The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1936-11-25
AN EXPERIMENT. IN GOVERNMENT
OWNERSHIP


facts known in this country is the fact that
the federal government has never been
successful in operating industries or ousl-
ness in competition with private enter
prises. John E. Edgerton, President of the
Southern States Industrial Council, an or
ganization of southern manufacturers, who
is certainly in position to be cognizant OF
the details and facts in connection with
such operations in this section OF the coun-
try. cites the history of the Federal Barge
Lines of the Inland Waterways Corpora
ton as an example of government compe-
tition with private business. This is not
new deal experiment" but is one that
dates back to 1918. Some of the pertinent
facts in connection with the barge line are:
Mr. Edgerton cites a financial statement of the
Federal Barge Lines doing business since 1918 on
the Mississippi, Illinois, and Warrior Rivers. The
statement he said, showed that from 1918 when
formed by an act of Congress- until 1924, when
a corporation was formed, the system showed an
average annual deficit of SS72,52O.
Most of the revenues collected by the system,
coming from cotton, sugar and other products OF
like, nature are taken from Southern and Midwes-
tern transportation agencies, operating IN the ter
ritory and paying high taxes for the privilege.
The barge line, although the Inland Waterways
Corporation is only subsidiary formed in 1924,
as an experiment in economies is operated at
government expense and with taxpayers money.
Some s24,000000 has been put into towboats,
bartes. and other facilities required for operation
on the three rivers, he added, in competition with
l.. apd Of
1, The barge line enjoys the free use of untaxed
waterways which have been improved at the ex-
pense of the taxpayers.
2. The barge line does not pay for the use of
the taxpayers money invested in its untaxed prop
erty.
81 The barge line pays nothing toward the up
keep of the waterways the operation of locks
and dams used. These expenses are borne by the
taxpayers
4. The barge line uses untaxed river terminals
built at the taxpayers expense. The rental paid
for their use is in most cases below cost. Taxpay-
ers make up the difference.
5. The barge line is virtually free from taxation.
81 Port-to-port freight rates by the barge line
are wholly unregulated.
al The barge line is virtually free from regula-
ton. as to wages and working conditions affecting
its employees.
8, If the barge line were required to pay its own
way and to bear its share of the tax burden, 1t
would have to increase its rates substantially above
preyent l. c. C. rates to make ends meet.
The history of the barge line is the his
tory of all similar government expert
mehts." The barge lines are operated al
heavy loss in spite of all the advantages
enjoyed as government agency, and the
money of the taxpayers of the entire Uni
ted, States is dumped every year into this
rat,hole to cover the deficits.
Nobody is benefited by the operations
of the barge lines. Much more efficient
and satisfactory transportation facilities
areioffered by the rail and truck lines and
other privately owned enterprises. As to
thesrates charged by private carriers, they
are under the ironclad control of govern
meht, federal and State, and can be fixed
at whatever government desires, so there
is absolutely no need for the barge lines to
project shippers from exorbtant rates.
The fact is the only thing they accom-
plish is to make trouble for private bust
ness at the expense of the taxpayers and
to show the extent to which government
ineficiency, extravaganza and tyranny has
been allowed to go in this country -