The labor journal. [volume] (Everett, Wash.) 1909-1976, 1918-01-17

ing over the railroads means per
manent 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. C. Townley of the National Non
partisan League, who urges all pub
lie ownership advocates to get be-
hind this program
"The nation now has possession Of
the railroads." said Mr.. Townley,
"and the Presidents action is one
of the biggest forward steps we have
taken since the Civil war. IT, after
having had the railroads under pub
lie control for public benefit, we
voluntarily surrender them back to
private control for private eXploita-
ton, we will be taking a backward
step. | do not think the American
people want to take that step. If pub
lie control of our transportation fa-
cilities is a good thing in war time,
it is also a good thing in time of
peace. This, feel confident, will
be the verdict of the people.
Other Nations Object Lesson
"President Wilson evidently was
moved by two things Mr., Townley
continued. "First, the object lesson
of other nations; and second, the ut
ter breakdown of American railroads.
"Other nations have seen that
nation is best served when its trans
portation facilities are operated for
public service. Others have gone
further than this. Other nations
are controlling the manufacture and
distribution of all commodities neces-
sary to the nations welfare. A ma
tion's welfare is the peoples wei
fare. A nation is well off in the
same proportion that the mass of its
people is we'll off. All of us in the
United States do not seem to real
lze that yet But | think we will
before long.
Railroads After Dividends First
"Our railroads have been failing
to give the nation the service to
which it was entitled. The break
down is due to over-capitalization.
The purpose Of our reailroads has
been to pay dividends-not to give
service. Our railroads are operat-
ed by efficient men. l do not
suppose there are any better in the
world. But these operators have
been under the direction of financial
manipulators who demanded divi-
dends above all else. Public service
was of secondary consideration. Roll
ing stock, road beds, everything else,
have been sacrificed to dividends on
an excessive capitalization. Of course
the railroads failed under the stress
of war They failed in peace, but
war made their failure more appar-
ent The President did the right
thing in taking them under govern
ment control.
Why Pay on .Watered' Stock?
But why should the people be
asked to continue paying dividends
on watered stock? The President
proposes that the nation guarantee
the same net incomes as were earned
in the three-year period before June,
1914. Probably the President did
not think it wise to go further at
this time, but believe the people
should take over these railroads for
all time and pay their owners what
their property is actually worth.
"The railroads of the United States
are caitalized, roughly speaking, at
100000 100000. At least one-half of
/ this probably more-represents
watered stock Why should the
people pay for something that does
not exist? Why should they pay div
idends and interest on something that
does not exist? 1t seems to me
that this is only putting a premium
upon successful villainy and encour-
aging future manipulation of pub
| lie utilities
People Robbed of Millions
Furthermore, the interest and div
| idends on the water in railroad stock
water that has probably been put
away in the form Of private profits
amounts to between 100000, 900,
and $500,000,000 every year. That
means a tax upon the average head
of each family in the United States
amounting to $25 year. And this
tax does not go towards furnishing
more efficient railroad service -- it
goes to the private enrichment of
stock gamblers and manipulators.
Moreover, in addition to eliminat-