The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-08-21
IHERRICK SCORES
G ''FAD'' OF STATE
R. R. OWNERSHIP
Mounting Costs, Lower In
come, Inevitable Result of
Further Experiment.
(By Associated Press)

CLEVELAND, O., Aug. 21.-Myron
t. Herr1ck OF this city, member Of the
Executive Committee Of the National
Association of Owners Of Railroad Sc
curities. declared in a statement to-
day that the turning over Of the vast
system Of railroad lines to the con-
troll OF the government, and through
the government to the control OF Or
ganized labor, would be a long step
toward the establishment in this coun-
try OF an autocratic power that would
tmper1l the liberties of the American
people"
Mr.. HeSrick, who was formerly gov
ernor Of Ohio and American ambassa'
dor to France, is a banker, director
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 ia neither eff
cheney nor economy in government
control. He said that such control
and operation would defeat the pur-
pose for which the railroad brother
hoods were established and that it
would involve a huge addition to tho
public debt as the value Of the rail.
roads was estimated at 17,000,000.0 700.
Terrible Deficit Incurred.
Referring to the agitation by rail-
road employees through the officers Of
; their organization in favor of govern
tment ownership of the roads, Mr.. Her
rick said:
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 al
ready more than 100000 900 and is
mounting at the rate of 100000 a
day in spite Of sharp increases in
freight and passenger rates.
Directly or Indirectly, in taxes,
freight charges and increase in the
cost of goods. the burden Of that def
cit falls on the people and contributes
IN tremendous measure to the oppres-
s1vely high cost Of living. In the face
Of that showing who could conscien-
tiously wish to perpetuate govern
mental control of the railroads?
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 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
government securities and increase
the rate at which the government can
borrow. He pointed out that the war
had added 10000, 100000 to the public
debt in two years and that the annual
interest charge alone is now almost
equal 70 the whole annual expense Of
the national government before the
war.
'To buy the railroads and double the
national debt would be exceedingly
simply multiply the principal and in
terest which the people must pay.
Problem Must Be Solved.
Uncertainty in business will not
cease until the railroad problem is
solved" asserted Mr. Herrick. "Ev.
cry 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 legislation which
is just ahead. A mistake will threaten
the whole financial 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 National
Association of Owners of Railroad Sc
curities. This plan. he said. provides
for a fixed percentage return to the
roads and that where a road makes a
profit in excess of 6 percent the ex
cess shall be divided between the gov
eminent, the employees and the rail
road. In his opinion this plan protect
ed all interests-the public. the ship
pers, employees, and owners.
The time for experiments has
passed" said Mr.. Herrick. THE gov
eminent has followed fads and fancies
far enough Now let us forget par
tisan and politics and devise a prac
teal plan for the business-like man
agement of our great vehicles Of com
merce giving men of experience anC
vision a chance to exercise their abil
files. Radical experimentation is un
thinkable."