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V THE OREGON SUNDAY JOURNAL. PORTLAND. SUNDAY MORNING, NOVEMBER 25. 1906.
Government Ownership of
' - a
. 1 -rrfv-v
'x . , , j a-: " ' - Lat"' 1
' Government ownership of railroads la
" BUDnortAd . not only upon negative
ground, but -pt strive advantage- are
' ursnd In It favor. Prominent among
thera are: . ..
1. Physical economy.
I. . rinanclal economy,
distribution of Indue
distribution -of -eenv
4. - Economic
. . Abatement of speculation. -'"'
. ' Abatement of plutocracy, ,
o" 7,"jtilt.ble dtffuHlon of wealth.
'- 8. - Incidental benefits,
""itho railroads aa a prlvata Institution
can not be- exported to, grant popular
rights." lYlTate ownership Invites prt
ale control and thereby coinels. war-
C P, Strain, Amiwr of "Umatilla
:"r . '- , County . '
fare between publlo and prlvata Inter
r , eats., v v -,' ,
Rata ' regulation doe not go to the
root of th disease;.:, V , '
" -The ,. fundamental natur"'Of a law
' ftriotw i, not invite i tta own violation.
Rata regulation doea this. - Capital ta
i.' the servant of Its owner. Private capl
: "tal in ' rallroada will serve prlvata In
terests. ' - ' ' '-
. Public opinion; may compel occasional
... resistance of ihie principle. ...,- .
It may elect a president now ' and
..".then in sympathy with itself. But so
long as- the motive for a wrong re
. mains, laws . agalnat it can ( not be
wholly successful In any case.' : When
a. motive for k resistance ,1a held by 'a
. .powerful ' element Mt - tne oommunlty,
chances of success are . accordingly
A distinction should be made between
, corporate investments and prlvata onea.
A - corporation , la merely a money
- But when a person Invests In a home.
i ; ha attaches to himself something more
than a' profit getting machine. He ac-
quire a possession susceptible of sen-
, tlmental association.' '
, . ' . The artistlo aide of his nature'' may
blossom from the buds of his tree or
vine,. .His ethics may thus Indirectly
-. find expression In the happiness of hta
family. , , - (-. ..
' : Whether his children go forth Into
. . this world or whether they pass beyond
It, they leay 'aweet memories associ
ated with every attribute pftnhomJ
'. Such a possession should be private.
It la to' delleately-sacred-1 admit of
Merely mule atifhway.
' There Is. do fundamental difference
between wagon, roads and rallroada.
".Public railroads are -merely an. exton
""Ion Of publlo highway.
The chief distinction is that the lii
' dividual, . using a wagon road., supplies
aulpment. while government
-rallroada relieve htm of tola .outlay and
charge a f eeiinlleu.pf.lt:
pace7orbids the demonstration, but
I have ascertained by. a conservative
comparison, that' free publlo roads cost
the people of this country at the rate
' of 19c per load of produce, all other
, uses being free: that toll roads, could
; not afford to charge leas than 60c per
"load, for J he same service.
. ' rayalcal Xooaomy.
- Rival Interests, under private owner-
: ship, often duplicate facilities. That Is,
two roads are built where but one Is
Duplications of depots and terminals
The North Bank road down the Co
. lumbla, and - the projected , Harrlman
1 road from Portland to Seattle are cases
.'- Ill point.
These roads are not . economically
- needed. ' The traffic which the North
. Bank road Is destined to-carry could be
transferred by bridge across . the Co
' lumbla In Umatilla county, and thence
. carried over, the tracks of the O. R.
J., to Portland. - This would save two
, or three . hundred miles of road and
' many millions of capital.
Duplications are not only expensive
In material 'and labor," but they raise
rates In the end. They pile up capital
, to be supported and divide traffic with
. existing roads. Little traffic and much
, capital furnishes a legal excuse and a
; financial neceaslty for high rates,
Government ownership would ellm
. Inate future duplications of construc
tion and existing duplication of opera
1 That It would do so Is proven 'by ab
sence of duplications of public roads,
public school buildings, etc.
Government bonds, being safer than
-: other security, - and affording also a
. basis for national bank currency, com
mand purchasers at lower Interest than
'any other jci of rrodtta.
".. The Interest benrlng Indebtedness of
. the t'nited BUtes In IS04, the latest sta
: tlatlt lust now at hand, bore an aver
ege of birt-t4 per rfiit. Bg1troaa"bdhdi
.of the same date bore 4 1-3 per cent, or
1 7-12 per cent more.
