Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1919-02-27
Thursday. February q. 1919.
Government Ownership Failure.

Government Ownership Faho'e'
The depressing effect Of govern
ment ownership or operation upon
the development of industry is rapid
Is impressing itself upon the minds
CT public men who are confronted by
the problem Of future governmental
policies. 1t is very noticeable that
some members Of Congress who had
shown some inclinations toward gov
eminent ownership or operation are
now returning to their former ad-
vocacy Of the more efficient and pro-
gressive methods Of private enter
prise. The short experience with the
railroad and wire operation under
government management has been
sufficient to show them the fallacy OF
the assumption that men OF no
previous training can make sue
cess of the greatest public service
concerns in the country.
For one thing, for instance. 1t is
recognized now as never before. that
the railroads have been business
builders. The private owners OF
railroads were under the constant
stimulus of finding more and more
freight for their roads to haul, and.
in order to get the freight. they
helped to build up new industries
along their lines. The railroad
operators were actuated chiefly by
selfish interest. it is true. but they
could not get more trafi1c for them
selves without adding to the produc-
ton Of the territories they served.
increasing the population. and inn
proving conditions generally.
For illustration. the Western rail-
roads have for years made large ex-
penditures to encourage farmers to
improve their dairy herds, their beef
cattle, and their horses. LAUNDERING.
fruit growing and mining were en-
couraged. In recent years the lead
ing railroads of the South have spent
large sums for the dissemination OF
information regarding agricultural
and manufacturing opportunities.
All this was for the purpose Of get
ting more business for the roads. but
it helped put men in touch with bet
ter opportunities for making money
through new industries or new meth
DDS in old industries.
Because the South had been slow
in development following the war.
the railroads in that section employed
chemists to search out deposits Of
chemical materials. and to make tests
to demonstrate the practicability Of
establishment Of chemical industries.
But a government manager Of a
railroad couldn't see the sense in a
railroad employing chemist unless
it was to discover new ways of keep
ing corrosion out of locomotive boil
ers. So the chemical laboratories
were closed and the chemists hunted
new jobs. That was under McAdoo.
and the present director Of railroads
has made the broad statement that
he will follow the McAdoo policies.
AS one protestant expresses it, the
dark days are on US still" Another
finds an explanation. but little solace.
in the fact that MIR. McAdoo's fall
ure was in his failing to understand
that no man on earth was big enough
to run the finances Of the United
States and manage the railroads at
the same time"
And the experience with the rail-
road chemists is but an illustration
of general policy. What is true Of
a man running government finances
and the railroads is also true Of a
man trying to run the post Office de-
partment and the telephone, tele-
graph and cable systems. In neither
case can one man have the genius to
make a success Of both. In neither
case will a government operator
have the incentive to develop new
business for his company. and, as a
direct consequence. develop new
business for the community and the
country.