Evening star., 1924-09-30
HOOVER ASSA|LS
LAF0LLETTE PLAN
Secretary Declares Theory
of Public Ownership Would
Destroy Democracy.

Ownership of public utilities by the
Government would require rewriting
Of the Constitution and loss to the
American people of most of their
democracy, Secretary Hoover declared
last night in an address broadcast
from radio stations throughout the
country.
What Senator La Toilette pro-
poses," Secretary Hoover said. lis
far more than transitory expert
ment of Government in business-it
is a change in our social, economic
and political principles that will re-
act to revolutionize our Government
itself"
Government ownership plans of La
Follette's adherents, Mr.. Hoover as
serted, call for purchase and opera
tion by the Government of railways,
electorical and other utilities valued
by official commissions at about 40
billions of dollars. with 100000 en-
ployes recurring two billions of dol
lars annually for bond interest. with
an operating budget of 10 billions OF
dollars a year.
This is a financial transaction and
venture of a magnitude never before
undertaken by any man or any gov
ernment, Democratic or otherwise
except in Russia" he added, and
urged that the American people, be-
fore embarking on such voyage
study the capacity of the vessel to
carry the cargo"
The project, the Secretary said,
would wreck our democracy. and would
be a step backward by country which
has found the true road of advance
ment in these enterprises through
sustained initiative and equality of OPP
portunity to our people with public
control to prevent abuse"
Praises Prese.t System.
Mr.. Hoover pointed to the present
system of public control as one under
which all public utilities have enjoyed
enormous growth and constantly i'm
proving efficiency and service. 1t has,
he said. through stabilizing rates. re-
duced the cost of capital by increasing
the security for the savings of the
American people. The enterprises, he
pointed out. are no longer owned by
the few. citing that one great service
corporation has nearly 100000 stock
holders, while another has more than
100000.
Going into the political aspects of
Government ownership, the Secretary
declared that the purpose of the Gov
erRment would be changed from pres
ervation of basic human liberties to
that of making money.
Either Congress must be the board
OF directors for the 40-billion- dollar
business, or the project divided and
placed under non-partisan commits
sions or Government corporations
somehow free from politics and the
dead hand of bureaucracy" he de-
IL Al oil
retary said, will work
Would Destroy Democracy.
III we were to set up such agen
cies. so free from restraint of the
Congress and legislatures as to ac-
complish these objects" he added,
I'VE would have created gigantic des-
potisms controlling the well being
of our whole people-and incidentally
controlling the very election of our
officials. AS a matter of fact, we
can do nothing of this kind. if we are
to maintain a democracy. We can
not have a democracy and deprive
our elected representatives of their
control of Government investment,
their power to fix salaries and wages,
their independence in the investiga-
tion of the conduct of public officials.
The reservation of any or all of these
powers renders any kind of a COM
mission subservient to the members of
legislative bodies, no matter what
the theory is. When they are sub
servient to elected officials, politics
will be their daily need
Would Not Better Service.
Turning to the side of service un-
der the La Toilette plan. Mr.. Hoover
declares the public would not secure
better or more impartial service under
Government ownership. The action
of all Government officials" he said,
must be limited by vast amount of
regulation and red tape. Therefore,
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