Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1924-12-12
OPPOSES FEDERAL
RAIL OWNERSHIP
Government Operation Would
Mean Increased Taxation for
General Public, Says Rail Head.

Opposition to Government owner.
ship of the railroads, not because Of
the interests of the present owners
but rather because of the burdens and
disadvantages the change would i'm.
pose upon the people as whole, was
expressed by C. H. Markham, presi-
dent Of the Illinois Central Railroad,
in an address before the recent con-
vention Of the American Bankers As
sociation.
I'VE have never favored Govern
ment ownership as a national policy"
Mr.. Markham said. "If the railroads
are taken over by the Government,
we must face the fact that the big
step in reversing our old and settled
policy will be taken. II there is no
particular reason why the Govern
ment should not own and run the
railroads, is there any reason why 1t
should not take over also the banks.
the stores, the factories, the farms,
until all of us are Government en-
ployees and the ideal of the soviet is
attained? The railroads are the first
line of defense against those who
would make this country a second
Russia.
''The railroads have about 1000 900
employees, approximately as many
employees as there are in all the Gov
eminent services Federal, State,
county and municipal-put together.
II the railroads are taken over by the
Government, there will be one Gov
eminent employee out Of every ten
wage earners in the country, instead
Of one out of every twenty, as at
present.
Doubling Taxation
'Then, too, there is the matter Of
taxation. The railroads, under pri-
vate ownership, are among our heav-
lest taxpayers. Last year they paid
taxes amounting to So for every man.
woman and child in the country. In
some counties, particularly in the Mid !,
die West, the railroads pay from 10
per cent to nearly so per cent of the {
taxes collected. Under Government
ownership, the railroads would be no
more subject to taxation than the
post offices now are. In some way
the Government would have to make
up the difference Of So a head for
every person in the country. In many
counties the taxes on the re-
naming property would have to be
nearly doubled. The result would be S
an unbearable burden that might
force many Of our local governments
to stop payments on their bonds and
go into bankruptcy. The tax prob .
lem would be great deal more vexa-
tious than it is today.
"Then, too, the acquisition of the
railroads would add more than twenty !
billion dollars to our national debt.
If Government railroads in this coun-
try were no more successful than
they are elsewhere today in the
world, the interest on that twenty bill
lions of purchase price would be the
cause for additional burdens on the
taxpayers left to carry it. As the tax
burden developed, 1t would not be
surprising to see other industries well
coming Government ownership for
themselves. They would gain i'm
munity from taxation in turn, and
their owners probably would be pro-
tected from loss. The Constitution
prevents the confscation Of private
property, and Government ownership
can be accomplished only by paying a
fair price for the properties taken
over.
Bad for Public {
ST do not oppose Government own
ership of the railroads on behalf Of
the present owners Of the railroads.
many of whom would obtain safety in
Government bonds in return for Sc
curities which have not paid a re-
turn in years. l oppose Government
ownership of the railroads because
believe that it would be bad for our
people as a whole. It would open the
way to Government ownership OF
everything, and at the same time II
would certainly lead to the wrecking
Of our highly essential railway ser
vice, if the lessons of experience of.
fered by other nations mean anything
al %