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The Commoner.
VOLUME 7, NUMBER IS
1 tho preservation of our tltml form of government
us necessary to the perpetuity of the republic.
The plan according to which tho fcdorAl gov
ernment Is to own only tho necessary trunk lines
and tho several states tho remainder of the roads
Is consistent with our form of government and In
stead of loading to centralization promises to build
up tho states and thus offer a sure bulwark agaiiidt
centralization. I havo been surprised Chat this
plan should bo opposed on tho ground that It would
load to centralization when It was tho fear of this
that led mo to present the plan.
Whilo ilio plan was proposed before I know of
its having been tried In other countries, I havo
since learned that It has been successfully em
ployed In other countries, notably In Germauy,
where nearly all the railroads are owned by the
several slates.
When In Germany last summer, I was told by a
mombor of tho relchstag that as a result of this
system tho credit and inilucnco of the several
slates had boon greatly strengthened.
That tho dual plan Is practicable must bo evi
dent to any one who has seen the manner In
which tho small states of Europe handle their in
ternational tralllc.
SYSTEM SHOULD BE INAUGURATED GRAD
UALLY ITaving sot forth tho plan and my reasons for
sotting It forth at tho time I did, I will now an
swer your questions.
It is not necessary that there should be many
trunk linos. Some havo assumed that every lino
which runs through two or moro states is a trunk
lino, but this does liot necessarily follow. Only
enough trunk lines aro necessary to give each
Btato an outlet for tho merchandise shipped over
the state lines. Whilo it is not likely that ad
Joining states would havo any difficulty In making
joint traffic arrnngoments still tho operation of a
few federal trunk lines would glvo to each stato
an lndepondont position.
As to the acquiring of lines, I suppose that all
would agreo that tho system should be inaugurated
gradually, so that tho government could profit by
experience. It is probable that a commencement
would bo made with one trans-continental Hue,
with a possible cross line. A line from the Atlantic
to tho raclflc crossed by a line from tho Lakes to
tho Gulf would do more to demonstrate the wis
dom or the folly of government ownership than all
tho arguments that could bo made for or against
tJio system. If Uio government is Incompetent to
attend to such matters and too extravagant In pub
lic work, tlic private roads need not bo afraid of
competition. In fact, thoy ought to welcome tho
experiment. If, on tho other hand, tho government
shows that it can reduce rates, improve the ser
vice, accord better treatment to employes and still
earn a fair profit on tho investment, who can
justly complain If the government road squeezes
water out of stocks, reduces private management
to an honest basis and compels the roads to glvo
better rates to patrons and better terms to em
ployes? GOVERNMENT CAN BUY OR BUILD
Those experimental lines can be bought or
fcullt, whichever the government officials think
best. I have not entered upon the details of the
plan or attempted to decide upon what basis the
government should buy. If it announced its pur
pose to buy a lino there would probably be a
number offered and it could have its choice. Tho
government might buy a controlling interest in a
line that is tho way the railroad magnates do.
If It built a new line, tho success of the new lino
would largely determine tho value of ether lines
offered for sale to tho natton or to tho various
states. Our commerce Is increasing so rapidly
that a new line would not materially lessen tho
business of the old lines; there is oven now need
for moro transcontinental lines and the Chicago,
Milwaukee & St. Paul is building through to the
coast to meet this demand. The transcontinental
roads have not been able to carry the freight of
fered to them and the Union Pacific is earning an
income on considerably more than the value of tho
road.
If it was thought best tho government could
do as Prance did: authorize lines, guaranteeing
fair dividends and contributions to a sinking fund
which at the end of a term of years would Kive
the government the title to the roads.
' If any one doubts the finaucial success of a
government trunk Hue, he must overlook the fact
that the mails at tho present rates would at once
furnish quite an item of business.
It is not fair to compare government roads in
other countries with private roads in this country
The public roads of Europe aro equal to the ovl
vate roads of Europe-that is the only fair com.
parison. Our munichml ninnfe V tii iLr""
as good as the private plants nd furnish ser
vice at a lower rate, which is evidence that the
public ownership of roads Is feasible.
