Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1912-05-27
Who WILL OWN
THE RAILROADS?
William W. Cook, Of Corpora
ton Fame. Has Some New
Thoughts on the Subject.
BY 3. c. FORBES.

BY 3. c. FORBES
NEW YORK, May IA man Of affairs.
we'll read, far travelled and a close stu
dent Of economic conditions at home and
IN foreign countries. sends q pamphlet
with the request that it be outlined and
discussed in this column. Its suggestive
title is industrial Democracy or Monop-
oily" \ Plan for the Public Ownership of
'ur Railroads. BY Public is not meant
government ownership. The author is
somebody in the corporate field. to wit.
William W. Cook. of Cook on Corpora
tons fame. The subject treated is time
ly. for just A few years ago appeared the
announcement that the railway president
and labor representative selected to ap-
point other five members OF commission
90 arbtrate the engineers dispute can not
agree. SO that government officials will
have to choose the other arbitrators
The future control and mana cement of
American railroads is unquestions bly, one
If the sravest problems confronting the
nation Are we drifting toward govern
ment ownership OR can that he avert
cd II SO. how
Mr., Cook, unlike most critics of current
conditions proffers solution. Before
commenting thereon let us explain his
proposal
Which shall control the railroads
shall men allow their employers (the
corporations) to be controlled by capital
in few hands or shall men be free and
capital he subject to their control, direct
~ or ndirectly2 Mr. Cook asks The
downfall of the Roman republic occurred
when the privileged classes absorbed the
nations wealth. How will il he in our
own republic?
The issue is Socialism or Not?' Mr..
Cook contends
Here is MI. Cooks plan, which will
combine the advantages of capitalistic or
ganization and monopoly with the advan-
tages OF a widely diffused control
"T propose that the control of the (rail-
road stocks of our country be taken from
these security holding institutions OF wan
Street and placed in the control of Sc
curitv holding corporation administered
for the investing public of the united
States.
For doing this propose the following
method Congress should incorporate a
railroad holding company, with a capital
stock If twenty-five billion dollars. 1t
has clearly the constitutional right to 90
ms. III 'iie ei'ai ~ the highest
me nrs' On .4,tian chosen from
different parts of the country. They could
no elf-nerpetuating The dividends on
the stock could be limited. say TO . per
cont Those dividends could be guaran-
iced bv the Federal government. In con
sideration Of the guaranty, all surplus
nrofits over the ; per cent could oN 'ne
torn,e NJ the charter go to the govern
,,,l,
a-r,Is boldins CORPORATION could easily
no made TO acquire by purchase or con
demnation the control of all the railroads
~ The country besides providing funds
for the future extensions and improve
ments of the railroads
90,
The money deil g" ''"
needed OF we h"'o''e AL IN
cent guarauteea s'o'" ,.,.,,.I.o, mr.
buy the railroad STOCKS On ','e ~ IA,
at private sale oF.pS No',{' ~, ,.ai1
Of the FIVE blliien var Na'u' a,,,4o ,1,,,-
road stocks Wouio :. a., =.
trolling majority OF the FaHroad STOCKS ~
this country en- man 'oauS pi az 10y
control our fahfoad lra4SloI dl'op ~" an
actual majority OF tnelr Sloch "oulu cos'
less than billion ana nan OF doildIs
The holding conpanN's stock would be
ooua1 to = United states bond, or English
-, ~ t-rorcb repte =" vouId he used
c"l'so, oi LA ~ ,,soI i,
as basis Tor CURRENCY Coulu ne useu III
shares as an investment torthe poor and
others. and would be equivalent TO a
,'s.t1,,,i so,.i,gs ham, for millions of peo-
ia .o"al -" mss
pie.
- -, 800
Each stockholder WodlN nave put 'ile
vote
n the charter OF the proposed rsllfoad
botdins comnanv for the United states
- n. 49, t,.a,,t,.-6,-e directors
naihcu 'ue III w W. -.
men of character chosen from dlnereh'
parts of the countrv-and gave them pow
c, 10 elect their Successors. subject to the
-, 80 ~ ,,rosidart of tho United
approval " '"e ~ eSiue,'' - 49, ~
states. IN case OF ,dealh' resignation OF
removal for cause Wall Street would get
its nrooer representation and no more 1t
at da,ainota II further check
No"l" n.y. a,a,.i,,, - airoators
might require the approval of the United
STATES senate as well as that of the pres
;i,,,. If tbot safaeuard against the can
~ a
II ethc plan1 would not impair the eff