The Washington times., 1936-01-28
By WILLIAM H. MURRAY

Tar EQudLtty, OF Enlu, ONLd"
Now, let's analyze the purpose
Of the Association for Economy
and Tax Equality.
This association has back Of its
entire purpose, the principle of
labor, thrift, and economy, for
the government must set the ex-
ample and practice the lessons
Of economy and integrity If they
expect the citizen to do so.
Under our declaration Of prin-
cipleS, we say:
l. Honesty, Economy and
Efficiency In government" As
an abStracs principle, all will
profess to agree to that declara-
ton; and therefore, l shall not
stop to argue 1t here.
2. The second declaration, we
announce: Tax equality; No one
exempt" That principle will
readily be agreed to.
3. Balance the budget by
lowering the cost Of the govern
ment." This one is often queS-
toned.
The meaning of balance the
budget" is to spend no more than
revenues bring in; in other words,
that the expenditures shall not
be greater than the tax collected,
because if we spend more, deficits
are created, which become debts,
which increases the overhead, re.
Sulting in additional interest pay
mentS; a burden on the taxpayer
and on future generations whom
we have no right to burden; and
If the deficits continue until these
debts increase to an unreasonable
proportion, it often results in in
flation Of the dollar and if ex-
tended. as has been done in some
countries, the money will grow so
worthless as to nc be worth q
continental dam"
Destroys All
This destroys the laboring man,
the salsried and professional
classes, because their money will
not buy their needs.
1t will destroy the man who
saves and invests his life earnings
to take care of him in his old age.
It will mean wreck and ruin
permanently to private enterprise
and to the government.
4. The fourth principle Is a
kindred to the other, or merely
declares a method.
We say: Begin paying off and
reducing Government debts, Ma
tional, State and local, that cost
of living may be reduced"
And I understand to say that
there are enough excess clerical
force, bureaus and excess salaries
in the Government to pay the
national debt in 80 years; and it
must be paid, either by reduction
Of the cost of government or in
increased taxation.
5. The fifth declaration is
Take the government out Of in
come producing, nOn-tax-paying
business"
The doctrine Of government
ownership is attractive TO the
juvenile mind of a budding states
man who lacks experience to
understand the effect and conse-
quence Of the vicissitude Of
politics.
Before the World War there was
q great demand for government
ownership of railroads, but when
the Government took complete
control during the World War you
never heard of government owner
ship for many years.
They got enough when they saw
freight rates go up and the gov
ernment being obligated to COM
pensate the railroads to the tune
Of hundreds of millions of dollars
for the deficits it created in its
operation of them.
The Distinction
But mark, there is a distinction
between government ownership
and government operation.
The Government may own a
business with safety, but it can
never operate it.
The Bolivian and Peruvian
governments, and to a large ex-
tend Argentina, constructed their
own railroads. They own them
because construction in the An
des Mountains was so eXorbltant
that it was impossible to provide
capital with any earnings.
To illustrate, there is the Peru
Wan Central Railway, built by
the American, Henry Megg; begin
ming at sea level, it climbs the
Andes Mountains to 1896 feet
(more than a thousand feet
higher than any mountain in the
United States), passes through a
three mile cut, with $500 feet
above it; descends down to the
Auto-piano" to 1000 feet, and all
! in 80 miles of trackage.
That is a most necessary road,
constructed by the government at
cost of $3.50, ,0O0, 900, but they do
not attempt to operate it. They
long since learned that it would
not do, because politicians would
not think of making the railroad
earn, but would think of how to
satisfy the employees of the rail
road.
Pays No Interest
Sixty odd years ago they leased
this railroad to the Peruvian
Corporation, for period OF SO
years, to operate it.
1t will never pay, even the
smallest rate of interest on the