Every evening, Wilmington daily commercial., 1920-02-07
PRIVATE OWNERS
OF RAILROADS IS
THING OF THE PAST
Congressman Layton Explains
Pending Legislation Now
Before Congress.
NEW METHODS TO PREVAIL

In reply to letter seeking information
regarding the pending railroad bills now
before Congress, Congressman Caleb K.
Layton has written William L. Budd,
secretary of the Chamber Of Commerce,
relative to what these measures propose
and reviewing the present situation. Mr..
Layton states emphatically that there
never will be private ownership of rail-
roads, but that it is likely there will be
private management. The legislation
that will result from digestion OF the
Cummins and Esch bills, Mr.. Layton he
lieves, will be compromise IN which
guarantee OF railroad stock will be had
and an arbitration board. The letter TO
MIR. Budd in full, follows;
William T. Budd, secretary, Chamber
of Commerce.
Dear Sir: I have your letter regarding
the pending legislation directed toward
the solution of the railroad problem, and
| desire 10 say that this problem is the
most immediate and the gravest that is
now before the Congress of the United
States
The high points Of difference between
the Esch bill and the Cummins bill, are
very apparent TO those who will make the
comparison | think the Cummlns bill
has several points of far greater merit
But, my dear secretary, ! desire to call
your attention 20 one outstanding fact,
which must be considered hereafter as the
foundation fact connected with the mat
ter of railroads; and that is that by conn
mon consent, there Is no longer, and IN my
Judgment. never will be such a thing
again in this country AS private ownership
of railroads The most that can be done is
q. unfitrn IN m N
Il make this statement confidently,
solely because of the facts that have dc
veloped during the last several months
since this question has become para
mount issue.
About every formal plan that has been
submitted TO the public and 10 Congress
for the solution of the railroad question
comprehends the exercise OF certain gov
eminent powers, which when considered
with open eyes, reveal the fact that here
after the railroads OF the country, II they
are not under actual government owner
ship, at least will bo under private man
agement with supreme government con-
troll
Take the Esch bill and the Cummins
bill which are the same practically, and
make an analysis of these government
powers. BY analogy we find the follow
ing:
You have shoe store with a building,
and land. and stock. In some way be-
come possessed OF the power to walk into
your store, and say 10 YOU, Keep your
books hereafter according to this plan
which ! hand to you. Second, Ii you
need any money for the enlargement OF
your stock. or 81 Your building. or for any
purpose connected with your business, you
must come 10 me and get permission 30
borrow this money, and state exactly and
specifically what YOU want the money for,
and If YOU get my permission, you must
expend the money, which permit you to
borrow. for the specific purpose for which
YOU said you borrowed it. !" Third, DO not
sell anything out of this store unless fix
the price
Now | submit that il you had busi-
ness Of that kind, and someone else had
such three outstanding powers, you would
not be very much OF an owner. you would
be more OF manager This statement Of
facts leads me also, after much thinking
about this matter, TO another conclusion,
and that Is that If the government Is 70
assume these three powers, ot necessity,
logically and rlghteously, the govern
ment should stabilize or guarantee the
railroad stocks OF all railroads. II would be
a most illogics4, preposterous thing Tor the
without such guarantee, to
prescribe freight rates and passenger
rates by which alone they live and pros /
per, which Il too low, would run the com /
panies into debt, and thereby produce all /
sorts of trouble, including labor troubles. /
AS to what amount OF guarantee /
should be placed upon the stocks, whether |
there should be a greater guarantee Tor /
some railroads than for some others, and 4
many other details dealing with this mat /
ter, | do not know. ! do not profess TO be /
an expert. | am only trying to figure I
things out the best l can, finding ] have |
plenty of company as far as fogginess and |
confusion of mind is concerned.
Another outstanding fact Is that there ,
must be some way not only to stabilize |
.aptal but TO stabilize labor employed |
IN the railroads. There Is no question but
what sooner or later strikes upon rail- |
-oads must be prevented IN some way. My /
Judgment is that the very fact o. rail- /
-oads being held up by strikes VIII ul- |
-imately cause the American people 10 /
demand government ownership, Us the /
lnlv possible way to avert them.
i believe (and | ana saying this only
IS the result of my own mtuitlon), that |.
he bill finally passed will be a compromise
ill between the Cunmrnins and the Esch
,ills, in which guarantee Of railroad stocks
will be had, and an arbitration board
after the order Of the Canadian
Arbitration law, with the possibility of the
doption Of the regional system" as con-
aimed in the Cummins bill. If this were
lone, ] believe we would have a very fair
oluton OF the railroad question.
Yours very truly,