Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-12-20
RECRUDESCENCE OF OLD
BRYAN.POPULIST NOTIONS
The Farm Bloc's Dsmnins Of Wall
Street and the Railroads Is Based on
Miseoneeptions Of the Facts

The Farm Bloc's Damnins Of Wall
Street and the Railroads Is Based on
Misconceptions Of the Facts
THE transportation problem is little
= bigger than 1t appears to Senator
Brookhart and his friends of the farm
bloc. They are regarding 1t from the
point Of view Of the farmer dissatisfied
with freight rates and they do not seem
to realize that the remedy which they
wish to apply is worse than the disease.
Their plan, II carried out. would Grip
pie the railroads and prevent railroad
expansion, for It's fundamental proposi.
ton is that capital invested in railroads
is not entitled to an adequate return.
They assume that the capital Is in all
cases provided by millionaires with
offices in Wall Street and that no mil.
lionairc and no man with an Office In
Wall Street have any rights that the rest
Of the country Is bound to respect. This
Is the old Bryan.Populist doctrine, once
accepted as gospel by q considerable
number Of otherwise intelligent citizcns,
reappearing in the present economic
crisis.
Senator Brookhart talks Of the su-
periority Of the interests Of 100000
farmers over the interest of 5000 million.
aires owning the railroads. Well, there
are more than 10000 shareholders in
the Pennsylvania Railroad ard there are
about 100000 shareholders in fourteen
Of the leading railroads Of the country.
Perhaps 5000 Of them are millionaircs.
but the others are men and women Of
moderate means.
And the Senator apparently thinks
that the railroads have not suffered from
the same conditions that have affected
the farmers. Let US look at the facts q
moment:
On Monday Of this week the Great
Northern, which has paid a dividend of
per cent on its preferred stock since
1897, was forced to cut that dividend to
per cent. The Chicago. Milwaukee and
St. Paul, which paid q dividend of per
cent on its preferred stock from 1893
and on its common stock from 1897,
passed its dividends in 1917 and has not
been able to earn enough to resume
them. The Chicago and Northwestern
has been compelled to reduce It's divi.
dends from to per cent. And the
Baltimore and Ohio suspended its divi-
dends two years ago and. as 1t has been
unable to resume them, its bonds held
by the savings banks will have to be sold,
because in many States the Law forbids
the investment Of savings funds in the
securities Of corporations that have
passed their dividends for two consecu.
tive years.
Not only do Senator Brookhart and his
farm.b'oc associates fail to understand
the financial condition Of the railroads,
but they do not seem able to understand
that the successful establishment of an
American merchant marine is essential
to the solution Of the transportation
problem and is tied up with the problem
Of relief for the farmers.
An intelligently planned and honestly
administered ship-subsidy system would
provide competition in ocean freights
and would reduce the cost Of delivering
in European markets the surplus grain
from the West. 1t would enable the
railroads to tie themselves up to the
American steamship lines and 10 guaran-
tee through shipment from any point In
the country to any point in Europe or
Asia.
Money spent on good roads to enable
the farmers to run their autotrucks
loaded with grain to the railroad sta
tons is In reality subsidy to the auto
truck owners because It reduces the cost
Of operation through reducing the repair
bills. Now, it is just as important that
the Government spend money to enable
American ship owners to carry the grain
cargoes from the seaboard Of the United
States to the markets of the world as it
Is for the Government TO spend money
to enable the farmers to get their grain
to the railroads at the lowest possible
expense.
To lay aside the Ship-Subsidy Bill on
the theory that It Is not part Of an effort
to solve the transportation problem is to
msconceive the whole question. But It
is too much to expect Senator Brookhart
or Senator Capper or Senator Norris to
perceive this--or to admit 1t. They are
thinking Of the votes of the disgruntled
farmers who are damning the Govern
ment because they are suffering from
economic conditions growing out OF the
war and cannot understand that any one
else may also be in a similar plight.