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1918

THE OUTLOOK

343

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GOVERNMENT OWNERSHIP OF RAILROADS

BY STEPHEN BELL

(Reprinted from Commerce and Finance) HERE are things which are mine, of the Postal Telegraph, the Commercial, things which are thine, and things and the Commercial Pacific cable comwhich are ours,” said the late John

panies, has sent to each United States S. Crosby. There is no disposition Senator a letter in which he advocates a anywhere to dispute the principle, but the plan for private ownership under Governapplication of it is combated on every hand. ment control. He quotes approvingly a

No serious attempt has been made to recent utterance of Mr. Sisson, Vice-Presiclassify businesses which should be private dent of the Guaranty Trust Company, who (mine and thine) and those which should said in part: "It is very certain that the be public (ours). If there was no money old days of enforced competition, anti-trust in it," nobody engaged in a given service laws, anti-pooling laws, conflicting State or business until public sentiment forced regulation, wasteful competition, duplicathe Government to attend to it. So it comes tion of service, will not be permitted by a that the maintenance of public highways, public alive to its own interests.” public schools, police and fire department, The “ Railway Age,” long the champion etc., are public businesses. But if there was of the old system, has seen a light, too, for money, or the promise of money, in them, it says: "There clearly is a growing belief private enterprise was eager to exploit among both railway men and public men them, with the result that railroading, the that it is undesirable that either the old telegraph and telephone business, supply- system of regulation or the old system of ing gas, water, light, etc., are in private management shall be restored.” It suggests hands-are considered by their possessors

the elimination of unnecessary competition, as private business.

reorganization along regional lines, private It has occurred to a few minds that there ownership with Government guarantees of is a better, truer, more scientific classifica minimum net returns, and Government tion of public and private business and control with pooling of facilities in so far as service than the possible profits that may such pooling will promote efficiency. be made from them. If, they say, a given Brother Hearst is out against any combusiness requires the exercise of no public promise arrangement and demands Govright, the exclusive use of no public prop ernment ownership and nothing else. That erty, the granting of no privilege not open truly good and consistent soul quotes himto all

, it is a private business ; but if it does self for years past as having always favored require any of these things, which really it. There be friends of the proposition who constitute a quasi-public partnership, then regret that he favors it, and manifest a disit is a public business.

position to apologize for the fact, fearing The railroad business seems to fall natu his advocacy may give it a black eye—that rally into this class. It requires for its ex he even may

have been at least partially istence probably the most important of responsible for the unexpected action of the public rights—the right of eminent domain, Senate in setting a time limit of eighteen the power to condemn and take the prop months for Government operation. erty of private parties for public use. It is The “ Manufacturer's Record”.contribimpossible to imagine the acquisition of utes some valuable hindsight to the discusthese interminable strips of land for the sion, placing on President Wilson's surbuilding of a railroad without this power. render to the Railroad Brotherhoods all And the granting of the power has been the blaine for the railroad breakdown which made on the only defensible ground—that led to their taking over by the Governit was for public use."

ment. There is good authority for the The public acquisition of these “private” statement that "the children of darkness businesses will be attended with much are wiser in their generation than the chiltrouble, labor, friction. Their present owners dren of light,” meaning that they usually will find it difficult to see the matter except know better what they want and how to get through their “ vested right” glasses. The it. The editor would do well to read the owners of our railroads naturally feel just remarks of Theodore N. Vail, Chairman of now that an unfair advantage is likely to the League for National Unity, on nagging be taken of their patriotic willingness to the Administration. turn their property over to the Govern Government ownership may meet with ment for the prosecution of the war, and more opposition from those who have conhence are disposed to cast an anchor to trolled our railroads than from those who windward by limiting the Government's own them. The holders of large-salaried operation of their property to the time positions feel their positions slipping from necessary to prosecute the war to a victori-. beneath them. Perhaps it will be easier to ous finish and a decent period after for

secure men at more moderate salaries to the proper “unscrambling of the omelet. manage railroads than it was to secure men Some of them may be inclined to do more

to manage them, secure business, and place than this even to do things calculated to

the stock and bonds of the roads in an addiscredit Government ownership. We are

vantageous position for investment and fully warranted in saying that “ sabotage speculation. Possibly the Director of Railis not confined to those who receive their roads had some such thought in mind when pay in an envelope.” The history of the he dismissed a number of “ unnecessary attempts of cities which have acquired agents and attorneys recently. street railroads, ferries, gas and electric One of our jokesmiths has defined a lighting business, etc., afford too many

standpatter as one who cannot be started, illustrations of overloading them with un

and a progressive as one who cannot be necessary employees, purchasing supplies stopped after he starts. The Anarchistic at extravagant prices, etc.