Government bonds couk; not be ex
. changed for thesr- railroad bonds at
. once. But the oomprlon serves to In
i'dicate a large probable future saving uf
Interest. A saving of 1 per cent upon
't the present outstanding railroad bonds
'amounts to t8l.72?.2."3.r.O per annum,
The average return In dividends and
surplus upon rail rofl stocks was .4 3-1
per cent., A saving of 1 per cent could
.certainly be made by exchange of
bonda-Xnr.JLheie,Trils wuld,ii4nount to
3,S8.9I.2 per annum.
"Thse AsSUhieir saving nf per cent
are based on government bonds at 3 1-3
per cent and at 3 2-5 per cent respect-!
; Ively. They couia proDBDiy be floated
' for much less.
The caplUUsatlon upon which they
"are based exceeds actual value by II,
968.371.419. . '
A savins? of 4 1-1 per cont on this Is
' gKS.291.8W.09. The sum total of 188.-73J.253.60.-
t8.398.93.t9 and $15,291,
814.09 le' 82l7.42J.043.88, which equals
the. net savings from government
financing In, Interest, dividend and sur
plua, ' '
Oest f Betterment.
But this la not alL W must add cost
of betterment and extension paid for
ut ef .railroad earning.
The total earnings and Income for
104 were 62.113,109.011. while the total
fixed ehergMi and roat of operation
were but 11.909.322.166. 1 Subtracting,
we Uav a difference of f 278,786,128
lf. B. Railway Statistics for 1804,
Thle. 8278.785.828 must have been ex
pended for betterments -and e tensions
of roads and terminals. Adding this to
saving - tn Interest . nddlyldenda we
have 8488.208.388.88. . .
But this Is not alL penalty ef traffic
adds capacity for earnings. Increasing
population.- therere; . appreciates rail
road property. -; . , ,
Thatit-4ia been rising rapidly In
value is' fact of common knowledge.
Hut the extent of euch rise la scarcely
appreciated. -I Introduce a tabje com
piled from the.maraet report o uep-
tember. 1801. and September Is. ISO,.
It covers the first ten railroad, atorka
auoted on the latter date and also quoted
in report or nrijirmuni , iw, nw.,.
values of stock are computed by adding
the price of the different classes and
dividing their sum by. number ; of
classes Issued: .,
. 1 (-4 t
.10 1-8 '
Chi.. N. W. . ...
Coll A Southern
Denver & Rio Grande,
Krie ; if-.-.-...
...14 1-4 .
Louis. ' Nash. . ... .
New York Central.,
N. X., Ont. ft West-.
:i2 - 14 t-4-1
. 20t-l 4tl-t
Total ..............101.681 1.328.488
Average 01 l '
Average Increese 4.ir
Increase per cent - M.i
This showing Indlcatea a gain or more
than 10 par cent per annum on atocks.
- Annnal Appreciation la Taloes.
But I will aasume a yearly apprecia
tion of only 3 pet cent on the entire!
value of railroad property of the coun
The latest .official estimate made In
104 places actual value then at 111.
244,853.000. Two per cent upon thla is
897,040. Adding this to the sum
obtained by uniting betterments, ex
tensions, saving of interest, dividends,
etc., we have IT21.108.02t.88 aa the total
annual financial economy promised by
T Nor is this all. There are other Items
upon which there arc no available data
to base an estimate. ...
Millions upon millions are believed to
be expended In campaign contributions,
In lobbying. In legal retainers, and In
various methods of corporate control of
the laws. f ', J
The sum of $47.J74.10 Is reported un
der the head of "Other Deductions."
Ar. official recently upon the stand In
Minnesota, testified that the money
used In Wisconsin toward the defeat of
La Follette was charged to operating
Wages yet remain to. Increase expense
of government' ownership over private
ownership. Whether or not thla would
Interpose to offset theenorroous saving
otherwise Indicated, can only be conjec
tured. - The publlo service baa always
been attractive. ' ;
The wage scale of the army and navy
Is probably lower than any acale aid
by a private, corporation for a service
of corresponding skill and efficiency.
.As already suggested, any single man
agement whether government or private
would save largely by elimination of
But let us overlook this, end assume
an increase of 38 per cent In labor coat.
Total labor cost for 104 was 1817.-
698.(10. Twenty-five per cent of this
Is 8304.399.703.60. Subtracting this from
I7J1.108.02S.88. we have a net saving
Of 1518,701.824.88. .
: Distribution of Industries.
