Atlanta Georgian., 1912-05-27
WHO WILL OWN
THE RAILROADS?
William W, Cook, of Corpora.
ton Fame, Has Some New
Thoughts on the Subject.
BY 8. c. EoRaEs.

BY 3, c. FORBES.
NEW YORK, May 27.--A man of affairs,
we'll read far travelled, and a close stu
dent of economic conditions at home and
in foreign countries, sends a pamphlet
with the request that it be outlined and
diseussedzin this column. Its suggestive
title is Industrial Democracy or Monop-
oily? \ Plan for the Public Ownership Of
our Railroads" BY Public" is not meant
government ownership The author il
somebody in the corporate field, to wit.
William w Cook, of Cook on Corpora
tons" fan1e The subject treated is time
", 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
10 arbitrate the engineers dispute can not
agree. SO that government officials will
have to choose the other arbitrators.
The future control and management of
= American railroads is unauestionably one
of the gravest problems confronting the
nation. Are we drifting toward govern
AL-ncnt ownership? Or can that be avert
cd? If SO. how?
Mr.. Cook unlike most critics OF current
a conditions, proffers a solution Before
commenting thereon let us explain his
proposal
Which shall control The railroads.
corporations to be controlled by capital
in a few hands, or shall men be free and
capital be subject 10 their control, direct
ly or indirectly? Mr.. Cook asks. The
downfall of the Roman republic occurred
when the privileged classes absorbed the
nations wealth How will ii be in our
own republic?
The issue is Socialism or Not?" Mr.
Cook contends
Here is Mr.. Cooks plan, which Will
combine the advantages OF capitalistic or
eanization and monopoly with the advan-
ges of a widely diffused control
Il propose that the control of the Crail-
road stocks of our country be taken from
these security holding institutions OF Wall
Street and placed in the control OF Sc
curity holding corporation administered
for the investing public of the onited
States.
For doing this l propose the following
method: Congress should incorporate
railroad holding company. with capital
stock of twenty-five billion dollars. II
has clearly the constitutional right 70 40
this In the charter, congress could name
the first directors-men OF the hlgnest
character and reputation, chosen from
different parts of the country. Ihey couio
he self perpetuating. The dlVldehos oh
the stock could be limited. say to 3 per
rent Those dividends could be guarah-
teed nv the Federal government. In CON
sideration Of the guaranty, all surplus
nroets over the per cent could by the
torns of the charter go to the govern
| ment -.
This holding corporation could easily
- : made to acquire by purchase or con
emnation the couIrob of all the railroads
N the country. besides providing fonds
or the future extensions and improve
4 ments of the railroads
The money derfYep FT@9 the sale as
needed. of the holding companyS . pee
" cent guaranteed steekY WOULD be, uSea 70
INV the railroad stocks on the MARKET or
at priyate sale or by condemnation IAN
of the FIVE billion--par value-of our rali-
road stocks would give an absolute con-
trolling majority Of the railroad STOCKS in
ttis country. Ten main roads practically
control our railroad transportation ana an
actual majority OF their stock would cost
less than billion and a half Of dollars
'rhe holding companys stock would be
eoral to a United States bond, or English
consol or French rente," would be used
as a basis for currency, could be used in
shares as an investment for the poor and
others. and would be equivalent to a
national savings bank for millions of peo-
pie"
Each stockholder would have but one
vote.
n the charter Of the proposed railroad
holding company for the United States
named the first twenty-five directors
men of character, chosen from different
narts of the countryland gave them pow
IL fnf he
approval of the president Of the United
states, in case of death, resignation or
removal for cause, Wall Street would get
its proper representation and no more It
wotlld not dominate. If further check
we're desired the election of directors
might require the approval of the United
states senate as well as that of the pres
iden II that safeguard against the cap
italistic contra be doubted, the recall" Of
directors by vote of the stockholders
would be modern remedy.
Ii Cthe plsn) would not impair the eff
cheney of the present railway staff be-
cause the present railroad corpora tiQns
would be continued, the present officials
} and employees and mode of selection. pro-
motion and organization. retained, with no
government officials to interfere
And il would give advantages which
government ownership could not give. Il
ould mean the avoidance of vast ma
& konal debt and A railroad deficit to be
ade up by taxation; the preservation of
ne Institution OF private ownership Of
railroad property: and "a more efficient
management of railroads than any gov
ernment ownership ever did or ever could
give. i is the utilization Of the corporate
Idea which has proved such an Aladdin's
lamp for modern industries. II is avoiding
government ownership by keeping the
property out of the hands of ignorant
voters and politicians. It will prevent the
great republic laundering on the division
Of spoils II is not Socialism it is not
government ownership: il is not even di-
rect governmental controi and it is abso-
lutely practical 1t would nationalize rail
roads without political agitation and with
out costing the national government a
dollar
hardly think SO, Another column will
be devoted TO discussion of the whole
subject