school of political philosophy, observing Suggestions are not lacking for a com that most of our economic ills arise from promise between Government ownership abuses of government, would abolish goyand the old system, a return to which is

ernment; to them the rights of the individseen even by the most conservative to be ual are everything, those of the collectivity

For the information and assist

ance of those required to make returns and to pay taxes we have published, for free distribution, the following comprehensive booklets:

Federal Income Tax Law Contains the full text of the law and a summary of the_most important regulations of the Treasury Department affecting individuals, fiduciaries and partnerships.

Excess Profits Tax Law The War Excess Profits Tax Regu. lations (No. 41) and the full text of the Law.

War Tax Law This Act covers the War Excess Profits Tax, the War Income Tax, Amendments to the Income Tax Law of September 8, 1916, and miscellaneous taxes.

We shall-issue in the near future, a synopsis of the Federal Income Tax Law and regulations affecting non-resident aliens, including individuals, partnerships, fiduciaries and corporations. Shall we send you a copy of this booklet when issued ?

Guaranty Trust Company

of New York

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Resources more than $600,000,000

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27 February

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It was handed me once by a connoisseur, who told me where to get it. Later I had it made specially for me-made as a Panatela, the size of this picture, for a short, sweet smoke. It is made solely from Havana leaf. So are many others. But I call this the finest flavored leaf that ever came from Cuba.

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am going to let some of them
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MABANA
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Government Ownership of Railroads (Continued) market price of the issue, and makes it less easy to
that these same economic ills arise from

sell future issues at the same rate.
the abuse of individual rights, would merge

When the second Liberty Loan was all rights in the collectivity, making the offered to the public, we pointed out that Government supreme in all things and the the purchase of Government bonds out of individual nothing—or near it.

current savings offered an excellent

opporLike sabotage, Anarchism and Socialism tunity for helping the Government finance are not confined to the lowly, and the fun the war and at the same time provide for damental ideas of these schools are held by one's future capital needs. We suggested, many who hotly resent the imputation. for example, that a man who was saving We must, if this world is ever to become money with which to build a home after truly fit to bring children into it, stead the war.could apply these savings now to fastly set our faces to eradicate two kinds the purchase of Liberty Bonds, and then, of evils—the abuses of government and after the war, use the bonds to finance the the abuses of individualism. We must home building. But we emphasized the learn what John S. Crosby would have fact that these savings must be put at the taught us—“ There are things which are service of the Government during the war mine, things which are thine, and things and not withdrawn for other

purposes

until which are ours.”

after the Government need was over. With the heart to do justice to all, let us Mr. McAdoo has done well to bring this apply this principle to the railroads of the home to the public, and especially to merNation.

chants and others who have evidently failed

to realize the purpose of the war loans. KEEP YOUR LIBERTY BONDS

Over and over again it must be impressed

upon the people of this country that the one In a recent issue of The Outlook we

thing the Government needs to-day for the pointed out that the use of Liberty Bonds

successful prosecution of the war is a large during the war for the purchase of securi

part of their current savings. It does the ties carrying a higher rate of interest ought Government no good to invest one's sarnot to be encouraged by investment houses. ings in Liberty Bonds and then turn around Another phase of this use of Government and withdraw the savings by the sale of the bonds as currency is brought to public at

bonds. This simply means that the burden tention by the appeal of the Secretary of of saving for the Government is transferred the Treasury to merchants not to attempt to from one citizen to another. Liberty Bonds increase their sales by offering to accept that have been used as money for the purLiberty Bonds in payment for goods. Mr. chase of merchandise come back into the McAdoo's statement, made immediately market at once because the merchants sell after Christmas, was as follows:

them to get the funds. The holder of
While I have no doubt that these merchants are Liberty Bonds who needs some or all of the
actuated by patriotic motives, I am sure that they money he has invested in them in order to
have failed to consider the effect which the accept-

meet unexpected living expenses, of course,
ance of their offers would have upon the situation.
We are making the strongest effort to have these

is perfectly, justified in putting himself in
Government bonds purchased for permanent invest-

funds in this way. But he is not helping the ment by the people at large, to be paid for out of

