The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-03-24
FEDERAL CHARTERS.
wOuld Government Ownership Rem.
der Them SupernuOus?

seem tnat the occasion Tor suCn Cndr-
ter disappears. II railroad lines In
this country are to be owned and
operated by the Federal Government
there IL no more reason for the M
ployment Of an Incorporated instru-
mentality for such ownership and
operation than there Is that a like
agency should be utilized In connec-
ton with the postal service.
Under existing Federal statutes, and
certainly under any additional !egis-
lat!on which has for it's object the in
corporation OF interstate carriers. the
super vision and regulation of the BUSH
Tess and affairs Of such carriers would
he determined and prescribed with
much detail. hui II the effect Of such
regulation should be to determine and
control the Internal management and
policy Of the corporation through the
selection of those to be charged with
such matters. this would amount to
the exercise Of such inherent and
fundamental rights of ownership az
would practically amount to Govern
ment ownership.
In this respect and to this extent
the views advanced In the letter OF
"Civitas" appearing In THE L OF
March II should not he commended.
Ills proposal Is that the Federal In
corporation law should vest the Fed
eral railroad board with power ito
vote all stock at the annual elections
OF such Federal companies this en-
abling the Federal authorities to
choose the board Of directors Of every
such corporation. and in this n
control and dictate the appointment 81
all executive and operating officials.
Every argument which may be adj
vanced against Government ownership
its instability. political influence. en-
travagance. &c.-may equally we'll be
urged against such a proposal. All
esprit de corps in h management.
all incentive and ambition on the part
Of subordinate officials. AZ well d. their
sense OF obligation to those higher in
authority. would he destroyed. OF
what avail would be years Of faithful
service and loyalty n, with "A change
In political conditions. all these counted
for naught and political eNpedience
should be considered a. the proper
criterion and test for recognition and
promotion? And would not such he
the case even under an administration
bossting OF high morality and self
dedicated 10 the cause Of righteous
ness and all the virtues?
The present Postmaster of New York
city has risen from the ranks and
spent the best years of his life in the
Postal Department OF the Government.
No question Is raised a. 10 his eff
cheney and experience; his integrity.
industry and loyalty are not Ques-
toned. The beneficial example Of his
legitimate advancement would ordi-
narily furnish a stimulating influence
yet II is ommon rumor that the Gov
eminent intends to dispense with his
services and to replace him with some
one. not more efficient or experienced
or trained in the peculiar business OF
which he has been charged, but lever
the!ess more serviceable to the Ad-
min!stration on accoun Of his politi-
cal proWess and influence. II may be
that the new appo!ntee will be a dis
tinguished scholar. a noted physician
a celebrated artist. a thorough lawyer
a successful manufacturer. a prosper
ous farmer or an orulent brewer, but
none OF these qualities IL regarded IN
connection with his selection, but
rather the services performed 10y him
in the past or expected oi him in the
future in the interest OF his politica
party and It's leaders. The selection
hy n politically appointed board OF
directors Of a railroad company Of q
president to manage is AFFAIRS and
operate its property IL a possibility
which cannot be contemplated will
eGuanimity by the travelling or ship
ping public.
But aside from this view 81 The
question. IL private investment in the
stocks OF railroad corporations is cx'
pected and invited. the private owner
ship of such companies must result
and by this IS meant an ownership II
fac, and not merely in name.
One of the necessary attributes %
ownership of property through cor
porate organization is the right Of Thu
owners, namely the stockholders. q
control the policy adopted with respec'
to such property through the selection
Of directors or trustees Of their OWL
choosing. And this voting power |,
not an empty right. True, II has h"er
abused and also has been Care!esslN
and n~eg.!gcntly exercised. So also ha'
the citizen franchise on many &C
c~asions. but the power u right con
tinues az a sword as Hcll as n shield
and its impelling Influence has beer
effectively demonstrated A. well II
corporate a. In Government affairs.
Corporate voting, II Is objected, 81
dome by proxy So is voting for IN
President and Nice-president OF tn
United States. In the former ease
however, the names OF the proxies arr
usually better known and are custom
arily representative Of "A well define'
policy and a platform more stahl
than the political article which bear
that name,
In tho railroad world there has bee,
q recent striking illustration ~ tn
Effectiveness of proxy voting. \ rail
read corporation managed and con
trolled largely through proxies fo
many years fell not only into tinanCia
difficulties, hut also Incurred plhl'
uisapproVal. It's management wa
criticised ~ inefficient, c~NtraVagiu
and unreliable. and certain of its ON
GERS and directors were condemned n
responsible for the situation alleged l.
exist. What was the result? An IN
dependent party. entirely d~isconncctc'