Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1912-05-28
COOKS SCHEME:
HAS ITS FAULTS
PubIiC's Attitude Toward the
Railroads Is Undergoing
Steady Change.
ey g. c. FORBES.

bllhon dollar holding company" 70 con-
troll the railroads of the United States.
under the plan drawn up by Mr.. Will
liam w. Cook and outlined here yester-
day, is at first glance alluring But the
more the proposal is studied. the greater
and graver are the objections that spring
TO mind Many of MIR. Cooks statements
would seem to call for modification in
ciew of recent events Let me try to
comment briefly on some of them
The issue. he affrms is Socialism or
Note" 7 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
roads and can force them to move in
whatever direction is desired?
Already the public clanor against the
railroads has in large measure subsidized
Indeed, the public are today complaining
ess han are the railroad arrangements
Decision after decision has been handed
down aag inst the transporta ton 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
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 managers as from
the general public
Railroad regula ton, in otner words. has
become very effective. It is no longer
toothless. innocuous mere theory II
is offering strong. insurmountable bar
rlers against practices which used to
arouse the public's 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 $4,000 900 combination. therefore.
IS not urgently necessary TO rescue the
country from socialism Moreover, such
plan does not appear feasible To
begin with the 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 an expert
ment on scale never before attempted
by any natiou--that investors would in
All proba bility prefer to hold aloof not
wthstandng The government guaranty
Is the claim that the plan would not
impair the efficiency of the present rail-
way STAFF ncontrovertibe? Can ii be
seriously argued that railway officials
barred from earning for stockholders
above certain fixed percentage would
produce the results attained under exist
ing corporate ownership? Would not part
Of the present incentive be removed?
Would not initiative be dulled? Would
not numbers of our abest railroad men
10 whom moneymaking is not the first
consders ton quit rather than be sub
jected to the new form Of domination?
The project would be revolutionary,
no matter how carried out. If the rail
roads were to be slyly picked up when their
securities were depressed, there would
be increasing uncertainty in investment
circles. for the owner of shares paving,
say, per cent would never know the
moment he might be informed that his
dividend would be cut 10 the 3 per cent
rate-a matter of infinite importance.
Or. il properties were 10 be acquired by
condemnation topsy- turvydom would
reign Mr. Cook says OF Socialism: ut
is the direct antithesis of the Anglo
saxon idea that whatever man honestly
ACQUIRES becomes his own. to dispose of
demnation procedure square with the
clause | have put in black letters?
Railroad management in America has
been lifted from the speculative mud in
which it was wont to disport. 1t is
cleaner now 1t is watched closer It
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 sanction
FINALLY. the capitalists who WELD ire
rendous power over our railroads at
least realize that they can not snap their
fingers at public sentiment The old au-
tocratic. brutal attitude has been dropped.
Warning has been given that the people
will assert themselves as masters of the
situation. and that If drastic measures
become necessary action win be taken.
The constant increase in the number of
citizens holding railroad stocks can have
bnt beneficial influence. And surely the
reformed currency system should go some
vav toward correcting the evils Of con
centr3ted capital-eviis that constitute
danger to the orderly continuance Of the
republic
Capital is on trial II knows that if it
docs not act souarey vengeance will be
taken in one form or another. For the
nresent. however. the suggested twenty
ave bnlion-dollar holding company and
other schemes for naturalization can be
held in allegiance, don't you think?