Gunnison news-champion., 1918-03-15
QUESTION OF RAILROAD
OWNERSHIP WILL BE ACUTE
After the War Controvosery viii Sc.
Great Issues at Stake
BY Edward Heating
Congressman from the Third Colorado
Washington, d. C.
Eehr1lary 22s

ship OF the railroads will probably be
one of the big issues which the Amer
lean people will be called on to settle.
after the war. From present indica-
tions it will split the old parties wide
open. Such Republicans as Senator
Hiram johnson, of California, believes
the nation should own the railroads,
and Democrats Of the type of Senator
Underwood, of Alabama, denounce the
suggestion as "socialistic." My guess
is, however, that the Democratic party
will eventually declare for government
ownership while the Republican party
will straddle or bid for the opposition.
For the time being, Congress will
enact the pending bill which provides
for government control and operation
for the period Of the war, and for not
more than two years thereafter.
will vote for the bill, altho it con-
tains some provisions which should be
eliminated or modified.
Question of Compensation
Take the question Of compensation.
The bill provides that the Government
shall guarantee the roads their aver
age earnings for the past three years.
Many of the more favored roads are
earning dividends on "watered" stock.
They are not entitled to such profits,
even in times Of peace, and surely
such profits should not be guaranteed
by the U. s. treasury when the nation
is at war.
In order to pay these dividends, the
managers Of the roads have permitted
equipment and right-of-ways to de-
teriorate. Hundreds of engines and
thousands of cars were thrown on side
tracks, cuppled and neglected, while
shippers clamored for transportation
facilities. Official reports compiled by
the experts Of the Interstate Com
merce Commission, have revealed the
facts and laid bare the real reason
why the American railroad system
went to pieces under the strain Of war.
Based ON Abnormal Earnings-
The last three years were not normal
years in the railroad world. On the
contrary, net earnings were abnormal
ly large. Therefore, in guaranteeing
the roads the average earnings for the
last three years, the Government is not
only undertaking to pay dividends on
"watered" stock but is guaranteeing
that such dividends shall be based on
abnormal earnings.
In view Of these proposals., is it any
wonder that railroad stock advanced
ON the announcement that the Govern
ment would take over the roadsf II
il reported on good authority that the
market value Of these stocks and bonds
increased more than six hundred mil
lion dollars in one week. OF course,
the government created every dollar
| Of this increased value, although not a
penny Of it shall go to the public treas
ury.
There is good reason to believe the
stockholders welcomed government
control. They knew that they could
not definitely pay out in dividends the
money which should have been expend-
ed on maintenance.
They Don't Want Much
But they do not want government
ownership. Not at all. They will be
satisfied II the government will re-
equip and rebuild the roads, guarantee
unreasonable dividends during the re-
construction period and then return
the roads to private management.
This is . splendid scheme from the
point of view of the railroads, but .
poor arrangement so far as the people
Of the United States are concerned.
THE RAILROADS MUST NEVER
BE RETURNED TO PRIVATE OWN
ERSH1P. Private ownership has been
tested and has proven failure. Pub
lie ownership, where subjected to the
sevsrsst test, has been fully vindicated
Germany owns and operates its roads.
Has Cevsrnment Ownership been .
uecsss IN Germany Consider that
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