The Nonpartisan Leader Newspaper, August 19, 1918, Page 11

v B~ - < - - " - -~ _b! A a __gators from the files of the Cudahy “there would have been much more difficulty & [ 23 making adjustments with ‘the private owners. It might seem that the simplest as well as the fairest method would be for the government to lease the roads and pay to each corporation the rental agreed upon. But the situation is far from being so sim- [!le as that. The government is abandoning some lines-entirely, while § is greatly expanding the facilities of .others. It finds some roads fairly well equipped, while it finds the equipment of others S0 run down that it~ is almost impossible to con- tinue operations; except at the expense of great outlay for repairs and renewal. How much earn- ings is it going to guarantee to such roads? The - government is to guarantee net earnings equal to -the three-year pre-war average, but some roads took good care of their equipment, while others worked the roads nearly into the scrap-heap in order to-pay dividends. Clearly it would not be Jjust to guarantee equal earnings to all, nor to both build up these run-down roads and guarantee divi- dends equal to those they managed to pay before }:{he war by making insufficient provisions for up- eep. The policy of the director seems to be to compel the owners of these run-down roads to make the repairs the government finds necessary, as a con- dition to. their receiving the guaranteed rental, That is, the director takes the position that no re- turns shall be guaranteed to.a road that is not in a condition to earn them. One company complains that it is required to expend $16,000,000 on im- Provements, while its average yearly earnings would not be over $3,500,000. That is, it would take nearly three years to pay for the improve- ments out of earnings, so that if they are made the company can pay neither interest on its bonds nor dividends on its shares of stock during the war. But if the road preziously paid in dividends money that should have gone into improvements, or if it ran down through bad management, the position of the director is entirely justified. That is just what the road would have had to do, if the government had not taken charge—either that or bankruptey. SABOTAGE BY THE FINANCIERS It is becoming more evident every day that the railroad interests and the financial interests con- nected with them are not unitedly co-operating with the government. It may be expected that they will lose no opportunity to saddle upon the administra- tion the ‘responsibility for all the bad results of years of maladministration and reckless specula- tion. Already they let no opportunity pass to try to show that the cost of operation is enormously greater under public than it was under private management. The capitalistic press is a unit in charging up the advance of rates to the adminis- tration, though the roads constantly asserted before the war that they could not run without an advance in rates. If they could not get on without higher rates under peace conditions, how can it be expect- ed that the government will be able to run on the old rates and meet all the exigencies of war? Whether government operation prove a success or a failure, a serious dilemma is presented to the owners. If it is a success under war conditions, the people will undoubtedly demand that the roads be retained. If it is not a success, the owners will have to face the problem of building up an efficient system, if the roads are returned to them. What they would like to have, and what they are de- manding, is a guarantee from the government to return the roads in as good condition as they were when it took them over. That is, they want to be made safer in war times than they were before the war. In many cases they admitted they were fac- ing bankruptcy, unless the interstate commerce commission would allow an enormous increase in rates. So it appears that they were almost on the rocks at the opening of the war. Their proposal would give them assured income for more than two years, and leave them in no worse condition than they were before the war. This is a good example of what some business interests mean by making sacrifices to win the war. They risk nothing. They will be content with a little less than the whole advantage they might have got, if they had been allowed to take all the profits they could have got out of war conditions. Considering all the complications of the railroad situation, IT DOES NOT SEEM LIKELY THAT THE TRANSPORTATION SYSTEM OF THIS COUNTRY WILL EVER GO BACK INTO PRI- VATE HANDS. It is quite likely that the own- ers themselves will finally make a proposition that the government pay for and keep them, unless they can have their way in the making of the rental contracts, and it is very apparent that Director McAdoo does not intend to let them have their way. THE PEOPLE WILL WELCOME GOVERNMENT OWNERSHIP. They do not want to repeat the experience they have had with privately owned railroads. Thus one after another the private monopolies of the country’s industries is swept away. The people will triumph and democracy will come into its own. 