Government if he sells Liberty Bonds to
the past or future savings of those who buy them. purchase things that he can do without.
Purchases thus made not only result in providing Since the second Liberty Loan was
funds for the uses of the Government, but they also floated the bonds have declined from par to
effect a conservation of labor and material.

95. This decline is due to selling in excess
When the bonds are exchanged for merchandise, of the market's capacity to buy them. A
it defeats the primary object of their sale-it dis-
courages thrift and increases expenditures, thus

considerable part of this decline in Liberty
depriving the Government of labor and material

Bonds, which has been a matter of considneeded for war purposes. In addition to this, such

erable comment, is undoubtedly due to the bonds when taken in exchange for merchandise

liquidation by merchants and others who must, in most cases, be immediately sold in the have taken them in payment for their open market. This naturally tends to depress the

con

and by

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TOI

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198 Lockwood Building Buffalo, N. Y.

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During the past year the Financial Editor of The Outlook has helped hundreds
Outlook readers to solve intelligently their particular investment problems. Perhaps
you are contemplating a shifting of your present holdings or have fresh funds to
invest. In either case we shall be glad to give you specific information on any securi-
ties in which you may be interested. This service is entirely free to Outlook readers.
THE OUTLOOK FINANCIAL DEPARTMENT, The Outlook Company, 381 Fourth Ave., N. Y.

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Sieepiessness

WHAT IS RAGTIME? In The Outlook of November 7 there appeared an editorial called “Primitive Folk Songs of Broadway ” which contained what might be considered a just plea for a square deal to ragtime music.

As a pianist and teacher it has been my privilege to get in touch with the musical

well and weigh what you should. I can help you. I know I hearts of a great many classes of people

can. Not one drop of medicine. (Americans en masse), and out of my ex

My way is the natural way-a scientific system, combining exercise,

bath, diet, sleep and deep breathing. perience I think I have gained a fair

In a few short weeks, with my help, you will surprise your family knowledge of what the real American and friends. wants in music. No one is better situated 80,000 Women Are My Friends to discover the actual musical inclinations I have won their friendship and respect because I have made them

well, taught them how to keep well, reduced and increased their of America than the American music weight, given them perfect figures all in the privacy of their rooms

and I have kept their confidence. May I help you ? teacher ; I mean the teacher of average Physicians approve my work;

their wives and daughters are my attainment, the one who deals with the pupils. Medical magazines advertise my work.

These facts are cited modestly-with only a desire to prove that I average American. Alas! no one sees more can and will do all I promise. Rememberclearly or feels more forcibly the musical You Can Be So Well! You Can Weigh What You Should ! demands of the people than those teachers

It is easy to be well, to be free from nagging, ailments. Even the

most chronic afflictions, in who, like myself, have spent so much time

nine cases out of ten, are

If you have any of the follow vastly benefited by my help. and energy in trying to instill in them

ing derangements, mark an May I help you ? something they do not seem to want.

X after it and send to me :

I can build you up or re

duce you. You thoroughly

Excess Flesh in any Lack of Reserve Just what ragtime is and why it lives is

enjoy my simple directions

and you feel so satisfied with not easily told. It covers entirely that type

Irritability

yourself. Constipation

Write to me! Ask for my of music referred to and cleverly desig

Indigestion Booklet-sent you without

charge. Let me tell you all nated by The Outlook as “ Broadway folk

about my wonderful experisongs.” But the common conception of it

stand the great work I am is obscure and confused. A great many

doing for womankind; and

how I can help you. people, including (apparently) some of its

Susanna Cocroft, Dept. 8, 624 Michigan Ave., Chicago composers, seem to think that it is merely another word for syncopation. That this is by no means true we shall see presently. and said she would sing a beautiful French nized him as one of the German peace

del Ragtime seems to be going through a love song

instead.

