Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-31

| the several state governments. Some have
opposed this dual ownership as fmpracti-
cable, but investigation in Europe has con-
WINGED me that 1t is entirely practicable.
Nearly all the railroads of Germany are
owned by the several states, the empire
not even owning the trunk lines. and yet
| the interstate commerce is in no wise OBJ
structed
"In travelling from Constan.inople to
Vienna one passes through Turkey, Bull
garia, Servia, Hungary and a part of Aus
| tria without a change of cars, and yet each
country owns and operates its own roads.
and different languages are spoken on the
different divisions of the line. Sweden and
| Norway each owns its railroads. but they
have no trouble about interstate traffic. al
though their political relations are some
| what strained.
State Ownership Feasible.
THE ownership and operation Of the local
| lines by the several state governments is
| not only feasible. but It suits itself to the
conditions existing in the various states.
| In those states where 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 owner
| SHIP Some states have been more careful
| than others to prevent the watering OF
stock, and in the acquiring Of new roads
| ton which II has to meet.
AS to the right Of the governments, fed
| eral and state, to own and operate rail-
| roads there can be no doubt. If we can
| deepen the water in the lakes and build
| connecting canals In order to cheaper rail-
road transportation during half of the year
We can build railroad and cheaper rates
the whole year; If we can spend several
| hundred millions on the Panama canal to
| lower transcontinental rates we can build
railroad from New York to San Fran
| cisco to lower both transcontinental and To-
| cal rates The United States mail is in
| creasing so rapidly that we shall soon be
able to pay the interest ON the cost of trunk
| lines out of the money which we now pay
to railroads for carrying through mails.
| If any of you question. the proprety of
| my mentioning this subject beg to remind
you that the President could not have Sc
| cured the passage Of the rate bill had he
| not have appealed to the fear of the more
| radical remedy Of government 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 corruption dis
| covered in high places, has done more to
| create sympathy in favor of public owner
| ship than all the speeches and arguments
| of the opponents of private ownership.
| Il have referred to the railroad question
| as part Of the trust question because they
| are 80 interviewer that 1t is difficult to con-
slider one wit hout the other.
Trust System "Legalized Robbery"
Just a word more in regard to the trusts.
| Some defend them on the ground that they
are an economic development, and that
| they cannot be prevented without great in
jury to our industrial system. This may be
answered in two ways. First, trusts are
political development rather than an
| economic one: and, second. the trust system
cannot be permitted to continue even
though 1t did result in a net economic gain.
| 1t is political because 1t rests upon the cor
alton, and the corporation rests upon a
statutory foundation. The trust. instead of
being a natural development, is a form of
| legaliZed larceny, and can exist only SO
| long as the law permits 1t to exist. That
| there is an economic advantage in produc-
| ton on large scale may be admitted, but
because 1.UO,OW yards of cloth can be pro-
duced in one factory at a lower price per
yard than 100000 yards can be produced in
| the same factory. it does not follow that
cloth would be produced at a still lower
| price per yard II all the cloth consumed in
the United States were produced in one
factory or under one management.
There is a point beyond which the eco
nomic advantage of large production ceases.
The moment an industry approaches the
position Of a monopoly it begins to lose in
economic efficiency. for monopoly dis
courages invention. invites deterioration in
quality and destroys most potent factor
In production-viz, individual ambition.
But the political objections to trust
overcome any essential advantage which
it can possibly have. No economic advan-
tage can justify an industrial despotsm OF
compensate nation for the loss of indie
pendence among its producers. Political
liberty could not long endure under an in
dustrial system which permitted a few pow
erful magnates to control the means of
livelihood of the rest Of the people.
Democracy and Socialism.
"Landlordism, the curse of Europe, is
an innocent institution in comparison
with the trust, when the trust Is carried
to its logical conclusion. The man who
argues that there Is an economic ad-
vantage in private monopoly Is aiding
socialism. The socialist asserting the
economic superiority Of the monopoly.
insists that Its benefits shall accrue to
not be denied If the superiority of mo-
nopoly is admitted. The democratic party,
If I understand its position, denies the
economic as well as the political advan-
tage of private monopoly, and promises to
oppose It wherever 1t manifests itself. 1t
offers as an alternative competition where
competition Is possible and public mo-
nopoly wherever circumstances are such
as to prevent competition.
Socialism presents a consistent theory
but theory which, in my judgment. does
not take human nature into account. Its
strength Is in Its attack upon evils the
ness is that 1t could substitute a new dis
ease-if not a worse one-for the disease
from which we suffer. The socialist is
honest in the belief that he has found
remedy for human ills. and he must be
answered with argument. not with abuse
The best way to oppose socialism is to
remedy the abuses which have grown up
under individualism but which are not a
nee essary part of individualism, and the
sooner the remedy is applied the better.
LAS was leaving home I set forth my
reasons for opposing the socialist doc
trine that the government should own
ard operate all the means of production
ard transportation; my observations dur
ing the past year have strengthened my
convictions on that subject. Because am
anxious to preserve individualism I am
earnest in my desire to see the trusts ex-
terminated, root and branch, that the
door Of opportunity may be open to every
American citizen
'On another occasion I shall call atten-
tion to the rapidly growing expenditures
OF the federal government. 1t Is natural
that those who look upon taxation as
blessing should view overgrown appro-
priations with complacency; yet even the
desire to find ways of spending the reve-
nues brought into the treasury by a high
,,-;R ,nf vxyhn NOT fnv