, 1924-10-15
HOOVER ON GOVERNMENT OWNERSHIP

OHN wv III
Secretary Herbert Hoover of the Department of Commerce has
contributed to the arguments in this campaign one of the most
forcible and clear-cut statements relating to ownership of public
utilities that has ever been given to the people. 1t is his judgment
that if al. the matters relating to public ownership are candidly and
dispassionately discussed. the employees of public utilities and the
public generally will decide the question Alright. He says:
at is for the American people to decide. If they arctic decide
rightly they should have the reasons set out before them IN terms
of sober economic and social thought, not: in vituperation and ap-
peals to hate. credit the sincerity of the advocates of these pro-
positions and I believe they have the manhood to credit ours.T There
IS but one consideration: the public interest. If l believed for one
moment that this adventure would reduce rates, that it would pro-
duce better service, that it would decrease taxes, that it would
benefit the employees. that it would maintain discovery, initiative
and advance in the development of these services, that it would not
wreck orr democracy that il would strengthen the foundation of
social and spiritual progress in America or even that it would do
a few of these things. would unhesitatingly accept this proposal
sttpendous ash is,
But l don't believe it. / am convinced not only by the expert
ments OF or country, but from the attempts made abroad that
government ownership is a step backward in every of these
propositions"
He quotes La Follette's own words, . am for the government
ownership of railroads and every other public utlity-every one y
Then he states concsely the burden OF expense that it would be ne
-cessary for the people to assume and gives the number of additional
employees that would appear on the Government pay rolls.
What the Senator proposes is far more than a transhory ex-
pertinent OF government In business, 1t is a change IN our social
economical and political principles that will react to revolutionize
our government itself. In its immediate form this is a proposition
that the government should buy and run the railways, electrical and
other utilities valued by official commissions at about $40OOOOOO,
900 with 100000 employees, requiring $2,OOOOOO0 annually for
bond interest, with an operating budget of So OOOOOOp per annum
TO keep pace with natural growth these concerns must spend ST.
OoOoo,om of new capital yearly for extensions. This is financial
transaction and a venture into business of a magnitude never be-
ioN htNIbhNS - N"y ''H VI my ON''p'NN Nf'D>'of "
otherwise, except in Russia. Surely before we embark into such
a voyage we should look into the possibility of profit, examine the
chart of the place where we are going and consider. the capacity OF
our government to carry the cargo" I~tNA~~ - =
- To the average reasonable mind it is uncomfortable that such a
stupendous amhhmt OF property could be taken over by the people
of the United States i'm any other manner than, through conhsca-
ton as has been done in Russia. What would this mean and who
would it benefit? Possibly those who would be o the government
lay roll. AS long as the consfcated wealth lasted they would be
in clover, but how long would it last? In the Russian experiment
it lasted less than two years. Secretary Hoover states that by the
naturalization Of all the public utilities the number of government
employees would be increased by six millions, and he. adds, The
yoting strength of this mass OF ofice-holders, their wives and de-
,endents will be over rs per cent of the whole 1t is the balance
Of political power between Parties. In every district either every
rember OF the legislative bodies will be elected by a public in re-
Lcrion against it."iF"t: tt rs,rstt%hf - Itl -.
Then Secretary Hoover briefly sketches experiments of Euro
pean governments with operation of transportation lines. He says
that can compare favorably with the best privately-owned and oper-
ated lines in this country. Our rates per mile are lower, our serv-|
ice is better, and the average pay of railway employees is higher.
These ire interesting matters in his address as to the result in
other countries when rates and wages ae regulated on a political
instead of an economic plan. In parts OF a country where political
support is desired, the public money is wasted; while in other parts
that are politically weak, the government does not make the neces-
sary appropriations to enable agriculture and industry to thrive
Concessions ire made continually to groups controlling blocks of
Votes, and "cvery experience to date indicates that the taxpayers
VIII pay for the resulting concessions Because the government
lad not the courage to increase railway rates during the war. the
Taxpayers. made up this 81 100000 operating deficit. A neigh
boring government yielded last year to the demand for lower rates
On the government railways. 1t is paying the deficit from taxes
teday"
Conditions under which the employees OF the Union Pacific Sys-
m and other big systems of this country work are ideal Private
ownership is divided between many thousands of people throughout
Tie nation, and with strict government regulation has given TO