Pine Bluff daily graphic. (Pine Bluff, Ark.) 1893-1942, 1919-08-21
Herrick Says Such a Move
Would Imperil Liberties
of the People.
OWNERSHIP BY THE
GOVERNMENT A FAILURE
Declares Best Plan Yet is That Pro-
posed by the Owners of
Railroad Securi-
ties.

Cleveland. Ohio. Aug. 2O.-Myron
I. Herrick of this city, member Of
the executive committee of the ma
tional association of Owners of rail-
road securities, declared in a state
ment today that "the turning over of
the vast system of railroad lines to
the control of the government, and
through the government to the con-
troll of organized labor, would re a
long step toward the establishment
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
bassador to France, is a banker, d.
rector of the Erie railroad and of the
New York Life Insurance company.
Mr.. 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 eff
ficiency nor economy in government
control. He said that such control
and operation would refeat the pur-
pose for which the railroad brother
hoods were established and that it
would involve huge addition to the
public debt as the value of the rail-
roads was estimated at $4,000, OO0,-
600.
Referring to the agitation by rail-
road employees through the officers
of their organizations in favor Of gov
eminent ownership of the roads, Mr.,
Herrick said:
Looks To People.
"This propaganda will not be fav-
orably 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 already more than $500,OOO, 900
and is mounting at the rate of ST..
100000 day in spite of sharp in
creases 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 of iv-
ing. In the face of that showing
who could conscientiously wish to
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 have
prepared to exercise this great power
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
securities and increase
the rate at which the government can
borrow. He pointed out that the war
had added ,000,0O0,00O to the pub
lie debt in two years and that the an
nual interest charge alone is now al
most equal to the whole annual ex-
pense of the national government be-
fore the war. ''To buy the railroads
and double the national debt would !
be exceedingly unwise," said Mr.. !
Herrick. at would simply multiply
the principal and interest which the
people must pay.
Against Experiments.
Uncertainty in business will not
cease until the railroad problem is |,
solved" asserted Mr.. Herrick. Every |
delay means tremendous loss to the
All the billions of wealth I
owned by the people of the United |
States are to go forward or backward I
dependent upon the legislation which
IS Just ahead. A mistake will threat
IN the whole financial structure.
Mr.. Herrick said that he believed
he best plan yet presented for solv-
ng the railroad question was that
to congress by the national
of owners of railroad Sc
:urities. This plan. he said, provides
or a fixed per centage return to the
'oads and that where a road makes
! profit in excess of per cent the
excess shall be divided between the
government. the EMPLOYEES and the
abroad in his opinion this plan
protected all interests-the public,
he shippers. employees. and owners.
The time for experiments has
passed" said Mr.. Herrick. "The gov
.rnment has followed fads and fancies
ar enough. Now let us forget par
isanship and politics and devise i
PRACTICAL plan for the business-like
of our great vehicles of
commerce, giving men of experience
nd vision chance to exercise their
bilities. Radical experimentation is
nthink able