Perth Amboy evening news., 1922-09-01
RECORD TALKS
ON R. 4. ISSUE
Says That Government Own
erShip Would Cause Great
Good to the Country

MORRISTOWN, Sept. George
i. Record, talking here, last evening,
pointed out to his hearers that the
government ownership of railroads
will come as a great stimulus 10
prosperity and he further declare cd
that the monopolistic control of rail
roads is now the greatest obstacle
IN the way of a return to prosperity
in this country. He said the roads
are unable to meet the demands Of
prosperous times and are largely re-
sponsible for the present financial
condition of the people. The con
dition, Record charges, is charge
able to men like Senators t'reliEg-
huysen, Newberry and others ii The
United States senate who obstruct
all efforts to loosen the hold of the
trusts and who sustain the mon
opolies.
Record. who oppose Senator Ere
linghuysen for the Republican nomi-
nation for United States senator, X
planned:
Now that government ownership
of railroads is being forced upon
public attention as an issue by ne
GOA and railroad strikes. and b. thoI
exposures of the Federal Trade
Commission and Interstate Colnmis-
sion. 1t is remarkable the variety and
strength of the arguments in favor
OF this policy.
Few people have noted the an
nouncements that have been put out
in the news recently to the effect
that the public must expect a great
congestion in the railroad service,
If the expected prosperity arrives
tho next ear. Everywhere the peo-
pie are distressed and looking Tor
some signs of returning prosperity.
We are now told by the railroad
managers that if prosperity arrives
the railroads are not equipped to
handle the traffic. The late James
J. Hill stated just before his death
that 1t would require for many years
five billions of new capital every
year 10 provide necessary equipment
for the railroads to keep up with
the development of the country. No
such money has been forthcoming
for many years, nor is there any
prospect that it will be forthcoming
az long as the railroads are in pri-
vate hands. The railroads are not
u as railroads, but as mere IN
struments to put money into the
hands of the banker management
from sales of watered securiti. S.
from contracts at high prices for
6AFth oat W VI |
which the banker management is
Interested, and from determinations
and favors in transportation TO the
trusts In which they are interested
There Is no intelligent planning
Tor the future, and in view OF the
locting of the New Haven and the
great financial scandals attaching to
other roads, it has become impossi-
BILE for the banker management to
obtain the money necessary to meet
the demands upon the railroads in
cident to the growth of the country.
The result is that when we have a
high tide of trade resulting from
general prosperity as in 1916, the
railroad terminals became hopeless
ly congested and the railroad equip
ment is seen to be wretchedly made
quate. In other words, the railroads
are equipped to serve the public
business Is poor. but are not
equipped to tax care of the peo-
pie when business Is good. Business
ought to be good all the time. and
would be except for the exactions of
monopoly. Business cannot become
good and remain good for the SIM
Pile reason that the railroads of the
country cannot handle the business
tha. would be offered under those
;ondltlops.
"This Is the greatest Indictment of
the private ownership of the rail-
roads. The enormous losses incident
TO the handling of business when it
gets into the swing of returning
prosperity would offset a thousand
times any increased cost of govern
ment ownership and operation. This
Is particularly true in view of the
fact that the main increase In ex-
penses under government ownership
would be due to tho substantial In
crease in wages that would be put
into effect under that policy. Such
increased wages, however, would
be expended by the employees for the
n~ecessaries and comforts of life now
denied them, which would create a
very greatly increased demand for
all of the staple products OF the
farm and factory, and thus be a
powerful stimulus to prosperity"