The evening Caledonian. [volume] (St. Johnsbury, Vt.) 1918-1920, 1919-08-22
SAYS RAILROADS
CONTROL PLAN
M. T. Herrick of Railroad
Owners Assoc. Condemns
Plan of Labor Leaders
(By Associated Press]

CLEVELAND, Ohio, Aug. %
Myron T. Herrick of this city, mem
Der of The Executive Committee o.
the National Association of Owners
of Railroad Securities, declared in {
statement today that "the turning
over of the vast system of railroad
lines to the control of the govern.
nent, and through the government tc
the control of organized labor, would
be a long step toward the establish
ment in this country of an autocratic
power that would imperil the liber-
ties of the American people,
Mr.. Herrick, who was formerly
governor of Ohio and American am
oassador to France, is banker, di-
rector of the Erie Railroad and OF
the New York Life Insurance Com
pany.
Mr.. Herrick asserted in his state
ment that 1.-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 de-
feat the purpose for which the rail-
road brotherhoods were established
and that it would involve huge adj
tn In Inh he Il
of the railroads was estimated at
$17,000,000,000.
Referring to the agitation by rail
road employees through the officers
of their organizations in favor OF
government ownership of the roads.
Mr.. Herrick said:
"This propaganda will not be IA
vorably received by the people of
this country who, as always, must
pay the bill. The deficit incurred il
less than two years of federal OPP
Grafton is already more than $780,
100000 and is mounting at the rate
of $2,000,000 a day in spite of sharp
increases in freight and passcage,
rates. Directly or indirectly, in taxes
freight charges and increase in the
cost Of goods the burden of that de-
felt falls on the people and contri-
butes in tremendous measure to the
oppressively high cost of living. Ir
the face of that showing who could
conscientiously wish to perpetuate
governmental control of the rail
roads?
81 cannot believe the brotherhoods
have thoroughly considered the CON
sequences that would follow govern
ment ownership or that they have
prepared to exercise this great pow
or. Their present propaganda is
wholly at variance with the character
Of their organizations and with their
long and honorable history"
To add the cost of the railroads to
the governments debt, Mr.. Herrick
said, "would weaken the government
borrowing power, depreciate further
government securities and increase
the rate at which the government
can borrow. He pointed out that the
war had added S20,000,000,000 to
the public debt in two years and that
the annual interest. charge alone is
now almost equal to the whole an
nual expense of the national govern
ment before the war. "To buy the
railroads and double the national
debt would be exceedingly unwise,'
said Mr.. Herrick. 1T would simply
multiply the principal and interest
which the people must pay.
Uncertainty in business will not
cease until the railroad problem is
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 OF
backward, dependent upon the legis-
lation which is just ahead. A mistake
will threaten the whole finan ,,..l
structure.
Mr.. Herrick said that he believed
the best plan yet presented for solv-
ing the railroad question was that
presented to Congress by the Ma
tional Association of Owners of Rail
road Securities. This plan, he said,
provides for fixed percentage re-
turn to the roads and that where
road makes a profit in excess of
per cent the excess shall be divided
between the government, tn en-
ployees and the railroad. In his
opinion this plan protected all inter
ests-the public, the shippers, en-
"The time for experiments has
ployees, and owners.
passed." said Mr.. Herrick. "The
government has followed fads and
fancies far enough. Now let us for
get partisan and politics and devise
practical plan for the business-like
of our great vehicles of
commerce giving men of experience
and vision chance to exercise thir
abilitis. Radical experimentation is