The Nonpartisan Leader Newspaper, August 2, 1917, Page 9

R e A g AND- [ bLARIQus FEFLINC < \\\\ e FAR AN SQunRe o RE - i ¢ < < AT FRANH - CHAN EY L ~ Let Government Run the Railroads Bill to be Introduced in Congress to Take Over Privately Owned Lines Through a Public Corporation—Pay for the Roads Out of Earnings BY PEOPLE’S NEWS SERVICE New York.—Public ownership advo- cates throughout the country are be- ing orgamnized for a concerted drive in support of a bill for government oper- ation of the railroads, drafted by Fred- erick C. Howe, commissioner of im- migration for the port of New York, about to be introduced in congress. The bill creates the United States Railway corporation, with a board of eleven directors, 'of whom six would be appointed by the president and five designated by the railroads country, This corporation would oper- ate all railroads, paying to the stock- holders’ the average rate of interest and dividend payments received during the last ten years." The balance re- maining . after paying operating ex- penses and providing a depreciation and maintenance fund would provide permanent improvements- and exten- sions, and the surplus would then go into a sinking fund for the purchase of the properties and secuTities. A saving in transportation cost of more than a billion dollars a year is claimed for the bill. : Copies of the bill have been sent to all members 'of congress, accom- panied by a letter from Mr. Howe, pointing out the need of government action /to ,meet the break-down of the. country’s - transportation facilities. . ROADS WOULD BE GOVERNMENT’S AT ONCE A ‘memorandum accompanying the bill says in part: “The purpose of this proposal is to place the railroads of the nation in the . hands of a corporation, like the federal shipping board, to operate t\hem in trust amd pay for them out of earn- ings, and to secure for the nation' the advantage of government ownership under the form of an operating cor- poration. 3 of the “Under the proposal the objections to government ownership are elimi- nated. The following advantages will immediately accrue: “The railroads become in effect government property immediately, without waiting for prolonged contro- versy as to the basis of valuation, payment, etc. All these questions may be deferred until after the war. “The railroads will be operated as a’ unit. The waste of two hundred odd separate railroads, each struggling for traffic with useless competition, car shortage, terminal congestion, etc., will be open to immediate correction. ‘SIMPLIFIED RATES WOULD BE EFFECTIVE “The economies from such consoli- dation will be colossal. Terminals could be consolidated. Cars could be operated at full capacity. The struggle for freight business by competing roads would be'eliminated. The sav- ings from increased efficiency and _elimination of wastage would prob- ably run into the hundreds of millions of dollars. Thousands of law depart- ments could be dispensed with. Mil- lions ,could be saved in the financing of security issues, from commissions, interest upon deposits and other sources. Hundreds of boards of direc- tors could be dispensed with, as well as thousands of high salaried officers. Ultimately there- could be a reduction of from $200,000,000 to $400,000,000 a year in interest charges, for the gov- ernment can secure mdney at 3% per cent interest. + “Freight rates would be immediate- ly simplified. Millions of useless com= plicated rates and charges could be ended. Very simple classifigations. that would be understood by anybody, like those that prevail abroad, could be substituted. ; “The net earnings of the railroads in 1916 amdunted to over a billion dol- lars. In addition, over $300,000,00\0 in . new income through increased rates League in Wisconsin Idle ‘Hour Theater, East Troy, one. of the finest places of its kind in Wal- worth county, was filled to overflowing Tuesday evening by both men ‘and women. The great audience gathered to hear Hon. J. N. Tittemore, of Omro, the organized farmer orator and rail- road ‘rate expert, deliver an address on the necegsity of a farmers’ Non- partisan league in every county in Wis-\ consin, For over an hour, Mr. Tittemore held his audience at times almost spell- bound, when he read from history the sayings of great Americans and what they predicted ifi the farmers of the United States failed to guard their PAGRE rights and privileges under the con- stitution. Lincoln’s advice and warn- ings were referred to by Mr: Tittemore with telling effect. ‘“Henceforth,” said Mr. Tittemore, “the farmers must be nonpartisans. They must go to the primary and nominate only good men for office and then ‘back their primary act by going to the polls and voting to a man for the choice of the candi- dates indorsed by the Nonpartisan league.’”- A large number of farmers signed the nonpartisan honor roll.. It was also decided to put organizers to work in Walworth county August 1. Rah for Walworth ceunty!—EQUITY PILOT, Milwaukee, 2 is heing demanded. Any surplus, which might amount to a billion of dollars, would go to the government. “Millions of dollars now disbursed for the interstate commerce commis- sion, and state railroad commissions for endless litigation would be saved. “In additioh, and this is probably the greatest economy of all, the rail- roads are being enriched year by year by increasing land values, tim- ber values, coal, oil and other land values. It has been stated that there is nine billions of dollars of value in the claimed capitalization of the railroads from alleged increase in land values, rights of way, terminals, etc. This increase is at the rate of from 5 to 8 per cent a year. Under the plans pro- posed the hundreds of millions annu- ally added to railway values. would b saved to the community. G ONLY COUNTRY NOT OWNING .RAILROADS “Rebates, discriminations and privi- leges- would be ‘ended; the political activities of the railroads would be at an end; coal mines, great stretches of land, over 100,000,000 acres ‘of timber property, and oil land wo6uld imme- diate]y pass to the goyernment. “The identity-of the Trailroads with great trusts, monopolies and privi- leged interests would be ended. Most of these are now owned or controlled by the same interests that own or control the railroads, as indicated by the report of the Pujo investigating committee.” The United States is today the only important country that does not own and operate its railways. ‘The Joseph Fels International com- mission, through. which the campaign for the bill is being conducted, appeals to all who approve the proposal to write their congressmen and other-' wise aid in the passage of the bill,