Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1912-05-28
COOK 5 SCHEME
HAS ITS F ULTS
Publlc'S Attitude Toward the
Railroads Is undergoing
Steady Change.
Nv 8. c. FoRgEs.

billion dollar holding company TO con-
troll the railroads of the United States,
under the plan drawn up by Mr.. VIII
liam W. Cook and outlined here yester
day, IS al first glance slluring. But the
more the proposal is studied, the greater
and graver are the objections that spring
TO mind. Many of Ny Cook s statements
would seem to call for modification in
cew Of recent events. Let me try to
comment briefly on some Of them
The issue. he afarms, is Socialism or
Not I do not think so Is it not true
that the government, through the inter
state commerce commission, has at last
placed the bit in the mouth OF the rail-
F2ads and can force them to move in
tAatever direction is desired?
Already the public clamor against the
railroads has in large measure subsidized.
Indeed, the public are today complaining
less than are the railroad mana gements.
Recision after decision has been handed
Gown aginst the transportation compa-
MES and very few in their favor. The
interstate commerce commission certain
~ can not be accused Of showing favorit-
ism toward the companies, The latter
have repeatedly complained that the com
nlissioners regard themselves more as
the champions of shippers than as i'm
partial judges. So uncomfortable have
numbers OF roads been made that any
appeal for government ownership is as
likely to come from the mana gers as from
the general public
Railroad regulation. in otner words has
become very effective. 1t is no longer
Is Offering strong. insurmountab BILE bar
riers against practices which used to
arouse the publcs ire Therefore. the
present conditions have not become i'm
possible or intolerable from the public's
point Of view An era of fairer play has
been opened up
The $4,000 600 combination. therefore.
Is not urgently necessary 10 rescue the
country from socialism. Moreover. such
. plan does not appear feasible To
begin with the 3 per cent guaranteed
stock proposed would not find a market
\ substantially higher rate Of dividend or
interest would have TO be paid Even
then the scheme would be so much IN
the nature OF an experiment expert
ment on A scale never before attempted
by any nation-that investors would in
all proba bility prefer to hold aloof not
withstandug the government guaranty
Is the claim that the plan would not
impair the efficiency OF the present rail
way staff incontroyertble? Can it be
seriously argued that railway officials
barred from earning for stockholders
above a certain fixed percentage would
Pkoduce- the results attained under exist
9lfg corporate ownership? Would not part
or the present incentive be removed
Would not initiative be dulled? Would
-7r-s-Bdmb ers of our abest railroad men
TO whom neneymaking IS not. the first
quit rather lhsn be sub
'iected 10 the new form of domination
Fhe protect would be revolutionary,
no matter how carried o6t II the rail
roads we're to be slyly picked up when their
securities were depressed. there would
be Increasing uncertainty in investment
circles. for the owner OF shares paying.
say per cent would never know the
moment he might be informed that his
dividend would be cut to the 3 per cent
rate a matter Of infinite importance.
or. il properties were to be acquired by
Condemnation topsy- turvydom would
reign Mr. Cook SAYS Of Socialism: 1T
s the direct antithess Of the Anglo
ACQUIRES becomes his own. to dispose of
as he sees fit" How would the ocn-
demnation procedure square with the
clause I have put in black letters?
Railroad management in America has
been lifted from the speculative mud in
which it was wont to dsport. 1t is
cleaner now 1t is watched closer. 1t
has to keep within bounds prescribed by
governmental bodies. The public are no
longer absolutely defenceless. They have
driven the railroads out of politics. They
are gradually demanding that no new
securities be issued without governmental
Federal or state-sancton.
Finally the capitalists who WELD ire
mendous power over our railroads at
least realize that they can not snap their
fingers al public sentiment The old au-
tocratic. brutal attitude has been dropped,
Warning has been given that the people
viii assert themselves as masters OF the
situation. and that If drastic measures
become necessary action will be taken.
The constant increase in the number of
citizens holding railroad stocks can have
but beneficial influence And surely the
reformed currency system should go some
hwav toward. correcting the evils OF con
'centrated capital evils that constitute
danger 10 the orderly continuance Of the
-.l.s4slblic.
captal is on trial 1t knows that if it
sloes not act sQusrely vengeance win he
taken in one form or another. For the
presept. however. the suggested twenty
Eve billion dollar holding company and
other schemes. for ma naturalization can be
held in allegiance. don't YOU think?