There Is a spot where the elements of
Industrial economy unite. That Is. thsre
I is s place where -particular crop, ur
manufacture, can be produced more
thranlT than alnnwhrrn
Under free and natural condition, the-4
manufacture of Iron, for Instance, will
be carried on where a preponderance of
these clement unite. Cost of labor and
proximity of mines, power and market
are the factors of economic control.
.But whether private Interests .now
obstruct thla law more than, political
Influence would do under government
ownership. Is a Question which can not
be answered authoritatively In favor of
Beonoml Dlstrtbatloa of Commerce. .
What hss been said of dlstrtTMjtlohTdf
Industry may be said with equal force
la regard,, to commerce.
- Political Influence might prove as
strong a factor In discriminations
agalnat cities and communities aa pri
vate Interests now are. We can Judge
only by the postal service and appropri
ations for rivers and harbor, etc. That
a fair distribution of these I being
made and that adequate service has
been rendered will not be disputed.
Abatement of peoolaHoa.
Government ownership would remove
railroad stock from the slock market
They are a subject of more gambling
than all other stock combined. I have
before me th stock market report of
September 18, 1900. The stocks of 66
Industrial concerns' are quoted; and of
these It are rallroada, am against 19
for all other.'. ' t
That ales mad unon the stork mar.
ket are little short of ordinary gambling
1 a faet of common knowledge. It
scsrceiy need proof. But shouM
desire confirmation, they can find It In
the violent fluctuations of stocks.
Any msrket price, based unon lec-ttl-
mate business, will not materially
change under uniform condition. -
iei extreme fluctuations of railroad
tock occur without change of manaa-e-
in mi, famines or prospect.
wwfwv, roiirv tnese stocas and SUbSti- I
tute United States bond.
That plutocracv fattens
lege and that It extend It power from
the proceed of privilege Is self evident
That It employ foul mean In this ex
ercise, the common people believe
That the private railroad la th klne--
pln of American plutocracy, few will
deny. Then would not . pre-emption.
tti rough government ownership, of the
railroad by th people for themsalvea.
cut eff plutocracy from Its main source
Would It not admit the common ceoi
pi Jntoihe rich pastures -heretofore,
and at presenttlKuJgcluslve privilege
of the rlchT . K
qultable Diffusion of Wealths
The distinction between equal divis
ion, snd equitable division ef wealth
la wide. .
That the two often- become confused
Is owing to a vlclous 'subterfuge em
ployed by "tainted" wealth In self-defense.
Reformers, whether La Follette
Republicans, or Bryan Democrats, de
mand equitable diffusion: that Is, a
share for each-of the total product,
equal to individual contribution toward
the creation of that product,
In this respect Socialists are wholly
misrepresented by plutocracy. Not one
of them, who ' understands th theory,
desires an equal division of the output
of wealth. .
None but laty lout dream of such
But no man of conscience can object
to the withdrawal of privilege from
plutocracy for th equal benefit of all.
For Thanksgiving Day It is the ambition of every good housekeeper to have tht home looking its very prettiest for Thanksgiving, and
it is often made, the occasion for the introduction of some new, furniture. ; If you are going to get anything new; this year now is the time
-.'"i ' " ' :' . -to do it. Come in, take your pick. ' . ' '' ; ''V".'-'' v '
This is the rage and
"we have, all the new.
shapes of rockers and
, chairs. The new de-
signs are unique. See;
.them on the first floor.
Navajo Blankets and Rugs
, These Navajos have just arrived they are the prettiest patterns
we ever saw. To make a room Jook rear inviting, throw one or
two in a room and jt, will .surprise you how muclrmore homelike
the house wijl look. , . ' . -
The prices are reasonable the blankets will last almost a lifetime,
You haven't seen the best part of our store until we show you
, these Navajos. '";':"V- ." ' .; :' ..'..;;. -J -
Whatever policy denle privilege to a
plutocracy, accord It to all.
- If Jt be true that th private rail
road constitutes an Important factor of
plutocracy, hen It withdrawal from
them through government
wmiiit ...A4ev4U tranafer lta benefits from them to
ml1 lIln BI"1 A"
that extent, a general anL equitable
diffusion of wealth.
' Among Important Incidental benefit
which may be expected to follow gov
ernment ownership, I name these;
1. Postal aavlnga banks.
" I. Safer Investment of trust' funda '
A strong objection to postal saving
under present condition, consists In a
limited field for their legitimate em
ployment The latest official statement at hand
place th Interest bearing portion of
the public debt at 1906,277.000.
This Is not aufflclant to absorb any
eonsidersble portion of money now on
I J fmWR
I I ! . . I I ""
deposit. '' even though all government
bonds were available for popular In
vestment; and the government should
not enter the loan market It should
not extend credit to Individual.
