The Bismarck tribune., 1931-09-10

Official City, State and County
Newspaper)

UncorporateO
CHICAGO NEW YORK BCs~ON
When Government Goes Into
Business
Recently the state had an example
of the kind of accounting the gov
ernment does when 1t gets into busi-
ness. Through the legerdemain of
"easy' debts and credits, operating
profits are produced just like a rabbit
out of hat. These are used as SO
much dust in the taxpayers eyes so
that an impression, at least, is left
that the state mill and elevator Is
actually making money. OF course
anyone who analyses the figures
knows differently but the politicians
see to it that operating profits"
rather than actual deficits are fea-
tured.
North Dakota is not alone in It's
system of accounting where the state
industries are concerned. The fed
eral government has It's figure jug
Cling" department also. Take the
case Of the Mississippi River Barge
Line which is using $23, 900, 900 Of the
taxpayers money free Of interest and
taxes. This money IS being employed
to compete with the carriers which
pay taxes and which, under our sys-
tenn Of government, are supposed to
be entitled to fair return on their
investment. The chairman Of the
board of this barge line draws sal
ary Of $1,000 a year, but 1t Is paid
by the War Department out Of funds
supplied by the taxpayers. This gov
ernment barge line claimed profit
of $4,000 above operating expenses.
OF course the chairman's salary was
not computed or charged in operat-
ing expenses. Gross earnings In
cluded $4,000 in interest earned.
This freak of accounting is more GU
rious when it Is admitted that inter-
est really owed the government
for the use OF some $23 900. 900 of
taxpayers money is not debited. II
the one is not considered as debit the
other should not be credited as in
come, but once the government en-
ters the realm OF business to compete
with private enterprises the account
ants are able to perform miracles to
cover up actual losses and picture
operating profits.
When the people vote and order
their governments into business. ac-
counts should be kept as rigidly as
in private operations. Adherents Of
government ownership. however, who
manipulate politics, see to it that the
accounting is done on political
rather than business basis. The &C.
tual situation is seldom known.
There must be q thorough read
justment Of the governments atti-
! tude to business If conditions are to
j be restored. There is q very strong
party which seeks to plunge the gov
ernment even more into business in
direct competition with private en-
terprises which pay heavily of the
very taxes used to destroy them.
Probably the railroads present to-
day the best example Of what gov
ernmental interference has done to
the various properties. There has
been too much regulation in one d.
rection and none in others. The tax
payers, for instance, provide a free
right-of-way for competing bus and
truck lines, and in many instance.
the railroads pay considerable por-
tiou of the road tax. Unless some
steps are taken to divert the long
hauls to the rails. where they belong
highways win be employed in q way
never intended by the state or fed
eral government. In this instance
regulation has Jagged. It has beer
shown conclusively that the railroads
can handle the long hauls more eco.
nomically than truck lines, yet ou
highways are becoming clutteree
with trucks which tear them down
and contribute very little to theil
building or upkeep.
II Is not going to be an easy mat.
ter to unscramble the situation ant
restore the carriers Of the nation x
tho earning basis they should have
They have anaassed great sums O.
capital TO give the public q certai,
service which they are equipped Il
} do better than any other agency
D That investment is worth consider
4 1ng. One step toward restored con.
/ ditions would be to solve some Of th'