The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1918-01-10
TO own
THE RAILROADS
Taking Control of the Roads by the
Government Means Ultimate Ow-
nership-says President Townley.
NATIONS GIVE OBJECT LESSON.


The Railroads Have Failed to Give
People of the Nation the Service
to Which They Were Entitled.
President Wilson's action in TAX
ing over the railroads means perma-
nent government ownership of the
nations transportation facilities If
the people show that they favor this
policy and bring sufficient pressure
to bear so that Congress will carry
out their demands, according to
President A. G.. Townley of the Ma
tional Nonpartisan league, who urges
all public ownership advocates to get
behind this program.
"The nation now has possession of
the railroads." said Mr. Townley,
"and the Presidents action is one Of.
the greatest forward steps we have
taken since the Civil War;. If, after
having had the railroads under public
control for public benefit, we volun-
tarily surrender them back to private
exploitation, we will be taking {.
backward step. l do not think the
American people want to take that
step. If public control of our trans-
portation facilities is good thing
in war time, it is also good thing
in time of peace. This, feel cor
fident, will be the verdict of the pet.-
pie.
president Wilson evidently was
moved by two things" Mr.. Towr-
ley continued. "First, the object les-
son of other nations; and second, tb>
utter breakdown of American rail-
roads,"
"Other nations have seen that a
nation is best served when it's trans
portation facilities are operated for
public service. Other nations have
gone further than this. Other nation.
are controlling the manufacturing and
distribution of all commodities neces
sary to the nations welfare. A ma
TONS welfare is the peoples welfar.
A nation is we'll off in the same pro-
portion that the mass of it's people
are we'll off. All of us in the United
States do, not seem to realizc that
yet. But ] think we will before long.
"Our railroads have been failing tD
give the nation the service to which
it was entitled. The breakdown is due
to overcapitalization. The purpose of
our railroads has been to pay divi-
dends-not. to give service. Our
railroads are operated by efficient
men. I do, suppose there are any
better in the world. But these oper-
ators have been under the direction of
financial 'nianipulators who demanded
dividends above all else. Public SER
vice was of secondary consideration.
Rolling stock, road beds, everything
else, have been sacrificed to dividends
on an excessive capitalization They
failed in peace, but war made their
failure more apparent. The president
did the right thing in taking them uD-
der government control.
.;"But why should the people be ask
ed to continue paying dividends ON
watered stock? The president pro-
poses that, the nation guarantee the
same net incomes as we're earned in
the three, year period before June
1914. Probably the President did
not think..it wise to go further u
this time. but I believe the people
Should take over these railroads for
all time and pay their owners only
what their property is actually
worth ~
"The railroads of the United States
are capitalized, roughly speaking AZ
$40, ,OOO, 100000. At least one half q q.
this sun-probably more-represents
| watered stock. Why should the pec-
ple pay for something that does not
| exist? Why should they pay divl-
dends and interest on something ina.
does not exist? 1t seems to me that
this is only putting premium upon
successful villiany and encouraging
future manipulation Of public utll-
ties. -
Furthermore, the interest and
dividends on the water in railroad
! stock-water that has probably beer
put away in the form Of private pro
fits-amounts to between $4O0, 0,OOO,-
/ 600 and $500,000,000 every year
That means a tax upon the average
head Of each family in the United
States amounting to $500 . year
And this tax does not 60 towards
furnishing more efficient railroad
service-it goes to the private enrich
ment Of stock gamblers and manipu-
lators.
j Moreover, In addition to elimiD-
i ating this unwarranted and arbitrary
tax, the people could save at least
/, $2OO, ,O0O, 900 q year by government
i operation Of the nations railroada
This would mean ! total saving q
nearly $700, ,000, 900 year. Yet -
| could make this stupendOus saving
| reduce freight nd passenger rates,
and maintain Of inGreass presen'
/ wages. u
'This i not merely prophsey q my
part ! base my statanents q -