The Fort Peck press., 1934-10-25
Taking Over Railroads
Would Increase National
Debt 81, 900, 900.

Oo0t $lX,5W,VUO,UU.
WASHINGTON.-IA the midst o
al Of the other uncertainties To-
business, q 70 attempt 10 bring abou
public ownership Of all railroads Il
peeping above the federal govern
meots horiSon. Depression condition:
have made the time opportune, mauy
government ownership advocates 10
iIsva They are prepared to start A.
i~ntenaIye drive. aad they have Ia mint
4 definite proposal under which tn
railroads might be acquired
Their program. Of course. Il ineonp
ptets but the understanding In Wash
inStos h that 4 draft ALREADY hsA
been mAdaL Ii SPONSORS chiefly an
among thu Presddauts advisors. While
much secrecy surrounds the program
and the whole scheme probably will
b hAld couddsntiai for sous weeks,
4 = Hsterthslass An establiahed fact
that soans Of the brain trustezs neu
heps they caa push the question Of
government acquisition 81 the rail-
roads into the hands ef the sext coo.
vreA
~ tar ~ h known IN Washington,
1t h not generally expected even BY
tAe ardent advocates Of government
~vaerahip that legislation can b put
through In the session that eonvenes
na0t January. That fact however,
Is mid not 70 have deferred them In
their efforts at all II they can devel.
~ Grength In the next congress. they
propose then to put on pressure look
Ing to SUCCESS In the succeeding sesL
n4oa-
Tbs shA,eAosdorS Prospects
OF course, a stated above, tho pres
ant movement has NOT taken shape
at this writing 10 permit definite state
m<nts On The character. Of the plaa
still largely In the minds Of some q
the brain trustess. It oaa b ses down
a. a faet. n~sve1thAsss. that basic COR
sidezaticos Au far r~oei~1ng alton
tioA ho0 the soysrument ownership
kades csRsknvhte virtual destxue-
ueo - tie rights Of shareholders In
many q ~ eountry's railroads. Thu,
According t. the latest Interstate Com
s.exee C>asualoelon figures, means that
moro than 10000 Individuals would
see their certificates Of stoex eoovsst-
ID into nothing nors than beautifully
engraved pieces Il paper !; there would
b NJ valu4 le<k.
II y the undertaking. hA1o thst
soma Ct the brain trusfezB behevs the
railroads can b bought f,om their
present owners for exactly the amount
% theif bonded indebtedness The
Interstate Commerce Commission re-
ports the total outstanding bonds of
the railroads to b about 31z. 400. Ooo.-
40 and II also Ays that the total
value Of the roads u about $4,000
100000. From these figures II becomes
apparent, therefore, that II tho move
nIcnt to take oTar the railroads on
eho basis ~concocted BY some Of the
government ownership advocates were
to be carried through. the government
would acquire the railroad properties
:or about half Of their value as rep-
resented b. their capitalization
Not since 1870 has the subject Of
government ovnerah1y bean vigorous
~ presented All Indications now are.
however. tha& the current drive 10 TO
be more serious and more determined
than any yet undertaken Whether Il
caA succeed obviously depends upon
the attitude Of tie taxpayers Of he
country hscausA after I'll, Il y ,h>y
whs must pay he blu. A far ~ tAA
unlsscurveot Of planning has roas, Il
u made u appeAr that IL esvsru.
..enk, II legislation 70 taAs over he
railroads = soscted, Hsrpay vu trade
Fts bonds TT the outstAndlns Aeads Of
the YailraAa oesposaleA That means
\ corresponding addition = TIE ~
dsAt.
Nsv pAk ~ nsAA
TAs latest TreasuSy Aguss On he
aationai deS& show outstanding obii.
Of approximately k7.2oO.0ou.
700. This IL larger than TIE total Of
The national debt At IT. peak 1t the
md Of the World Il 10 costing
he taxpayers roughly one billion dol.
ar1 q year n interest alone to carry
his gigantic total. And President
Roosevelt not 80 Ions ago stated that
70 expects to run the total of the ma.
tonal debt At least to SS1, OOQoOOWO
the course OF recovery end relief
expenditures.
The addition Of $12, 5OO,OoO,ooo to
his Notwithstanding that such lexfsia-
ion - has been considered could Be
ut through the congress-mcans a
debt Of around $f0.NEl.0 OO,-
100. II ean further that, ut the
resent average rate Of interest paid
government secuntas. the taxpay.
"a would be called uiAon to suppty n.
sost one and one-haN hiuioa dollars
ach year to pay the interest without
ny eonsidsrstios heing given 10 sol.
,ction Of enough taxes 70 retire mart