The Barre daily times. (Barre, Vt.) 1897-1959, 1919-08-22

WOULD ESTABLISH
AUTOCR4TIC PLAN
To Turn Over to Railroads the Control
of the Railroads, Declares Myron 7.
Herrick, Member of Executive Com
mittee of National Association of
Owners of Railroad Securities.


Owners of Railroad Securities.
Cleveland, Ohio, Aug. 2l--Myron 7.
Herrick of this city, member of the ex-
ecutive committee of the National Asso-
citation of Owners of Railroad Securi-
ties, declared in statement Yesterday
that "the turning over of the vast sys-
tenn of railroad lines to the control of
the government, and through the govern
ment to the control of organized labor,
would be a long step toward the estab-
lislfment iii this country of an auto
cratic power that would imperil the lib.
critics of the American people"
Mr.. Herrick, who was formerly COVER
nor of Ohio and American ambassador
to France, is a banker, director of the
Erie railroad and Of the New York Life
Insurance company.
Mr.. Herrick asserted in his statement
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 purpose for which the rail.
that it would involve huge addition to
the public debt, as the value of the rail-
roads was estimated at $4,000, O00,0 600.
Referring TO the agitation by railroad
employees through the officers of their or
CARNATIONS in favor of government own
ership of the roads, Mr.. Herrick said;
This propaganda will not be favor
ably received by the people Of this coun-
try who, as always, must pay the bill.
The deficit incurred in less than two
years of federal operation is already
more than $500,000,000 and is mounting
at the rate of S2,000,000 day in spite
of sharp increases in freight and passen-
ger 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 tremen-
dous measure TO the oppressively high
cost of living In the face of tirat show
ing, who could conscientiously wish to
perpetuate government control Of the
railroads.
II cannot believe the brotherhoods
have thoroughly considered the conse.
quences that would follow government
ownership or that they are prepared to
exercise this great power Their present
propaganda il 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 borrow.
/ ing power, depreciate further govern.
ment securities and increase the rate at
which the government can borrow He
pointed out that the war had added S20,.
100000 to the public debt in two
years and that the annual interest
charge alone is now almost equal to the
whole annual expense of the national
government before the war. "To buy the
railroads and double the national debt
would be exceedingly unwise," said Mr..
Herrick. ut would simply multiply the
principal and interest which the people
must pay.
Uncertainty in business will not cease
until the railroad problem is solved" as
serted 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, dependent upon the legisla-
ton which is just ahead. A mistake will
threaten the whole financial structure"
Mr. Herrick said that he believed the
best plan yet presented for solving the
railroad question was that presented to
Congress by the National Association of
Owners of Railroad Securities This plan,
he said, provides for fixed percentage
return to tina roads, and that where a
road makes profit in excess of six per
cent the excess shall be divided between
the government, the employees and the
railroad In his opinion, this plan pro-
tected all interests-the public, the ship
pers, employees, and owners.
"The time for experiments has passed."
said Mr. Herrick. ''The government has
followed fads and fancies far enough.
Now let us forget partisan and politics
and devise a practical plan for the bust
ness-like management of our great vehi
Giles of commerce, giving men of expert
ence and vision a chance to exercise
their abilities Railroad experimentation
is unthinkable"