-4t- - .. . 1 r ...... ; :.. ... :..:: 18 V THE OREGON SUNDAY JOURNAL. PORTLAND. SUNDAY MORNING, NOVEMBER 25. 1906. Government Ownership of Railroad Systems ' - a m . 1 -rrfv-v ... -..-J, '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, I.., F-conomle distribution of Indue distribution -of -eenv trie. - 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 inOfUtttetloB. r elf A distinction should be made between , corporate investments and prlvata onea. A - corporation , la merely a money making device. - 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 publlo Interference. 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 needed. Duplications of depots and terminals also result 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 ' tlon. 1 That It would do so Is proven 'by ab sence of duplications of public roads, public school buildings, etc. Mnanetal Zooaomy. 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, pages ,14-483.1 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: ., ISM. . .1401-1 . 1 (-4 t .10 1-8 ' 10.. 'tOg M 1-13 4-4 5i-: 1TSI- ISO . T 1-? Chi.. N. W. . ... Coll A Southern petrel lluK Denver & Rio Grande, 43 1-4 l7-i . Krie ; if-.-.-... Illinois Central ,.1 T- ...14 1-4 . Louis. ' Nash. . ... . MtsHi.Paclf lc New York Central., N. X., Ont. ft West-. 4 1 :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 try. ; 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 government ownership. 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 expenses. 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 duplicate service. 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 government ownership. 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. uovernment ownership 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 of upply7 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 a realisation. 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 ' Mission Furniture 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. 1 -avfe'sv,l4l '4MHew I 1 1 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 - The Complete Home Outfitters- 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 ownersnip, wmiiit ...A4ev4U tranafer lta benefits from them to ml1 lIln BI"1 A" that extent, a general anL equitable diffusion of wealth. Inciaental eaefltv ' 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 "" t-j 0 " YES, 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 1 Mm Cook Mew Rival Range llr J 3d . 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." Q WE GIVE CREDIT EMU, 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 laaflklng. est from th government npon his bonds, and Interest from the-borrowlng public trpon-nla, notes, baaed upon th bond, f Without deposits to loan, vh would have to purchase, bond with bl own money, ... 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. 9f 1 -v- 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 ' ' '. , J 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 Second and Morrison Streets Great 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, ;. :; AndrewKair&Co. ' 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 Auctionjale )