Evening journal., 1920-02-07
OOUBTSOWNERS
Will Obtain R'YS
Congressman Layton Skep-
tical of Revision of Roads
to Stockholders
PRIVATE MANAGEMENT
HIS ONE BEST HOPE

In the opinion OF Caleb r. Layton,
Representative in Congress from Del
aware. there 'never viii be such a
thing again as private ownership OF
railroads" The most that can be
done under existing conditions. he
writes to che Chamber OF Commerce OF
this city. sis 10 secure private man
agement."
Congressman Layton's letter is in
reply 10 a communication sent him by
The Chamber OF Commerce through its
secretary. William II. Budd advising
him that that the Chamber favored
speedy adoption Of legislation looking
10 return Of the roads 10 their for
mer stockholders. His reply. which
has just been received and which he
has given consent TO be made public,
in full says:
II have your letter regarding the
pending legislation directed toward the
solution Of the railroad problem. and
7 desire 10 say that this problem is
ghe most immediate and the gravest
that IS now before the Congress OF the
United states.
THE high points OF difference be-
tween the Esch bill and the Cummins
bill are very apparent TO those who
viii mdke the comparison. ] think the
Cummins bill has several points Of far
greater merit. But, my dear secre-
iary, desire 10 call your attention TO
one outstanding fact, which must be
considered hereafter as the foundation
fact connected with the matter Of rail-
roads; and that is that by common
consent. there is no longer. and in my
judgment, never will be such a thing
again in ehis country as private owner
ship Of railroads. The most that can
be done is TO secure private manage
menb
Il make this statement confidently,
solely because Of the facts that have
developed during the last several
months since this question has be-
come a paramount issue.
About every formal plan that has
been submitted 10 the public and 10
Congress for the solution of The rail-
road question comprehends The exer-
else Of certain Government powers,
which when considered with open
railroads Of the country, If they are
not under actual Government owner
ship at least Will be under private
management with supreme Govern
ment control
Take the Esch bill and the Cummins
bill. which are the same practically.
and make an analysis Of these govern
ment powers. BY analogy we find the
following:
you have a shoe store with a build
ing, and land, and stock. In some way
! become possessed OF the power 10
walk into your store. and say to you,
Keep your books hereafter according
to this plan which / hand 10 YOU Sec
Ond, II you need any money for the
enlargement Of your stock or Of your
building, or for any purpose connected
with your business. you must come TO
me and get permission TO borrow this
money, and state exactly and specin-
cally what you want the money for.
and if You get my permission. you
must eXpend the money, which I per-
init you to borrow, for the specific
purpose for which you said you bor-
rOwed It. Third, Do not sell anything
out OF this store unless 1 fix the
price,
"Now I submit that II you had n
business OF that kind. and someone
else had such three outstanding pow
ers. YOU would not be very much Of an
owner, YOU would be more Of a man
ager. This statement Of facts leads me
also after much thinking about this
matter. TO another conclusion. and that
is that If the government is 10 as
sumo these three powers, Of necessity, !
logically and rightcously, the govern !
ment should stabilize or guarantee the
railroad stocks Of all railroads. 10 |
would he a most illogical, preposterous |
thing for the government, without such |
guarantee. to prescribe freight rates |
and passenger rates. by which alone !
they live and prosper, which if TOO |
low. would run the companies 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 grcaler !
guarantee for some railroads than for !
some others, and many other details
dealing with this ma.tse 7 do not |
know. ! do not profess 90 be an eX-
pert. I am only trying to figure things
out the best l can, finding I 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 20 |
stabilize capital, but 10 stabilize labor !
employed on the railroads. There is |
no question but what sooner or sater /
strikes upon railroads must be prevent |
ed in some way. My Judgment is that |
the very fact Of railroads being held up |
by strikes will ultimately cause the |
American people TO demand Govern |
ment ownership. as the only possible |
way TO avert them.
~ believe land / am saying this only |
as the result Of my own intuitlon) that |
the bill finally passed will be a COM |
promise bill between the Cummlns and /
the Esch bills. in which guarantee Of |
railroad stocks will be had. and an ar
bitration board established after the |
order OF the Canadian Arbitration law, |
with the possibility Of the adoption Of |
the regional system" as contained in |
The Cummins bill. II this were done. ! |
believe We would have a very fair So
luton Of the railroad question"