egates with whom I happened to be on course of evolution. Its

scope is becoming The boy knew what he liked and called speaking terms. I inquired courteously broader. Year after year an increasing for it. No doubt there were a great many

after his health. variety of musical style is conveniently

more present who would have been delighted “ Well enough in the body, friend Sinfalling under this head. And it is gaining with the captivating rhythm of this now bad,” he said, “ but my mind, alas, is givfavor. popular song.

ing way. One more session with these Perhaps the most vigorous objection # For Me and My Gal" is typically rag

Bolsheviki and I am done for." voiced against ragtime comes from those time, yet it is practically free from synco “And yet they seem such pleasant peowho, by their loftier instincts, detest its

pation—to be exact, there are just three ple,” I said. favorite haunts, namely, popular dance measures of syncopated melody, those near “ Pleasant, yes. But they are underminhalls, places of ill repute, cabarets, etc. the close of the chorus. The most striking ing my mental constitution,” he said, pressAnother serious objection is its frequent example of all ragtime music came out a

ing his hands wearily to his throbbing adaptation in vulgar and suggestive songs. few years ago in Irving Berlin's song temples. "I was born in Prussia, friend In these, however, there is no just cause “ Alexander's Ragtime Band.” It may be Sinbad. For the space of eleven years

I for its denunciation. Being sorely neglected interesting to note that this song, was re

used to leave home for school at 8:47 and among cultured folks, the outcast finds ceived in London and Paris with the same return at 3:53, going to bed at7:30. Then refuge among the rough and worldly,

rough and worldly, enthusiasm in New York. Over a mill. in high school my hours were from 9:15 to where it is, in truth, much abused. ion copies were sold in Europe.

5:25. At the university I regularly took Strictly speaking, I believe there is but What made this song so popular? It was twenty-five minutes for lunch and threeone well-founded theoretical objection to not syncopation, for there is no syncopa quarters of an hour for exercise. My anragtime, and that is the occasional excess

tion at all in the chorus, which is the most nual expenditures were 2,545 marks and ive use of its peculiar kind of syncopation. pleasing part of the song.

50 pfennigs, as my note-books balanced at Syncopation, by its stimulating effect, is

Ragtime songs like the following, “ Are the end of the year would show. And thus pleasant when administered in well-regu You from Dixie ?” “ Back Home in Ten it has been throughout my career. lated form. It is spice. But when taken to nessee,” “I Want to Go Back to Michi “ But now the Bolshevik delegates,” he excess it overstimulates ; it irritates. That

gan,” “Yaaka Hula Hickey Dula,” etc., went on," set a meeting for ten o clock and which at first is dazzling in due time be owe their success to a certain peculiar en show up at 2:30. They speak two or three comes tiresome. The listener will soon

chanting rhythm, but not to syncopation. at a time. When we say to them that we surfeit on syncopation. Admiration turns

HAROLD HUBBS. ought to dictate terms because we are the to disgust. It is gratifying to observe, how Gleason, West Virginia.

victors, they say, 'Oh, no, you have beaten ever, that this one-time doubtful feature is

us, but we are the victors. When we ask gradually losing favor and promises to be

them what they expect to do in case hostileventually overcome. It is also a fact of TOPSYTURVY STATES. ities are resumed,

they say they will comsignificance that these over-syncopated

MANSHIP songs are by no means the most

pel us to capture Petrograd. When we ask

how about the army, they reply cheerfully cessful. Perhaps the best way to define ragtime

The extraordinary reasoning of the Bolsh- that most of the army has run away and eviki leaders in Petrograd, who disband

the rest is starving, and that consequently
and prove that it and syncopation are not
necessarily analogous will be to go to the

their armies without making a peace treaty, they must insist on our accepting their
recalls a clever bit of burlesque contained

terms without changing a dot. After a
bottom of things and summon up some
actual illustrations. In other words, deal

in one of Mr. Simeon Strunsky's

“ Post

couple of sessions, friend Sinbad, our delewith it in the concrete.