Introduction of postal saving SltHtT
coincident with government ownership
of i alh nails would largely arew-depesliaU
away from private banks. It would, of
course, render a large sum of money
available . to . th government-foe the
purchase of the railroads.
But government ownership would re
quire a greater sum than that available
from deposits. ,
IV would require a bond Issue prob
ably large enough to' equal withdrawal
of deposits' from private banks.
In thts way,' the Individual depositor
would not only get hi interest, but Jt
would escape all danger of bank fail
ure. . "Trlvete Oltlse avbajre -profit.
; lie would transfer th banker' profit
to the government' credit, and being
. This, make of range is
1 .built right it retains
an even degree x heat
takesTI ttle f uel and
little looking after to .
keep up the fire. Your ,
turkey, will be done to
: a nice bfpwn if roast-: .
ed in r a vNw ,Riv&l r
-Range. We will put i t r
V up for: you tomorrow 1
r.or aiiyrday-in time fot2l
" Thanksgiving turkey."
WE GIVE CREDIT
a part, of . the government, he would
participate In th gain.
- The banker upon his part would lose
much of hi deposit. But government
send. feuldjha .available to him. He
could go extensively Into national
est from th government npon his
bonds, and Interest from the-borrowlng
public trpon-nla, notes, baaed upon th
Without deposits to loan, vh would
have to purchase, bond with bl own
This wbutd demand an enormous In
crease of banking capital. -
To Illustrate, the leading banks of
Pendleton have each a total capital of
about 8260,000 which 1 partly -Invested
in real estate and fixtures.. And yet
each bank loan about 8800,000. They
now loan other people' money. But
take this other people' money away
from them.-and .they will have-to;ln?
Your Thanksgiving Turkey .ori a
if Lit , ".-eLv ; v v. iJ.
crease their capital to th full amount
of their loana. , . , . i t ',
- Tet" I am . not aura but what thl
would be a benefit even to them. 1
They co'trld- draw Interest twice. .. Say
I per cent from the government, and 6
par 'eeht "from berrower. ' They would!
be relieved front responsibility for other
people's money. , r
The Increase of banking capital upon
this hypothesis wcAild Insure a fine de
mand for government bonds. It would
not Introduce th government a' a
banking competitor through the postal
avlng bank. . Th government' own
debt would more than absorb deposit
held by It, and henc It would not com
pete upon the loan market . .
', Lastly, government bond being saf
est of all securities, government owner
ship, . would provide a large field for
the aafe Investment of trust., fund,
which-rnelude charitable and ' educa
tional endowment, accumulation -of
fraternal and old line life Insurance,
various sinking fund and Inheritance
of minors, or incapable heirs. ,
" HOLIDAY-RATES , ;
t i - . . , .
Aaaouneed to Ooeaa Beaohe.
To enable patron to visit ocean
beache durfng th Thanksgiving and
Christmas holiday, the O. R. K. Co.
will on November 38 and 29, December
24 and to, and January 1, sell round trip
tickets to all north beach polnta at a
rat of $2.80. . For further Information
ask at city ticket office. Third and
Washington treats, Portland, Oregon,
Professor Eaton Dancing School
Class .for ladle and gent Men day
nd Thursday evening at Anon halt
Fhen East 1104 ' , '
- 75 -
. -:- : '
I ' ' '. ,
A nice buffet sets off the dining room.t
It takes little money here to get one.'.
There are many designs to select
from and if you wanV credit you can'
have it, ' V;. 'i''.-'"'1
Of Japanese and Chinese curios,
consisting of old Bronze, Sil
ver, Cloisonne, new Brass, Sat
sums, fine decorated Tea Sets,
Lacquered - Ware, ' Ebony
Carved Furniture, embroidered
Screens, Oriental Rugs, etc'
Owing to the overcrowded con-:
dition of .our' small-store, we
are compelled to dispose of our
great stock at auction. The
publie i cordially invttttf to at
tend this sale. Unprecedented ,
bargains irt certain to be had.-
SALE AT 2:30 AND 7:30 P. M.
. . DAILY, ;. :;
' 287 MORRISON ST. . i
1 17 V
III II "imiMjr, WMniHfnl
KtATN'S RfiiABU ClASJirif 0 NAMtSof
OrfocfleWaihinaro" Farmrri.f ratf OTn.ji
potato t, tax K , jtodi , no nber m fesi itv. 1 1 1 .
-RURAL DIRCCTORY CQ- "
lltS n, . eosTtaw. esioe