have been more careful
than others to prevent the watering
of stock, and in the acquiring Of roads
each state can act according to the sit
uation which it has to meet.
Government Holds Right.
AS to the right of the governments,
federal and state. to own and operate
railways there can be no doubt. II
we can deepen the waters I'm the lakes
and bui'd connecting canals in order
to cheaper railroad transportation
during half the year We can build a
railroad and cheaper rates the whole
year; il we can spend several hundred
millions on the Panama canal to low
er transcontinental rates, we can
build railroad from New York to
San Francisco to lower both trans
continental and local rates. The
United States mail is increasing so
rapidly that we shalt soon be able to
pay the interest on the cost of trunk
Lines out of the money which we now
Fay to railroads for carrying through
mails.
New Rate Bill a Sop.
II any Of you question the propriety
of my mentioning this subject I beg
TO remind you that the president could
rot have secured the passage of the
rate bill had he not applied to the fear
of the more radical remedy of gov
ernment ownership and nothing will
so restrain the railroad magnates from
attempting to capture the interstate
commerce commission as the Same
fear.
The high-handed manner in which
they have violated law and ignored
authority, together with the corrup-
ton discovered in high places, has
done more to create sentiment in ia
vor of public ownership than all the
speeches and arguments of the oppo-
nents of private ownership. have
referred to the railroad question as a
part of the trust question because they
are so interviewer that it is difficult
to consider one without the other.
Railroads Are In Politics.
Rate regulation was absolutely nec-
essary and it furnishes some relief
from the unbearable conditions which
previously existed, but we must not
forget that the vesting of this enorm-
Gus power in the hands of the COM
mission appointed by the president
introduces a new danger. If an ap-
pointive board has the power to fix
rates and can, by the exercise of that
power, increase and decrease by hun
dreds of millions of dollars the an
nual revenues of the railroads, will
not the railroads feel that they have
a large pecuniary interest in the elec-
ton of president frienai,iy, to the rail-
roads? Experience has demonstrated
that municipal corruption is largely
traceable to the fact that franchise
corporations desire to control the
city council and thus increase their
dividends. If their managers adopt
the same policy the statement in IA
vor of the ownership of the railroads
by the government is likeiy to in
crease as rapidly throughout the
country as the sentiment In favor OF
municipal ownership has increased in
the cities. 1 have already reached the
conclusion that railroads partake SC
much of the nature of a monopoly
that they must ultimately become
public property and be managed by
public officials in the interest of the
whole community in connection witt
the well defined theory that public
ownership is necessary where compe'
tition Is impossible.
1 do not know If the country IL
ready for this change. / do not know
that a majority of my own party IA
vors it, but 1 believe that an increas
ing number of the parties see in pub