The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1935-05-02
Congressional
News Letter
(By Harold Knutson,

We hear a great deal about the
government in business these days
and it may be news to the average
American that his government has
heavy investments in railroads,
banks, bonding companies, insur-
ance companies and even utilities.
Down in Tennessee Uncle Sam Is
developing one Of the greatest pow
err projects in the world and he has
already sunk several hundred mill
hon dollars in the proposition
Power lines have been constructed
to parallel privately operated lines
and in most instances the private
companies have been compelled to
sell to the government.
SO many people have an idea that
the government can operate an ac-
tivity more efficiently and econ
omically than can privately con-
trolled companies but I have yet to
see one instance where such Is the
case. Invariably government oper-
alton means politics, favoritism,
waste and graft.
A friend recently sent me a state
ment of the railroad situation in
Canada. Canada has two great rail-
road systems, the Cnadian Pacific
which is privately operated and
owned and Canadian National Rail-
ways which are government oper-
ated and owned. Both roads charge
the same rates and serve the same
territory. Neither one has any spec
ial operating advantage over the
other except that the government
operated railroad has big advan-
tage in the matter Of taxes.
The balance sheet of the Cana
dian National Railways shows in
its latest published statement a de.
ficit of $748,412, 634.47 while the
Canadian Pacific Railway, which
is privately owned has paid out
nearly $500, 100000 in dividends and
interest during the same period.
The privately operated road shows
a profit Of nearly 500 million dol
lars while the other shows a loss
of $750,000,00O. said a moment ago
that there was no difference in the
rates over the two roads but there
is a difference. When the shipper
over the Canadian Pacific pays his
freight bill he is through with his
expense. When the shipper over
the Canadian National pays his
freight bill, he is only partially
through paying. He still has his
tax bill to pay and over half Of his
taxes of all kinds paid to the gov
eminent go to wipe out the oper-
ating loss of his government own
ed and operated railroad.
Let us look into the difference in
the construction cost of the two
railroads. The governments invest
ment in the Canadian National
is Sill 300 per mile of track while
that of the Canadian Pacific is
$54,700 per mile of track. The pri-
vately owned railroad was built as
a business proposition. The govern
ment railroad was built to provide
jobs and juicy contracts for pol
itical friends.
We are hearing much about the
government taking over the pub
lie utilities in this country. It will
be sad day and an expensive ex-
perience for the American people
If that time should ever come. Is
not the tax load of the American
people sufficiently heavy at the
present time? DO we want to add
and add to that load until it be-
comes so heavy that 1t is going to
crush us?
am very much disturbed over
the socialistic tendency Of the
administration. He has
himself with lot of
brain trusters as economic advis-
ers who are at heart socialists and
communists.
DO we want to surrender our
freedom by turning this country in
to acoportare w53hu
to a corporate state where the gov
eminent would own and operate
everything including agriculture,
wherein people would be but cogs
in a vast bureaucratic machine
made up Of graft, politics and favor