The Fort Peck press., 1934-10-04

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Would Increase National
Debt $12, 500, 600, 600.
WASHINGTON.-In the midst of
all of the other uncertainties for
business, a new attempt to bring about
public ownership Of all railroads is
peeping above the federal govern.
Inent's horizon. Depression conditions
have made the time opportune, many
government ownership advocates be-
lieve. They are prepared to start an
intensive drive, and they have In mind
a definite proposal under which the
railroads might be acquired.
Their program, OF course, Is incom-
plete but the understanding In Wash
ington Is that a draft already has
been made. Its sponsors chiefly are
among the Presidents advisors. While
much secrecy surrounds the program
and the whole scheme probably will
be held confidential for some weeks,
1t Is nevertheless an established fact
kiisl SOLLC VA tAC VI ltdolGlo "
hope they can push the question of
government acquisition Of the rail-
roads into the hands Of the next con-
gress.
AS far as Is known in Washington,
1t Is not generally expected even by
the ardent advocates of government
ownership that legislation can be put
through in the session that convenes
next January. That fact, however,
is said not to have deferred them In
their efforts at all. If they can devel-
on strength In the next congress, they
propose then to put OF pressure look
Ing to success In the succeeding ses-
sion.
The Shareholders Prospects.
OF course, as stated above, the pres
ent movement has not taken shape
at this writing to permit definite state
ments on the character Of the plan
still largely In the minds Of some of
the brain trusters. 1t can be set down
as a fact, nevertheless, that basic con-
siderations thus far receiving atten.
ton from the government ownership
leaders contemplate virtual destruc-
ton Of the rights OF shareholders in
many of the country's railroads. This,
according to the latest Interstate Com
merce Commission figures, means that
more than 10000 individuals would
see their certificates of stock convert
ed into nothing more than beautifully
engraved pieces of paper; there would
be no value left.
1t Is the understanding here that
some Of the brain trusters believe the
railroads can be bought from their
present OWNERS for exactly the amount
Of their bonded Indebtedness. The
Interstate Commerce Commission re-
ports the total outstanding bonds Of
the railroads to be about S12,4OO, 0OO,-
900 and 1t also says that the total
value of the roads Is about $4,000
OO0,00O. From these figures it becomes
apparent, therefore, that II the move
inert to take over the railroads on
the basis cOncocte5 by some Of the
government ownership advocates we're
to be carried through, the government
would acquire the railroad properties
,or about half of their value as rep
resented by their capitalization.
Not since 1920 has the subject of
government ownership been vigorous
y presented. All indications now are,
however, that the current drive Is to
}> r1a-o oar1A,,o orI r,a-a 4o~,za
than any yet undertaken. Whether 1t
IAN succeed obviously depends upon
the attitude OF the taxpayers Of the
country because, after all, 1t Is they
who must pay the bill. AS far ms the
undercurrent of planning has gone, II
Is made to appear that the govern.
lnent, If legislation to take over the
railroads Is enacted, simply Will trade
It's bonds for the outstanding bonds o:
The railroad corporations. That means
Il corresponding addition to the ma
t!onnl debt.
New Peak for Debt.
The latest Treasury figures on the
national debt show outstanding obi
cations Of approximately $2T, 2W, 900,
10. This Is larger than the total OF
the national debt Mt its peak at the
end of the World war. II Is cnst:ns
The taxpayers roughly one billion dol
lars a year In interest alone to carr,
this gigantic total. and President
Roosevelt not SO long ago stated that
re expects to run the total Of the nj
Llonal debt at least to $31 0.000,00U
in the course of recovery and reTie:
expenditures.
The addition of S12,J0O.0 600, 900 t,
this Notwithstanding hal such legi<la
ton AZ has been considered could br
put through the congrcss--rneans
national debt OF around S40,0U0,Un
100. II mea further that. at III.
,reeent average rate Of interest pail
IN government securities, the taxpay
ars would be called upon to supply nj
most one and one-half billion dollar.
each year 10 pay the Interest, withoul
any consideration being given TO col
lection Of enough taxes TO retire part
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