The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1924-10-03

1t is impossible even to estimate the
result on public indebtedness of the
adoption of this program in it's entire
ty, for there are nc satisfactory sta
tistics available as to the physical
value of the property used in all these
industries. We can, Lowever, estimate
the result of the, adoption of rela-
lively small part of the program-that
part which contemplates government
ownership of railroads.
II the government were to acquire
the railroads, 1t would have to buy and
pay for them, for We have a constitu-
tional provision that private property
cannot be taken over for public use
without Just compensation. That pro-
vision we dare not abrogate, because il
the government could confiscate rail-
road it could likewise confiscate farms,
shops and homes.
What wo' Id it have to pay for the
railroads? Admittedly it would not
have to pay for 'watered stock" or
good will, but it would have to pay
the actual value OF all physical prop
erty used in transportation. What is
that value? One valuation has been
made. AS a result of that val
uation 1t was ascertained that the
physical Value of the railroad prop
critics of this country in 1915 was $751;
900,000,000. Since that time several
billions of dolla.s have been added.
and it has been estimated that the
value today is $22,000,000, 900. To be
safe, let us put it at $2O,000,0 100000
That is 8 per cent of $3.50, 200, 100000,
he 4~I do
would have to be Issued to provide the
money, and these bonds would consti-
tute first lien on all the property in
America, for the interest thereon
would be collectible as taxes, and
taxes take precedence over any mort
gage or other lien. Your share, Min
nesota farmer, if you own $4,000
farm, would be $1,000. Would you
willingly appear before notary pub
lie to sign and acknowledge $4,000
mortgage on your farm in order to
furnish the money with which to make
doubtful experiment in public
ownership of railroads? Would you
give anybody a power of attorney to
execute such mortgage for you? You
would not. But that is just what the
candidates of the so-called Farmer-La-
Dor party ask you to do when they ask
you to vote for them.
And they are asking you, not only
to give them such power of attorney,
but to consent to a doubling of the
state tax on your farm. At the present
time the state of Minnesota derives
$8,500,000 a year from tax on the
gross earnings o. railroad companies.
If the railroads became government
property, the state would lose that
revenue, or it would be futile for the
government to tax its own instrument
tality. The revenue thus lost would
have to be made up by an additional
levy on all other property in the state.
An additional one-mill levy would raise
less than $2,000,000. In order to make
up the $S,500,000 of lost revenue, there
would have to be imposed on every
farm and every other piece of prop
erty in Minnesota practically four
mills in additional taxes. The average
state tax rate during the past decade
has been only little over four mills.
Therefore, Minnesota farmer, when
the candidates of the so-called Farmer.
Labor party ask you to vote for them,
they not only ask you to put $4,000
mortgage on your farm but to consent
to a doubling of the state tax-rate
thereon, not only for the next year, or
the next decade, but for all time to
come.
And let it be noted, that however
disastrous government ownership OF
railroads would be, it would be rela-
lively harmless compared with the
adoption of the entire public owner
ship program of the so-called Farmer.
Labor party.
1t will undoubtedly be contended by
advocates of the public ownership idea
that the publicly-owned enterprises
would return to the government sums
adequate to compensate for loss Of
taxes and to pay the interest on bonds.
There is no basis for such a conten-
ton If we may Judge from the expert
ence of the neighboring state Of North
Dakota in the operation of its flour
MILL Not only has the mill failed to
return it's operating expenses; not
only does it not pay any taxes on its
property; but the taxpayers of the
state are required to meet an interest
charge of $1,000 per day on the bonds
issued to build and equip 1t and to
finance its business. Surely he would
be an optimist who, with knowledge of
the record Of public ownership else.
where, would expect publicly operated
industrial enterprises to bring to the
people anything but higher taxes, in
creased public Indebtedness, impaired
credit and industrial stagnation.
Instead of adopting policies which
would increase the burdens Of the peo-
pie of our commonwealth, let us take
steps to reduce those burdens. Let us
make government simpler, not more
complex.
Born and raised on a farm l share
the aspirations o. those who labor.
My sympathies are not with the
drones of society but with its workers,
for I have always had to work my
self. When I am In the executive
chair, the farmers and workers Of Min
nesota will know they have governor
who understands them because he is
one of them.
The Republican party enters this
campaign with confidence, knowing
that it's record of achievement justifies
faith in the sincerity of its present
promises. 1t presents In Calvin Cool
idge, its candidate for President, one
who, entering the office of Chief Exec
utive under conditions as trying as
those that ever confronted any man,
has won the confidence of his fellow
citizens everywhere. For Vice-Presi-
dent it offers in Charles G. Dawes, not
second-rate figure, but statesman
who has achieved eminence, first, as
director of the budget, and, then, as
chairman of the commission which
formulated the plan for the establish
ment of economic peace in Europe of
which Chancellor Marx Of Germany