The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1916-12-12
Government Would Never Buy
Stocks and Bonds.
PHYSICAL VALUATION ONLY
On This Basis the Government Might
Take Over Railroads-Race Issues In
South and West-kahn's Big Ma
iority In CaIifornia-Bigser Rural
Credits Wanted.

BY ARTHUR w. DUNN.
Washington, Dec. 12.-[SpeciaL J.
While there Is SO much talk about row.
eminent ownership of railroads going
around, a very strong statement made
By Senator Cummins will give owners
of such properties uneasy moments.
At the railroad hearing Cummins was
making a point against watered stock.
and he said very pointedly that In case
there vas any movement to acquire
the properties that they would be TAX
at their physical valuation instead
OF the capital represented by stock Is
sues and bonds. Physical valuation
means just what the properties are
worth. not what has been invested In
them In one way or another.
Several times It has been said that
many railroads would like to sell their
properties to the government, but not
many roads would want to sell on the
value OF the roads, but would want the
value OF the stocks and bonds.
The immigration Bill.
1t begins to look as II the immigra-
ton bill might be one of the ~leftovers
when congress %adjourns. The fact that
President Wilson Is opposed to 1t
makes 1t difficult to get up much inter
est In 1t. Everybody knows that a
Democratic congress is not going to
pass a bill over the veto OF a Demo
cratic president who has just been re-
elected. And the query Is, why waste
time with a bill that cannot become a
law7 The bill may be crowded out by
other important MEASURE
Race Issues and Politics.
There Ia a disposition among south
ern men to find a cause OF unification
politically between the south and the
west on ace questions. I'VE OF the
south have our race question, and the
people OF the west have theirs" re-
marked a prominent southern senator.
One reason why there is a sort Of fell
low feeling between those sections Is
on account Of the race problems with
which they have to deal. Our people
are going to settle their problem In a
manner best for all concerned, and we
are inclined to let the western people
handle their race problem as best they
can and In a manner which is best for
their civilization"
Many of the most anti-militarist
southerners were ready to fight when
japan undertook to impose her people
upon California contrary to the wishes
OF that state.
A Phase Of the Railroad Problem.
One suggestion to solve the railroad
problem Is to provide national incor-
poration, national supervision OF all
roads, enlarging the interstate com
merce commission to handle all rail.
road questions and to have no state
control.
The interstate commerce commits
sion could never handle a tenth Of the
cases." remarked former Senator Bris-
tow of Kansas. who has been attend
Ing the hearings. There are more
than a hundred commissions now deal
ing with these various questions.
Think what would happen II they were
all dumped upon n national body"
kahn's Big Majority.
julius Kahn was reelected In one of
the San Francisco districts by more
than 41.OO0 majority, but even that
does not make julius happy. His dis
trict was carried by President Wilson
in spite Of all he could do, and the
fact that California elected Wilson Is
a very sore point with California Re-
publicans. OF course Kahn knows how
1t happened, how Hughes visit hurt,
how the ignoring Of Governor Johnson
affected votes; also how the sending
Of certain speakers into wrong dis
tricts made the voters feel. Alto
gether the California men feel that
success was kicked away In their state.
Our Dual Government.
We find state lines interfering with
nearly everything the government
wants to do. The police powers Of
the statsyY Ntsnd In the way OF more
reforms than N>~sssStng else. Thus In
dealing with cold storage, the excessive
prices demanded by food combinations,
the n In which corporations are
managed and, In fact, save for the In.
terstate commerce clause Of the consti-
tuition, the United States IL almost
powerless to do what 1t wants to help
the people In times such as these. The
dual-that Is, state ard national-gov-
ernments form the most interesting
topic of discussion when any impor-
tant question arises.
Rural Credits.
We thought we passed a very ex
cellent rural credits law" Congress-
man Sims said at the railroad hear
ing. ~ voted for 1t and felt satisfied.
It provides that money may be loaned
up to 80 per cent Of the valuation Of
the farm. A follow down in my dis
trict said 90 per cent was not enough;
that Il ought to be 50 per cent. He
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