'The Packers Prepare for a Hard Tussle HE -United States government probe of the big packers has revealed their connection, with anti-farmer polit- ical activity. Ac- cording to a mews 2 dispatch from Washington, D. C; important docu- ments were seized by federal investi- Packing company showing the con- nection of the packers with the fight on the Nonpartisan - league. The financial and moral aid of the pack- ers was sought in the campaign against the organized farmers. - Frank I. Ringer of the Nebraska - Manufacturers’ association wrote the following letter to W. R. Murphy, Omaha manager of the Cudahy Pack- ing company, which letter is made public with the government inquiry: . Dear Mr. Murphy: While in Chicago a short time ago I had a very interesting interview with Tom Creigh, general counsel of the Cudahy Packing company, relative to the co-operation - of your Nebraska plant with the Manufacturers’ association. The directors of the organization have been making a close study of conditions and we feel that the present year will undoubtedly be the most strenuous since our organization in 1912, No one can foretell the outcome of the Non- partisan league movement in this state, which seems to be gaining headway. : Even though the Nonpartisan league should be unsuccessful, I anticipate we will have .more freak bills in the coming legislature than we have had at any past session. In anticipation of a strenuous year, we are making an unusual effort to very closely or- ganize our forces so we will be ready to meet whatever emergency shall arise. Inasmuch as your company has such large interests-in Ne- braska, I feel certain your company will want to give our efforts your hearty and cordial as- sistance, because it means much to you. . I had already explained to you what our association has accomplished in regard to. the corporation tax law before the 1913 legisla- ture. That you may refresh your memory, I -am inclosing folder showing the changes wun- - der the law as it passed, the difference between _ the two being the amount saved to you by ‘the - FRANK I. RINGER, association. A - Commissioner. Geb the ful significance of this remarkable let- Federal Investigators Uncover a Letter Showing How the Meat Trust Fears the Nonpartisan League On the farm of a Leaguer, T. G. Ott of Tilden, Neb. Read this story of how the packers in his state are worried over the growth of_ Nonpartisanism. ter. . Do you notice anything in ‘it about the League being “disloyal,” or “socialistic,” or about “Townley,” or about anything else that the hired editors have been playing up as reasons why the League should be crushed? The Nebraska Manu- facturers’ association and the packers do not care anything about those things. Those things are mere camouflage. They mean nothing. So this letter gets down.to business and tells the REAL REASON for the desperate fight that is being made on the organized farmers. The letter says that this packing company “will want to give its efforts” to fight the League because it has “large interests” that are threatened by the rise of the Nonpartisan league! : : That is the reason for the fight on the League. “Large interests” are menaced because the farm- ers intend to have fair dealing and justice from the great: monopolies. asked because the farmers are “disloyal”? How silly to ask such a question. The packers know “disloyalty” talk is-all political buncombe; indulged in to conceal the real motives, which are “large interests” menaced by the League program. Was the aid of the packers asked because some- thing is wrong with “League leaders”? Sure not! The packers and the manufacturers’ associations do mot really ‘care about a little thing like that, = except as it ican be use;l to conceal the real, reas’og Was the aid of the packers - for their opposition, which is “large interests”! You have heard about the League being “driven out of Nebraska”’— about it being “dead,” about the “farmers repudiating it,” and all that sort of thing. You get that out of the papers edited by the men hired by the Manufacturers’ association and the packers! But when these big in- terests are talking together confiden- tially they do not kid themselves with such talk. You bet they don’t. This is what they say when they, are talk- ing FACTS among themselves: “No one can foretell the outcome of the Nonpartisan league movement in this state, which seems to BE GAINING HEADWAY.” When they are trying to deceive the public they tell about the League be- ing “on the down-grade” and “about petered out,” but do not believe for a minute that they are deceiving them- selves with the dope they are peddling through their kept press. Not much! Between friends—CONFIDENTIAL- LY—they say the League is GAIN- ING HEADWAY! They say they are expecting “a strenuous year” on account of the. growth of the League! YOU BET THEY ARE— only they do not say so through their press, but only in confidential letters! 7 Here is another thing not to overlook in this letter: Notice it says the packers are willing to come through to fight the League because money. spent in the past for similar political fights against the people has been well spent! The letter says that the Manufacturers’ association HAD THE CORPORATION TAX LAW AMENDED TO AID BIG BUSINESS, ESPECIALLY PACKERS. But the packers and the Manufacturers’ association are not in politics. Oh, no! Sure, farmers have no business in politics. Leave that to the Manufacturers’ association and the packers. They will see that income tax laws are amended to be favorable to corporations and that the League is fought! But that isn’t “poli- tics,” they say. After this letter, do you want any more evidence of the real reason why the big interests and their hired editors are.fightipg the Nonpartisan league? POOR PROPAGANDA Editor Nonpartisan Leader: 4 The Midland chautauqua held here was a regular anvil chorus against the League. 7 comebacks in the local papers, however, and any amount of street discussion.. ERNEST WYKES. = And for that reasonm . FARMERS SHOULD KEEP OUT OF POLITICS. Humboldt, Io_wa, ' We got two et S sl s e i e A 1735387 e 3 i i 8 e e e o e e