Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-02-28
URGED BY PATTERSON
GOVERNMENT OWNERSHIP or
RAILWAYS ADVOCATED.
Exhaustive Presentation Of the Sub
ject by the Senator From
Colorado.

Predicting that government ownership Of
railroads will be an accomplished fact with
In the lifetime of present members of the
Senate. yet not anticipating speedy action
| In that direction. Senator Patterson Of COL
orado yesterday made an exhaustive pres
entation Of the subject in advocacy of gov
eminent ownership. Mr. Patterson's re-
marks were based on a bill recently intro
duced by him providing for the acquisition
of the railroads of the country by the gov
eminent.
Regardless of the efforts of Congress to
regulate the railroads, 1.-The powers and
purposes of the great railroad combina-
lions have not changed" asserted Mr.. Pat
terson. They have increased in power
and aggressiveness, and In utter indiffer-
ence to public rights"
The railroad rate law he regarded as pre-
senting little promise of relief. This legis-
lation, he contended, was forced on the
railroads by the pressure of public senti-
ment. and when 1t becomes plain to the
people that no relief has resulted the same
pressure will accomplish government own
ership.
Mr. Patterson quoted the Supreme Court
that "a railroad Is a public highway, and
none the less so because constructed and
maintained through the agency of a corpo-
ration deriving Its existence and powers
from the state Such a corporation was
created for public purposes. it performs
function of the state"
Upon the fact that railroads exercise "a
junction or the government he SAID de-
pend the rights of the people with regard
to the ownership and operation of the
roads.
Governmental Owned Railways.
Mr.. Patterson presented a table showing
the attitude of sixty-four countries toward
railroads. OF these government ownership
obtains to a greater or less extent in fifty
nine and is exclusive in Twenty-Five. Pri-
vate ownership obtains in thirty six and Is
exclusive in five. This, Mr.. Patterson said
shows that the construction and ownership
of railroads is really the business of gov
ernments. as three-fourths of the democra-
cies and two-thirds of the monarchies of the
world own railroads
The United States government Mr.. Pat
terson maintained, could acquire existing
railroads by condemnation proceedings
der the post-road clause. He supported this
contention also by Supreme Court decisions.
Not only the roads, but their corporate
franchises, he said, could thus be acquired
by condemnation.
AS to compensation, Mr.. Patterson con-
tended that the stock and bond holders of
the roads ought to be paid full value for
their holdings. The full value of all Amer
lean roads he placed at between eleven and
twelve billion dollars. His suggestion for
financing the government purchase of the
roads was by a mortgage backed by gov
eminent guarantee, which would work out
by having stock and bond holders exchange
their holdings for government bonds. He
believed this exchange would be so attrac-
tive as to secure to the government prac-
tically all private railroad holdings.
Method Of Operation.
The idea that government ownership
would result in a political machine by the
combination of employees was secuted by
Mr.. Patterson. At the outset. he suggested,
no radical change should be made in meth
DDS Of management. Rates should be fixed
by the interstate commerce commission; q
division of transportation should be estab-
lished to conduct the actual operation of
the roads.
The reforms that would follow, he said.
would be large economies to the freight
shipper and reduction Of the passenger rate
one-half.
He claimed that it would permit of ex-
tending the postal system and establishing
a postal express and would guarantee the
adoption Of all known safety appliances
ana the best signal system. Service pen
sions would be paid to employees, and new
and needed lines could be built. Railway
politics would be abolished and the equilb-
rum of power between the state and gov
eminent and the people restored
Reforms in rate making by adopting the
zone system and in freight classification
would. he claimed, result. Government
ownership need not, he said, prevent private
construction Of roads,