WHAT THE STATES COULD DO
Being nssurcd of an outlet for the traffic of
their roads, the states could proceed to acquire
local roads slowly or rapidly as they wished. If
tho people of any state preferred to leave the local
lines In private hands thoy could do so; if thoy
desired to build new roads, thoy could build them;'
if thoy desired to buy existing roads upon such
terms as seemed best, they could do that
Tho dual plan suits itself to tho views, of the
people in each slate and to conditions to be met
In tho several localities. If trunk lines were so
operated as to permit private roads to use them
upon equitable terms, it would be of still greater
advantage. At present the small lines are forced
into consolidation in order to secure an outlet for
their traffic; as soon as these private lines tapped
a government line they would bo independent
Objection has been mad.e to government owner
ship on tho ground that it would prevent the
states from exercising police power over the opera
tion of the roads. This objection mierlit bo miulf
against the federal ownership of all the roads but
It does not lie against the dual plan. For, first, if
tho states did not choose" to own the local lines,
thoy could exercise the snme control over them
that they do today. Second, if they desired to
own tho local lines, their control would be even
moro complete than it is today. Third, an act of
congress could provide for the operation of trunk
lines in harmony with the police laws of the vari
ous states, and fourth, the states could be permit
ted to run local trains over the trunk lines.
NO SUDDEN CHANGE CONTEMPLATED
You will see from tho above that no sudden
change is contemplated. On tho contrary, the
change, if adopted, must necessarily be slow. It
ought not to be treason in a country like ours to
suggest that the people themselves are the ones to
determine what should be done, and the plan
which I have proposed provides for the inaugura
tion of the change with the least possible dis
turbance. It is needless to say that no confiscation is
proposed. There is no disposition under either
strict regulation or. government ownership; to do
injustice to Investors in railroad securities, and
the courts would prevent injustice even If it were
attempted. As a matter of fact, tho people havo
been more ready to do justice to the railroads. thrni
the railroad managers have been to do justice to
tho people.
If tho railroad managers had- respected the
rights of the public, there would have been no
talk of government ownership, but instead of that
they have used the power given them through their
ownership of lines, to juggle the price of stack, to
discriminate against shippers and cities and to
collect from the helpless public all that the traffic
would bear. They have combined to destroy com
petition and then divided the spoils.
When regulation has been attempted they have
terrorized congress and state legislatures and have
cbrrupted officials. If the sentiment has turned
against private ownership, the railroad managers
..have only themselves to blame.
POPULAR FAITH IN REGULATION
At this time a majority of tho people still seem
to have faith in regulation, and the first thing
necessary is to ascertain the present value of the
railroads and then prevent any more watoring of
stock. I shall assist as far as I am able to test
regulation under as favorable conditions as can
be created, but having reached the conclusion that,
in the end, regulation will be found ineffective, I
have stated the conclusion.
As-1 was slow In reaching this conclusion my
self, I can be patient with those who honestly fear
government ownership. In the meantime, I am
anxious that those who become convinced of the
necessity of government ownership shall consider
tho plan which reduces centralization to a mini
mum and adds to tho influence and vigor of the
state. Very truly yours, w. J. BRYAN.
Lincoln, Neb., April C.
xxx
MAY BE TOO RADICAL
Tho New York World is devoting considerable
space to double leaded editorials entitled, uMako
Harrlman resign." After "a long and heated cam
paign," the World expresses surprise that its ap
peals have had no effect upon tho Union Pacific
directors. Maybe tho explanation is that Mr
Harrlman knows too much to be shelved.
The controversy between Harrlman and Mr
Roosevelt's friends has grown exceedingly bitter
but with all' their bitterness, it-does not seem to
have occurred to the Roosevelt forces that an ef
fective way of disciplining Mr. Harrlman would
be his arrest and prosecution on, the Alton deal.
- Wo have been told that between the Roosevelt
forces and the Harrlman forces, it is "war to the
knife. But while Mr. Harrlman's feelings havo
probably been injured, and his sense of gratitude
has probably been shocked, he does not even bear
a scratch, as a result of the "terrible warfare"
made upon him.
"Prosecute Harrlman for the Alton deal," may
sound just as serious to the Roosevelt. forces -as-mako
Harrlman resign," sounds to Harrlman's
fellow managers of the Union Pacific. .".. ;. .
