The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1919-08-21
PERIL IN GOVERNMENT
CONTROL, SAYS HERRICK
Experience Has Proved That II Is
Neither Efficient or
Economical

Cleveland, Ohio, Aug. 20.-Myron T.
Herrick OF this city, member of the
Executive Committee OF the National
Association OF Owners of Railroad
Securities declared in a statement
yesterday that "the turning over OF
The vast system OF railroad lines to
the control of the government, and
through the government to the control
of organized labor, would be long
step toward the establishment in this
country OF an autocratic power that
would imperil the liberties of the
American people.
Mr.. Herrick, who was formerly gov
ernor OF Ohio and American ambas-
sador to France, Is a banker, director
of the Erie Railroad and of the New
York Life Insurance Company.
Mr.. Herrick assured IN his state
ment that the experience OF the
last two years with the railroads, as
With the telegraph and telephone lines
is ample proof that there is neither
efficiency nor economy in government
control He said~that such control
and operation would defeat the pur-
pose for which the railroad brother
( hoods were established and that it
would involve a huge addition to the
public debt as the value OF the rail
roads was estimated at $17,000,000
0Uc.
Referring to the agitation, by rail
read employees through the officers
of their organizations in favor of gov
eminent ownership OF the roads, Mr.
Herrick said.
This propaganda will not be favor
ably received by the people of this
country who, as always, must pay the
bill The deficit incurred in less than
two years OF federal operation Is al
ready more than $500,000000 and is
mounting at the rate OF $2,000,000 a
day in spite OF sharp increases in
freight and passenger rates. Directly
or indirectly. in taxes, freight charges
and increase in the cost of goods the
burden OF that deficit falls on the
people and contributes in tremendous
measure to the oppressively high cost
living. In the face of that showing
who could conscientiously wish &c
perpetuate governmental control Of the
railroads."
II cannot believe the brotherhoods
have thoroughly considered the con
sequences that would follow govern
ment ownership or that they are pre-
pared to exercise this great power
Their present propaganda is wholly a
variance with the character of theil
organizations and with their long anC
honorable history"
To add the cost of the railroads Il
the government debt, Mr.. Herricl
said, would weaken the government
borrowing power, depriciate furthel
government securities and increase
the rate at which the government
can borrow. He pointed out that tht
war had added $4,000 900 600 to thu
public debt in two years and that thu
annual interest charge alone is nov
almost equal to the whole annual ex
pense of the national government be
fore the war ITO buy the railroads
and double the national debt would
be exceedingly unwise," said Mr.
Herrick. 1T would simply multiply
the principle and interest which
the people must pay
Uncertainty in bu mess will no
cease until the railroad problem i!
solved" asserted Mr. Herrick Every
delay means tremendous loss to the
country. All the billions of wealth
owned by the people of the United
States are to go forward or backward
dependant upon the legislation which
is just ahead. mistake will threat
en- the whole financial structure
Mr. Herrick said that he believed
the best plan yet presented for solv
ing the railroad question was that pre-
sented to Congress By the Nationa
Association OF Owners of Railroad
Securities. This plan, he said. pro
vides for fixed percentage return tc
the roads and that where a road
makes a profit in excess of per cent
the excess shall be divided between
the government, the employees and
the railroad. In his opinion this plan
protected al interest-the public, the
shippers, employees, and owners.
THE time for experiments has pas
sed' said Mr.. Herrick. The govern
ment has followed fads and fancies
far enough. Now let us forget par
tisan and politics and devise prac.
teal plan for the busness-like man.
agement of our great vehicles Of com.
merce giving men of experience and
vision chance to exercise their