New Britain herald., 1919-08-22
'GOVT. ROAD CONTROL AN AUTOCRATIC STEP
So Declares Myron I. Herrick in
 Published Statement


 T. Herrick of this city, member of The Executive Committee of the Ma tional Associa tionof Owners of Rail road Securities, declared in a. state ment today that "the turning over of the vast systems of railroad lines to the control of the government, and through the government to the control of organized labor would be a long step toward the establishment i'll this country of an autocratic pow CT that would imperil the liberties of the American people,"
 MT. Herrick, who was formerly governor of Ohio and American am bassador to France, is a banker, di- rector of the Erie railroad and of the New York Life Insurance com pany.
 MT. Herrick asserted 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 ef- ficiency nor economy in government control. He said that such control and operation would defeat the purpose for which the railroad brotherhoods
 
 involve a huge addition to the pub lie debt as the value of the railroads was estimated at s17,0O0, 100000. Referring to the agitation by rail- road employees through the officer of their organizations in favor of gov ernn1 ent ownership of the roads, Mr. Herrick said:
 This propaganda will not be fa- | vorably received by the people of 1 this country who, as always, must pay the bill. The deficit incurred in less than two years of federal oper- ation is already more than $500,- 1 100000 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 charge and increase in the cost of goods the burden of that deficit 1 falls on the people and contributes l in tremendous measure to the op- 1 pressively high cost of living. In the ! face of that showing who could con- ] scientiously wish to perpetuate gov l ernmental control of the railroads? T cannot believe the brotherhoods l have thoroughly considered the con- l sequences that would follow govern 1 ment ownership or that they have l prepared to exercise this great power. l Their present propa ganda is wholly 1 at variance with the character of l their organizations and with their l long and honorable history" l To add the cost of the railroads to 1 the government debt, Mir. Herrick ! said, would weaken the governm ent l borrowing power, deprecate further 1 governm securities and increase 1 the rate at which the government can 1 borrow. He pointed out that the war l had added s2O, 1000, 100000 to the pub l lie debt in two year and that the an- 1 nual interest charge alone is now all 1 lost equual to the whole annual ex- l pense of the national government be- l fore the war. ITO buy the railroads and double the national debt would ] be exceedingly unwise,' said MT. Her l rick. Tt would simply multiply the 1 principal and interest which the 1 people must pay.
 l "Uncertainty in business will not cease until the railroad problem is l solved" asserted MT. Herrick. "Every l delay means trem endous loss to the l country All the billions of wealth 1 owned by the people of the United l States are to go forward or back l ward, dependent upon the legisla- tion which is just ahead. A mista ke l will threaten the whole financial l structure.
 l Mir. Herrick said that he believed the best plan yet presented for solv- 1 ing the railroad question was that presented to congress by the Nation 1 al Association of Owners of Railroad l Securities. This plan, he said, pro vides for a fixed percentage return to the roads and that where a road l makes profit in excess of per cent the excess shall be divided between the government, the employees and the railroad. Tn his opinion this plan protected all interests-the public, the shippers, employees, and owners ] The time for experiments has