The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1918-01-10
HENEY IS AFRER
The BEEF TRUST
Government Ownership of Railroads
Will be the Great Issue in C3ngress
When the War Ends.
FARM BANKS FACES CRISIS.
Conspiracy to Wreck Federal Farm
Loan System il Freely Alleged by
its Friends.

Loan System is Freely Alleged by
its Friends.
1t requires no prophet to predict
right now that government owner
ship Of railroads is going to be one
of the big issues before the American
eeople when the war ends. President
Wilson has taken over the railroads
AS a wartime measure for the per-
iod Of the war-but a good many,
probably a majority of the people. Of
the United States, are determined
that the ~governement shall keep con-
troll of the railroads.
This is certain to precipitate.. a Bit
ter conflict in Congress. Progressives
will argue that private ownership Of
railroads failed, that it failed in every
other country just as it did in the
United States, and that public utilities
should be owned and operated by the
public for public benefit. But the
railroads controlled Congressman
and they are no small number-will
fight to the finish any proposal to have
the government buy the rail roads.
The railroads have failed from a
standpoint of service, but they have
been very effective in piling UP pri-
yate fortunes and those who share
or hope to share those fortunes will
be reluctant to surrender their instru-
ments Of exploitation. And if they
surrender-if public opinion forces
them to sell-they will endeavors to
take one last crack at the public by
selling at a highly inflated figure.
Here is where the real fight may
come in.
Few far-seeing students of affairs
expect to see the railroads go back
to private ownership. This would be
a backward step. But the railroads
may succeed in unloading their pro-
perty upon the public at its capital
lied value and if Uncle Sam buys at
this figure he will be- badly stung.
For, although the railroads Of this
country are capitalized at $20,000,-
DO0, 1000, it is doubtful if their physi-
cal assets are worth $4,000, 000, 900.
Most of the difference is represented
by "watered stock" and "melons"
which railroad manipulators frequent
ly cut to their own enrichment. If
the government pays 50, 600, 00O, 900
for the roads it will be paying about
$4,000, 900 900 for something that
doesn't exist and never did exist
except in the minds of the promoters.
Frank Heney Very Happy.
Francis J. Heney of San Francisco
is never happy unless he has a fight
on his hands. And today Frank Hen
ey is happier than he has been since
he convicted "Abe" Ruef in the graft
prosecution that led to the overthrow
Of the Southern Pacific political ma
for he has been placed in charge of
the prosecution of the Beef Trust and
IT'S subsidiary combines. This is a
real fight and Heney is bringing out
facts that long have been suspected
but difficult to prove.
Incidentally, when officials of the
National Nonpartisan league first
made these charges they were laughed
at by trust officials and their news
paper .apologists. But now Heney is
showing that the farmers had the
fright dope" aud the packers are no
longer mirthful. They realize that
this expose will strengthen the move
ment toward government ownership
and help the Nonnartisan league pro
gram in the Middle West. +.
Farm Banks Face Crisis.
The Federal farm loan bank system
is facing a crisis and it's continued
existence depends upon prompt iac-
lion by Congress-. The syndicate that
was financing bonds approved by the
= farm loan banks suddenly quit and
the whole system was tied up. Farm
ers, who applied fer more than $780,
100000 in loans, face foreclosure I'm
Jess the money is forthcoming.
A bill was introduced in the House
before recess to loan the farm banks
$i00,000,00 from the proceeds of the
Liberty Bond sale. This bill was
blocked, although quick action was
imperative. Another bill comes up
this week, but there is considerable
opposition. Apparently it is alright
to loan European countries millions
and millions Of dollars, most of
which is used to pay U. S. munition
makers, but when the farmers need
assistance someone objects.
The whole affair looks like a con-
spiracy to wreck the Federal farm
loan system. Private bankers OBJ
jected to this from the first. It's sue
cess would have made extensions Of
the system probable. So they strike
suddenly from behind in the hope Of
wrecking the system and d~iscouraging
the governments participation in the
banking business.
Townley's Plea is justified.
A side-light on the attack on the
farm banks is the fact that President
Townley Of the Nonpartisan league
appeared in Washington late in No.
xrorohop ond ocLnJ Droc;Ionf Ws1onv