The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1922-12-04
Howell States
His Position on
Rail Problems
Senator-Elect Corrects Mis-
statements Relative to His
Views on Government
Ownership.

| II. u. Howell, NebldShi l illttu
States senator-elect. has issued a state
ment correcting mis-statements of his
position on the railroad regulation
question, published in eastern news
papers since his election.
Mr.. Howell says:
1T would be a disaster for this gov.
ernment to take over the railroads at
valuation based upon reconstruction
new less depreciation. The estimated
value of our transportation system on
this basis is $50, 200 900. 200. or about
so per cent In excess of all the rail-
way stocks and bonds outstanding. AS
matter of fact, 1t would be a fatal
mistake for the government to take
over, bodily, the railroad systems of
this country under any probable cir
cumstances. We are not prepared
for it. No man now living would see
the end of the readjustment period;
and, before that time came, the public
would be in revolt.
/ Danger of Public Control.
"I have taken over two utilities on
behalf Of the public and gone through
the period Of readjustment, and feel
that I know something about the mat
ter, from actual experience; therefore,
believe such a plan impracticable.
Unfortunately, the present stipulation
threatens public ownership Of the rail-
roads on a wholesale scale. Not that
it will come from the people-not that
| it will come through the labor unions
The real danger is the railway capt.
talist. When he concludes that he can
no longer largely control railway leg
against him-the railroad capitalist is
liable to throw his weight in the
scales Of public ownership.
That is just what happened here in
Omaha in connection with the gas
plant. In other words, whenever the
railroad security holder concludes that
it will pay him better to have govern
ment bonds rather than his railway Sc
curities. no sentiment will prevent him
from embracing public ownership and
urging it with all his power and in
fluence.
Howell is Opposed
Consider the railway capitalist S
power. Suppose another general strike
should take place and the railroad
managers were directed by the own
ers to refuse all proposals for an ac
comodation. 1t is readily maginable
that the transportation of this country
could be brought to a standstill and
kept there until the government should
take some drastic action. Under such
circumstances, of course, the railroad
capitalist would urge that the govern
ment take over all the roads under
its police power-just as it did dur
ing the war. The result would be
that the roads would probably never
so back, and the treasury of the
United States would begin to pay
railway operating deficit, just as it
did during its recent experience. I'm
der any such circumstances, l am OPP
posed to the government taking over
the railroads again, under its police
power.
II would meet such an emergency
as suggested, by the appointment of
a receiver for any road that failed to
perform its functions as a public utili-
ty. Such a course would put the rail
| roads into operation without doubt,
and convince the railroad capitalist
that this method was not necessarily
an easy and certain road to public
ownership.
Start With One Line.
"Of course, the situation created by
such developments would arouse, ap-
parently, very strong sentiment for
public ownership and congress might
seriously consider it; and it would have
not only the support of railroad labor
but also Of the railroad capitalist and
his adherents; in fact, the govern
ment's hand might be forced, in which
case I should oppose any wholesale
public ownership.
If the United States government is
going into the railroad business, it
should go in at the bottom and not at
the top. Let's start with one great
railway line and not with all the prop
critics of the eighteen hundred railroad
corporations in this country. An ex-
perience with one great line might
open the eyes of the people, might
thoroughly clarity the situation. OF
course, this would not be what the
railroad capitalist would want, at
least. If were a railroad capitalist,
should want the government to take
over all roads. If they took over any.
But that would be the natural game
Tor the railroad capitalist. 1t would
DE best for him, but not for the
people.
As complicated as the railroad prob-
lem seems to be, the motives that will
dictate its solution are simple-they
are primal. Preconceived opinions will
be forgotten. Self-nterest will rule 3"
House Committee to Hear