The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-03-21
CHARTERS.

and desirabiity 81 Federal incorpora-
ton Of railroads.
This Congress will do nothing, on
account Of the war and the Presiden-
tial election, but the g Congress Will
act. In fact the commission now be-
ing appointed by Congress is to report
by January 8. 1917.
A change is In the All. Commits
sion rule. state and national, has
broken down and the railroads have
got to have 1000 900. 900 a year for
terminals. extensions and improve
ments. and they cant get II. MIR.
Prouty Of the Interstate Commerce
Commission In an address at Washing
ton. December 2S. 1915. said:
This is the poin, at which regulation
will break down II at ali. Can private cap
itsi be induced. under the treatment which
Is accorded that capital by the regulating
body. to invest? II Government owner.
ship ever comes In the United states II
wili probably be because private capital
cannot be obtained In sufficient amounts to
afford an adequate service.
The committee Of Congress that Is
being appointed will hear all sorts Of
theories. protests, demands and free
advice. State commissions will rise
from their seats and solemnly declare
that II we have Federal railroad incOr-
porations down the country.
| Much better that they continue to hurl
their thousand and one barbed darts
into the goaded railroads. Federal
railroad interpretations would put
them out of business. and with them
would go two cent laws. full crew laws
/ and various other choice assortments
OF laws. Railroad reorganizations
| would he simplified. Railroad fnanc-
| ing would be easier. Railroad officers
would sleep better. The railroad world
would go free.
/ But not 80 fast. Public opinion will
| not grant this great boon except at a
price. That price will be d still storner
| control of the railroads by the low
eminent by controlling the election Of
railroad directors by means Of a Fed
cral railroad board, which by the char
ter will have the voting power at rail-
road annual elections. Thc present sys-
TEN Of electing railroad directors Is
utterly discrctitcd. The stock holders
DO not vote except by proxy. and they
give those proxies to the insiders. So
far as elections are concerned the
stockholders are IA fraud. a humbug,
Il p%retence. a make believe. They vote
like a flock of sheep. following tho
beilwcthcr. The elections are u farce
and merely pcrpetuatc ne control of
a railroad oligarchy. who dominate
the company as though they owned IL
The result - writ large In scandals,
railroad bankruptcies. receiverships
and foreclosures. The Ratirdy Age
GaSctt.. the leading railroad IN per In
the country. recently said:
There l. no way to keep unsc-upulou
hnanciers out Of tho railway business
Their. IN u fragrant defect In the govern
ment ot !, country whose laws permit
man or a sct OF men TO acquire autocrSti
control OF a property BY any means eacep
actual purchase OF ~ least , majority In
t-rc-t IT, It with their own money.
Alton. Sev Haven. Frisco and som.
more; sui nov Rock Island. What next
Yes what next? The next will bs
to take tn, power ~ eleCting railroad
directors out of IN. dead hands of TIKI
stockholders and put that power In q
Federal railroad board. These rail
roads arr great national highways. u
= not right that they should be con
troilcd by private individuals They
are TIE rivers OF commerce. The!
should b. controlled By the public, act
, ing through a Federal railroad BOARD
! Again. not 50 fast. Another witness
; appears. the fine old investor. IA hi
.. language II plain.
80 you want 81 900 600 900 a year
, do ,ou?" he SAYS. What security III
: YOU Offer? have invested hundred
= Of millions In your railroads and yol
r have regulated the bottom out OF tn
;. Investment. You have killed the COOS
= that laid the golden .gs that's ms
l Nou have reduced rates ana neglected
expenses. ana yet you ave not a.
-. slmed a particle of financial RESPONSE
bi,,tv for tn" results. You now pro
pose Federal Incorporation. and ] an
h In favor of that heca Use it Will sto'
the guerrilla attacks az forty-.ich
u tltos. Neither hitNc | II objcc;!o
. to your proposed Federal %railroa
V, board voting my RAILROAD stocks. i
fact | don't Vot" anyway except ucC.i
~sionaliv by proxy, and then my pro>
4. Is voted ny u lot OF h~uccanecring In
n sidcr-, who have mauaged 10 seize IN
offices. with no stake N the entcrpr.s 81
That vote is no protection to me. an
am willing that sou vote my stoc
"a take absolute ccN'rol. You a.
ready ave practical control and No
might as well make II absolute. TIL
tail might az we'll go with the hid
= But when you do his yuu must be r.
4 sponsibie FOR ON return on my III
vestm.nt. You can't take the entlr
power and avoid all responsibility an
expect NE To furnish Ia billion dollar
a year on any such basis. II the Coy
u ernment viii guarantee me 3 per cen
4 a year and Civ me the right tn claii
an additional 3 per cent. If earned,
N will furnish 81 .0OO .00o 900 4 year an
" let the Government have al the prom
in excess of q per cent \ sure j T.,
cent. with a possible 4 per cent,
fair Ia me and cheap and safe for yo'
DO YOU know what the British Coy
,c crrm.nt has done: A. tho outhrea
70 of the war the British Govcrnmci
IS took over the railroads in the Unite
Kingdom and has been operating thel
ever since. by means OF an eNecuti,
committee composed of the gencr
managers of the railroads themselvc
In return the Government has pra,
y tically guaranteed dividends to u
railroad stockholders at the same ra
as before the war. The Goyernmci
ID takes an the receipts and pays all Il
- expenses. II Is Government Coutr
M with Government financial