The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-12

Wv" iotoItibNiNfS.
or course. there is the resort of Gov.
erhment ownership. But the American
people don't want Government owner
ship. The arguments against II are
so familiar and So strong that they
need not be repeated here. Suffice It
to say that IL the American people can
hnd any other remedy they viii avoid
Government ownership.
There is another and better WAY. Tho
Dill low pending in Congress 70, an in
terstate trade commission should pro-
woe that the commission shall solicit
ana vote proxies at all elections of rail-
road corporations engaged in interstate
commerce In the United States. There
are three reasons why It should de done:
~. 1t is necessary. Turn out the
bankers and the money changers II YOU
VIII, but they will come back again I'M
less you substitute something better.
t2). IL is a duty. Already the Inter-
state Commerce Commission controls
railroad Income by controlling railroad
rates. Already the Government largely
controls railroad expenditures BY in
creasing railroad. wages through arbi-
trations. The Government appoints q
receiver upon corporate insolvency. All
this is power without Responsibility.
The Government should now assume the
moral responsibility of representing the
stockholders at corporate elections. II
having taken control OF corporate
finances.
tNote-President Rea OF the Penn
sylvania Railroad Company in his last
annual report says: 1T IL difficult To
escape the conclusion that some way
must be found whereby the serious but
divided responsibility of governmental
regulation Of rates. wages and other
railway matters shall either he con-
centrated under one administrative
branch OF the Government or the re-
suits OF legislative acts. orders OF com
missions and awards of arbitration
boards shall he recognized by rate regu-
latory commissions. 20 that regulation Of
tory commissions. so that regulation OF
WAGES, rates and other matters may con-
tinue without working a manifest injus-
tice to the railroads and those who hav,
Invested in their securities."1
tS. Ii is a wise policy. We are travel
ling Fast and far on the road tn Gov
erninent ownership. Already the Gov
eminent Is about To build railroads in
Alaska. In default of some better plan
such ownership will he extended To rail-
roads throughout the country. The
above proposed plan Of representing
stockholders by their proxies would lead
gradually ~ complete control because
public sentiment and the stockholders
would soon recognize the necessity of
lodging the responsibility in the hands
Of the Government. If Mt any time the
interstate trade commission should be
unfair in voting proxies the proxies
would no longer be given. or the COM
mission would be changed. Meantime
that amorphous mass of mult!dinous
stockholders scattered throughout the
world would have some one To whom
they could send their proxies. namely,
the interstate trade commission. The
experiment would be a safe experiment,
1t would complete the control which the
Interstate Commerce Commission now
has over the income and expenditures
OF the railroads, and would place the
moral responsibility for dividends where
II belongs. The whole plan could he put
into effect by inserting in the bill now
pending In Congress FOR the creation IF
an interstate trade commission TO take
the place of the present bureau Of cor
porations. an add!tiona! provision read
ing as follows:
THE commission is hereby authorized
and directed TO solicit and vote proxies
at all elections OF railroad corporations
engaged In interstate commerce in the
United States. and each and every MEM
Der OF the commission is hereby author
lied To qualify and serve. If elected. as
a director in any of said corporations"
This would be a step toward final
unity Of control--thc practical CONSOLE
dalton OF all the railroads, If you will.
The underlying tendency in America Is
caused consultations; 1t caused bank
ers' control. 1t is a tendency which no
political party can stop. The laws of
trade are stronger than the laws of men.
Unity Of control will dominate our in
dustries In the future as IL has In the
past
II may be checked or thwarted for
a time, but ultimately will prevail,
Whether such unity Of control be by the
old railroad kings or by bankers or by
the Government or By investors or by
combination OF all. such as practically
now exists in the reserve national banks,
is merely a question Of detail and policy.
Then would naturally follow one great
central corporation controlling all the
railroads Of several central great rail-
road corporations. similar TO the coming
TeklOudI n tbdhEt bFNoihV
sary In regard TO the banks and the
control OF money and credit. Did the
Government go into the banking busi-
ness and accept deposits and extend
credit? No. on the contrary instead of
the Government carrying on the bank
ing business. II Is about to create sew
eral great banking corporations TO carry
on that business. There Is no reason
why a similar policy should not be pur-
sued with the railroads, at present
adrlft.
Congress could incorporate four re
gional railroad companies" similar 20
the several regional banks" These four
regional railroad corporations could
gradually take over either the railroads
themselves or part or all of the capital
stock The stockholders Of those rail-
roads would be very glad 40 exchange
their present stocks for the stock of a
regional railroad corporation on rea-
sonable basis. This would finally result,
in the four regional railroad companies
controlling all the railroads of the coun-
try without Government ownership
Then the control of these four regional
railroad companies could h. by directors
consisting OF the Interstate Trade Com
mission. together with representatives
elected by the officers of the railroad