OOO . V
. "IT MAY BE TREASON BUT-"' .. .'
The New York Evening Postprides itself unnn
conservatism; but if the editor of the OPost I X
careful he will read himself out of the lists
- i.r1,"11, rQctlut lssue tU0 pst had an interesting
? Z 'tied "The New Gold and the Rise off
Prices." The Post points but that all statistics
agree that from 1872 to 1897 there was a steadv
downward movement by which the general -level
Of prices was reduced not less than 80 or 85 S
cent. Then the Pnsf- Riinwc , . cwr lc
eourse of American prTces'had been" steady 2
- ward ranglrfg from 90.4 in 189G to 115 9 in lOOS
In other countries as well the price rise haq hopn
noticeable The Post attributes Se 'wW-wlS
rise of prices" to the recent phenomenal incrlase
of the world's gold output. Since 1883 the annua!
to WWwS.OOof014 advanced om $95,392,000
But the "world-wide rise in prices" is some
what different from the "America? S in prlcS?
and the Interesting story relating to this differ-'
once is told by the Post in this way
"But if, fundamentally, we attribute the world
wide change in prices to the remarkable increase
in the world's production of gold, it by no means '
follow that this force has operated in vacuo with
out the help of other forces. - Indeed, the index
numbers for England and the United States show
that THE RISE OF PRICES IN THE FORMER
COUNTRY HAS BEEN LITTLE MORE THAN
HALF AS GREAT AS IN THE JITTER, so that
one is led to suspect that SOME CAUSE TTAi
OPERATED TO NEUTRALIZE TIEFFEGTS
OF THE NEW GOLD IN ENGLAND? OR TO IN
TENSIFY THEM IN . THE UNITED 3TATES
Between: 1890 and 1905, Mr. Sauerbeck iin
number advanced from 01 to 72, or about 18 nqr
cent; while during the same period the index
number of our own bureau of labor advanced
from 90.4 to 115.9, or nearly 28 per cent. Clearly
with us the rise of prices has proceeded at a pace
NEARLY 50 PER CENT GREATER than that
indicated for England.
"It may be treason to say it, but the fact seems
to be that IN THE ENGLISH MARKET, WHICH
IS OPEN TO THE COMPETITION OF THE
WORLD, PRICES CANNOT ADVANCE SO RAP
IDLY AS IN OUR, OWN FAVORED LAND OF
TARIFFS AND TRUSTS. Our present method
of manufacturing prosperity is to have the fed
eral government, through the Dingley tariff, bind
the consumer hand and foot, and then invite the
Trusts to rifle the victim's pockets, not overlook
ing his scarf pin and other valuables. Meanwhile
our president extols the square deal and proves
to you that there is no possible connection between
the tariff and the Trusts. The result is pros
perityfor the Trusts and the campaign commit
teebut the process is undeniably expensive
"How long the gold output is likely to go on
increasing is as difficult to answer as the further
query, HOW LONG ARE THE TRUSTS TO EN
JOY THEIR PRESENT LICENSE TO PICK:
( OUR POCKETS?"
Let every Commoner reader show this Post
editorial to his republican neighbor.
OOOO
CLEVELAND ON INSURANCE-
Former President Cleveland is just now en
gaged in a work which is not likely to add to
. either his laurels or his reputation. As counsel
for the Life Insurance presidents he has submitted
a brief in relation to the power of states to take
salaries paid to Life Insurance officials into con
sideratlon in laws regulating insurance. As this
brief is intended for use in opposing state legisla
tion it puis the ex-president in a class with ttf lob-bylsts-a
rather undignified position for one of his
standing. But as he is the custodian of his own
reputation ess exception can be taken to his em
p oyment than to the legal opinion which he has
given. He denies the right of the state to mit
limit oiusalaries paid tofficials by compPani
doing business within its borders1. The obTectla
which he raises goes to the verv'rnnf nf XS '
tton of control, If the states dre poterYesslo
tect policy holders from lossesffi&tl
extravagant salaries, of what value Is state
I
X- 1
'..' " V't T -siiki.