Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-10-02
First Attack Is
u. S. Railroads
In Russian Plan

! Nn1CaSO, OcI. Inc railroads. are
| in the first line Of defense against
those who would make this country
a second Russia. G. II. Markham,
president, Illinois Central Railroad
Company. declared here today in an
address before the fiftieth annual
convention of the American Bankers
Association at the Auditorium Thea =
| ter. in which he attacked proposals
| for government ownership of the
roads.
Mr.. Markham said that 1.-The broad
| principle to be considered was wheth-
err the people desire more govern
ment in business. and eventually all
government in business. which is
communism. The patriotic grounds
to be considered are those of the
greatest good for the greater number,
which constitute the essential prin-
ciple OF democracy.
Our nation has developed as the
great defender of the rights of the
individual. Private property is the
cornerstone of our industrial struc-
ture. We have had to regulate many
private businesses. including rail-
roads, but we have always managed
to avoid confiscation. We have new
err favored government ownership as
n national policy. and therefore we
have never been called upon to de-
eide definitely just how far it should
go. If the railroads are taken over
by the government. we must face the
fact that the big step in reversing our
old settled policy will be taken and
there will he no stopping the force
once we have let it loose. If there
is no particular reason why the gov
eminent should not own and run the
railroads. is there any reason why
1t should not take over also the
banks, stores. factories, farms, I'M
til all OF us are government employ
es and the ideal Of the soviet Is at
tanned.
"The largest business enterprise of
the government Is the post office de-
partment, which has about 800, 900
employees. The railroads have about
100000 employees. There are APP
proXlmately as many railroad en-
ployes as there are in all government
service, federal, state, county and
municipal. put together. If the rail-
roads are taken over by the govern
ment. there will be one government
employe out of every ten wage earn
ers in the country instead of one out
OF 20 as at present. II this one great
step Is taken into government own
ership. can any other industry in the
country feel that it is safe?
THE railroads. under private own
ership, are among our heaviest tax
payers. Under government owner
ship. the railroads would be no more
subject to taxation than the post
Offices now are. The result would be
an unbearable burden that might
force many of our local governments
to stop payments on their bonds and
go into bankruptcy. The tax problem
would be great deal more vexatious
than 1t is today.
1.-THE acquisition Of the railroads
would add more than $4,000, 000, 900
to our national debt, already the
largest ever carried by any nation
no longer in existence than ours. il
government railroads in this country
were no more successful than they
are elsewhere in the world. the in
terest on that twenty billions of pur-
chase 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 welcoming
government ownership for them
selves. They would gain immunity
from taxation and their. owners
would probably be protected from
loss. The Constitution prevents the
confiscation of private property, and
government ownership can be accom-
plished only by paying a fair price
for the properties taken over.
TT would be hard to keep politics
from influencing promotion on gov
eminent railroads and 1t would be
hard to have expenditures directed