The Brattleboro reformer. (Brattleboro, Vt.) 1907-1912, 1907-03-08
GOVERNMENT OWNERSHIP.
Senator Patterson Thinks Rate Law
Will Not Give Relief.

Predicting that government ownership
of railroads will be an accomplished fact
within the lifetime OF present members
of the senate, yet not anticipating speedy
action in that direction, Senator Patter-
son of Colorado recently made an ex-
haustive presentation OF the subject IN
advocacy OF government ownership. Mr..
Patterson's remarks were predicated on
bill recently introduced by him, pro-
viding for the acquisition of the railroads
of the country by the government.
! Regardless of the efforts of congress to
regulate the rates, ''the powers and pur-
poses of the great railroad combinations
| have not changed asserted Mr.. Patter-
son. They have increased in power and
aggressiveness and in utter Indifference to
public rights" The railroad rate law
he regarded as presenting little promise
of relief This legislation. he commended,
was forced on the railroads by the pres
sure of public sentiment and when it be-
comes plain TO the people that no re-
| lief has resulted the same pressure will
accomplish government ownership. Mr..
| Patterson quoted the supreme court that
"a railroad is public highway, and none
the less so because constructed and main
tanned through the agency OF a corpora
| tion deriving its existence and powers
| from the state. Such corporation was
| created LOT IiuDuC purposes. IL PERFORMS
function of the state" Upon the fact
that railroads exercise "a function of the
government" he said. depends the rights
of the people with regard to the owner
shin and operation OF the roads.
Mr.. Patterson presented a table show
ing the attitude of Ga countries toward
| railroads. In these gov eminent ownership
obtains to greater or less extent in
SO, and is exclusive in 20. Private own
ership obtains in 49, and is exclusive
in FIVE. This Mr.. Patterson said, shows
that the construction and ownership of
railroads is really the business OF gov
ernments, and three-fourths of the de-
mocracies and two-thirds of the mon
arches Of the world own railroads.
The United States government, Mr..
Patterson maintained. could acquire exist
ing railroads by condemnation proceed
inrs under the post-road clause. He sup
ported this contention also by supreme
court decisions Not only the roads. but
their corporate franchises, he said, could
he thus acquired by condemnation. As
to conversation. Mr.. Patterson contend
ed that the stock and bond holders of
the. road; ought to be paid full value for
their holdings. The full value for all
American roads he placed at between
sll 900, 100000 and $4,000, 100000. His
suggestion for financing the governments
purchases of the roads was by a mort
gage backed by government guarantee,
which would work out by having stock
and bond holders exchange their holdings
for government bonds. He believed this
exchange would be so attractive as to
secure to the government practically all
private railroad holdings.
The idea that government ownership
would result in political machine by
the combination of employees was secuted
by Mr.. Patterson At the outset he
suggested no radical change should be
made in methods of management Rates
should be fixed by the interstate COM
merce commission. a division of transpor-
tation should be established to conduct
the actual operation of the roads. The
reforms that would follow would be large
economies to the freight shipper and re-
duction of the passenger rate by one-half.
1t would permit of extending the pos
tai system and establishing postal ex-
press 1t would guarantee the abortion
of all known safety appliances and the
best signal systems. Service pensions
would he paid employees, and new and
needed lines could be built. Railway poll
tics would be abolished and equilibrium
of power between the state. the govern
ment and the people restored. Reforms
in rate-making by adopting the zone sys-
TEN. and in freight Classification would
result. Government ownership need not,
he said, prevent private construction of
roads.