The Washington herald., 1919-01-31
Kentucky Rsilra4d cena-
mission Head Appears Be-
fore Senate Committee.
Law Is INEFFICIENT
Reads Must Be Kept Out
Of Politics, Witness
Declares.

fOaQS WAS urged D-IOTe lllt ochd1c
Interstate Commerce Committee yes
erdsy by Laurence b. Finn, chair
nan Of the Kentucy Railroad Commis-
ion. He gave eight reasons which,
le said, forced him to conclude. in
pits Of inherent sentiments to- tho
ontrarS, that prfvately-owned rail-
Dads could not meet the demands OF
ne public In matters OF transporta-
ion, and elaborated in support of each
ontention-
IT assert" said Mr.. Finn. that the
resent method OF operating the rail-
Dads has necessarily created evils
ot at all essential to government
,wnership and without any corre-
ponding benefits that should natur-
Ily be expected under real public
ownership and operation"
LexisIstion Inemcient.
The witness analyZed the remedial
egislstion proposed by the carriers
md declared 1t was wholly inefficient
Us a solution of the immediate prob
EN- confronting Congress. he advo-
tsated passage of a resolution declar-
ngthe policy of the government to
pe in favor of owning and operating
the railroads.
This would relieve the unsettled con-
dition of the country he said. after
which a committee should be ap-
pointed TO draft appropriate legisia-
ton to effectively accomplish this
purpose; which committee should be
able to make 4 comprehensive report
n from three to six months, and draft
a measure covering the details OF a
governmental plan to own and oper-
ate the railroads.
The eight reasons for government
ownership given by Mr.. Finn are:
Il. Under private ownership and
operation. railroads are required to
engage in politics. AS a result scarcely
any public question is free from in
iuence brought to bear by those in
.err sted in railroad policies.
-. Railroads are public highways.
They are governmental agents, do
ing for the public that which the
government could do; and from eco
0omic necessity they should be con-
Iucted without competition. thereby
becoming necessary monopolies. All
agree that a private monopoly is
indefensible and intolerable and
should be destroyed. Therefore. a
necessary governmental monopoly
must be owned and operated by the
government
"3. 1t requires enormous sums TO
finance railroads. Under private
ownership capital cannot be COM
oeIled to contribute its money to
build or equip transportation COM
panies- Therefore. the public or the
government must offer attractive in
5ucements to invite capital to invest
in a necessary govsrnmental enter
< l.
results in the rate paid to private
ssapital under private ownership eX-
ceeding the rate paid by the gov
Arnment under government owner
ship by hundreds of millions Of dol
lars annually; and, besides, in crit
ical times organized capital can re-
fuse to furnish the necessary money
to finance the railroads unless the
government actually guarantees sat
isfactory returns upon securities is
sued.
Il. All agree theoretically that
strict governmental regulation is
absolutely essential to require rail-
road companies to give the public
reasonable rates, adequate services
and facilities. without discrimina-
ton: and that the usual OF stocks
and bonds should be controlled by
the government: and that the gov
ernment supervise the actual ex-
penditure Of the money received
through the sale Of stocks and
bonds. II the government regulates
the rates. rules, practices and serv-
ices of common carriers and pre-
scribes the amount and conditions
under which it's stocks and bonds
may be sold and how these sums
10 o
duty of the government to guar
antee a certain and fixed rate of re-
turn to capital invested in trans
portation companies. And this is
goyernmen Mt ownership.
IS Under private ownership. rail-
roads must be operated for the max
imum profit. This is a mistaken idea
Of the functions of a public highway.
\ railroad is like any other public
highway. 1t is an institution for pub
tic service, a necessary medium for
the exchange of commodities, with,
out which prosperity cannot exist. 1t
is Just as absurd to operate a public
highway for profit as it is for fiscal
court or county commissioners to
levy excessive taxes to exhibit
large surplus as an evidence of the
county's credit or the business ability
OF the county commissioners.
&c. AS a policy Of government it is
unjust and unlawful for a county or
state to own and operate a public
highway under the tollgate system
and charge excessive tolls to those
who use the public highway to ac-
ouire surplus with which to build
a courthouse or other public high
ways. It is less defensible, therefore,
TO allow private individuals to op-
crate a public highway for profit and
pocket the surplus.
~ The public are entitled to the
natural AMI artificial advantages of
cheap water transportation; but fos-
tering cheap transportation by water
as a governmental policy is antago-
nistic to privately owned rail carriers
operating for profit. Only government
ownership OF railroads can eliminate
the conflict.
g Organized capital, organized la
Dor and the government cannot live in
permanent peace under private owner
ship Of public highways. Under pri-
vate ownership of railroads one of
two results is inevitable: Either. first,
organized capital and organized labor
will combine, in which event the un-
organized public will be ground be-
tween the upper and the neither MILL
stone, or. second, organized capital
and organized labor will continue
their strife, and when the dispute be-
comes irreconcilable IL will result in
organized capital refusing to pay and
organized labor refusing to work The
government cannot tolerate either