Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1920-12-02
Thursday. December 2, 1920.
Looking to the Government

One would suppose this an mop
perfume time to suggest, much less
advocate government ownership OF
the railroads. Government had its
chance in war time to show what 1t
could do-and it showed. The ex-
hibition throughout was sickening.
Considered in all its ramifications, as
applied not only to railroads but to
shipping and a thousand and one
other enterprises, the demonstration
of inefficiency and paralysis was
complete. Sensible men decided that
disagreement is inherently unable
to function successfully in any bust
ness requiring initiative and econo-
my, not to mention other requisites
notwithstanding all this no less a
person than Joseph B. Eastman of
the Interstate Commerce Commission
has come out in advocacy Of a sort of
REVISED Plumb plan whereby the
Government - the taxpayers - shall
put up the money for composite
management by organized business,
organized labor and bureaucrats. In
doing this he is careful to say: Il do
not pretend to have any ready made
plan" In that respect Mr.. Eastman
but follows the wisdom of not show
ing his hand. Plans are open to crit
icism,> whereas theories are as elu-
sive as soap bubbles.
1t is worthy Of notice that he real
iy offers as an excuse for his recon-
mendation. not proof that it is FEAST
BILE, but the statement that it would
improve on present conditions. These
he finds intolerable and offers no sug-
eestions for their improvement, in
which he runs true to form, offering
a hypothetical panacea for actual
conditions assumed to be past RENE.
dy
What he has to say respecting the
discouraging features Of the present
arrangement is of interest for
through consideration of the situa-
ton may we only expect to find i'm
provement
"You are familiar with the new
law" he said. "but I want you to pic
ture for q moment the situation in
which the railroads now finds them
selves. At every point they are
hedged in by the authority of ap-
pointees Of the President Of the Unit
ed States. There is hardly a break in
the fence. The Interstate Commerce
Commission may fix their rates and
the divisions of their rates. It may
route their freight, control their serv-
ice, open up their terminals. Their
accounts must be kept as it pre-
scribes. No share of stock, no bond
may be issued, no new line may be
constructed. no old line may be
abandoned, without its consent. If the
earnings are more than per cent.
upon the value Of the property as
found by the commission. half the ex-
cess goes to the Government. To
complete the circle. the wages Of en-
ployees and subordinate officials are
fixed by the Railroad Labor Board. /
have in no way overdrawn this sit
uation.
Il want you to realize, Also a most
important consequence of this situa-
ton. AS business men, you know
that if the railroads are to meet the
needs of the. country new capital
must flow in at the rate of more than
half billion dollars yearly. Some
say billion. You know, too. that the
railroad companies for the most part
are already too heavily burdened with
debt that they cannot long be- fin
anced successfully unless they can
market new stock. Financiers have
been telling US this for a very long
time. For many years private cap
ital sought this field of investment in
the hope of speculative rewards. The
Your attention Is that the growth of
public regulation has diminished both
the danger and the attraction of rail-
road investment, at least of invest
ment in railroad stock. Receiver
ships are less common than they used
TO be: the fact can. think, be DEM
onstrated. But the possibility of
large speculative rewards has been
shrinking until it has allsb been
eliminated by the legislation of this
year"
The appointment by Governor Mil
liken Of Grace E. Ridley of Alfred,