Red Lodge daily news combined with Carbon County news., 1934-08-08
GOVERNMENT OWNERSHIP COMING?

One of the questions most frequently asked nowadays,
where the economic future of the country is concerned, is
what is to become of our railroads and other utilities? The
problem is one which will bear a great deal of study and
it is now engaging the concern OF economists both inside
and out the federal government.
The railroads have had their share of trouble during
the depression. They have had to buck the decline in bust
ness and increased competition from trucks. They were
given a small increase in freight rates but this was of
doubtful value at a time when the price level generally
was falling. Since the bottom was reached and the slow
climb commenced, many railroads have succeeded III get
ting from the red into the black but they are by no means
out of the woods. They have been compelled to extend an
increase in wages, adding to the operating costs in the
sum OF $l56,OOO,0OO a year. They have been compelled by
Il law passed by congress and signed by the president to
put into effect a compulsory pension agreement which,, it
is said, will cost them 66,000000 a year. Again, the in
crease III prices due to the NRA recovery program has
added another $3.50 100000 to operating costs.
1t is not to be wondered therefore that the future of the
railroads looks somewhat uncertain. The case of the util-
tiles is little better. They have been confronted with ris-
ing costs and reductions Ill rates, and what is even more
serious with the threat of increased government COMPETE
ton. Not long ago the newspapers carried dispatches to
the effect that government competition, by publicly
owned plants, would be used to 'force'' nation wide re-
auctions in rates.
All of this sounds fine, but how about the holders of the
securities of the railroads and utilities? They are not all
millionaires. They can be found in nearly every walk of
life all over the country. Many of them have their life
savings invested in these securities. 1t would seem that
the present tendency is to force the nation and its utili-
CO0RN1& OH0 " I1lNIi Wv I'LL Jill ~
Ii additional cost burdens are piled on the railroads and
other utilities the time may come when they can no longer
carry the load. Then the cry will go up from our radical
brethren to the effect that the time has now come to take
over the railroads and utilities because private capital
can no longer handle them. Indeed, it seems that a great
many OF our so-called experts are now looking forward to
that moment, and greet each added burden to the rail
roads as Fastening the day when government ownership
will come about.
Little thought has been given yet as TO who will pay
the taxes when this day comes about. Our railroads and
other utilities now pay a big share in the upkeep of our
government, federal, state and local, through taxation.
When the government takes them over somebody will
have to make up the difference. 1t will be the small tax
payer, OF course. He always gets it in the neck in the end.
And those OF us who remember something about federal
railway administration as it occurred during the war will
not be anxious for a repetition of that experience.
The fellow who worked sixteen hours a day for twenty
years and made a little money has now come to the point
where he can see the government beginning to tax that
money away from him to give it to the fellow who
wouldn't work and save his money when he had chance.
We heard the other day that there were a lot Of counter
felt fifty dollar bills in circulation, but personally we are
not worrying any about this.
1t is said to be SO dry out in Kansas that the grasshop-
pers are getting hay fever.