Impressions” in the New York ®“ Evening gates from the Central Powers are on the
Post.” Mr. Strunsky's modern Sinbad was

edge of nervous prostration. The head of
A short time ago Madame Schumann-
(in imagination) in Brest-Litovsk, where

our mission cannot write home because he Heink sang for the soldiers at Camp Meade, the Maryland. Immediately after the applause Germany are going on. He

peace pourparlers between Russia and has forgotten his wife's name, and more

than once he has been overheard calling which greeted her first appearance on the

says:

himself up on the telephone. I suspect a stage one of the soldiers called out: “Sing I was walking one night in the outskirts nefarious plot, Sinbad. The Bolsheviki are *For Me and My Gal.' ” This was merely of Brest-Litovsk when I noticed a familiar planning to drive the leading statesmen of one of the comedies of camp life, and no figure leaning against the stone coping of the Central Powers into a lunatic asylum, doubt amused the great singer as much as the bridge promenade and gazing sadly and then they can work their will upon any one else. She declined with a smile, into the waters of the River Bug. I recog

poor Germany."

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BY THE WAY
“ The next morning, as treacherous and
as hypocritical as ever, a large company of
Germans, which included all the principal
and senior men, came to his quarters, with
a double object—to clear themselves (so
they alleged) for engaging in a battle the
day before contrary to the agreement and
to their own request therein, and also by
deceit to get what they could in respect of

the truce. This is not an extract from an
No Porcelain to Break

account of current happenings in Russia in

respect to the making of peace between Specially prepared mica insula

that country. and Germany. It is from tion passes rigid inspection. It

Cæsar's history of his dealings with certain is oil proof, leak proof, fire

German tribes in the year 55 B.C. Reply-
proof, and trouble proof.

ing to the spokesman of these Germans
(who had crossed the Rhine to invade

Gaul) the narrative reads : “To this Cæsar
The aristocrat of spark plugs

replied as seemed good ; but the conclusion

of his speech was as follows: He could You will know it by its hand

have no friendship with them if they re-
some exterior. Made so to pre-

mained in Gaul.” These extracts from a
vent rusting into cylinder head.
Electrodes are of steel with

famous book are commended to the atten-
nickel tipped firing points—self

tion of the powers that be. cleaning. It costs more to make,

A subscriber writes, apropos of a recent but pays in the long run. For

paragraph in this department, that an
the exacting requirements of the

Tunintentionally irreverent prayer" ut-
high speed, high compression
engine, where endurance and re-

tered in perfect solemnity by an old-time
liability count, this quality plug

hill-town parson was as follows: “O Lord, has proven itself worthy of the

Thou art like a chipping-squirrel in the title it bears.

wall—Thou canst see us, but we can't see

Thee!”
Of all dealers $1.25.

In 1775, says C. C. Gill in “Naval
OAKES & DOW COMPANY

Power in the War," David Bushnell, of
16 Chardon Street, BOSTON, MASS.

Connecticut, built the diving boat "known
as the “ American Turtle.” Its design was
astonishingly modern in many ways. “It
was made of iron plates, propelled by a
screw,

and guided by a compass made visi-
ble by phosphorus. The torpedo was car-
ried outside. ... These attempts with the
submarine and the torpedo, asthough they
did very little actual harm, caused so much

alarm ... that it is perfectly fair to say TANDARD HYMN

that the submarine and torpedo had a tacti'ERTIFIED PUBLIC

cal value in the Revolutionary War." ACCOUNTANT Just Out. A New Song Book. Sample.copy will

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a resident of S into business for yourself ; demand for expert

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to gunsmith. He'is, the Sun” states, the

originator of the machine gun used by the
United States forces during the Spanish

War and the Boxer uprising. A bullet from
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a Browning automatic pistol, it is said,
CHANCE When you notify The Outlook killed the Austrian Archduke whose death
Do you want to learn of

precipitated the war.
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on ropes or performing other duties that Send 15c for handsome Pocket Outfit and full instructions.

The Ray Co. GOODELL & COMPANY, Room 241, Duratex Bldg., NEW YORK

Room 2180 require united action. "To hear Mr. King

220 W. 42 St. The largest business of its kind in the world,

lead his sailor friends in Shenandoah, N. Y. City

Bound for the Rio Grande,'

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By the Way (Continued) Man Down,'” says the journal quoted, “ is to understand the psychologic punch of the well-sung chantey.

A Nevada subscriber bewails the loss to the tables of the country of 1,500 jack rabbits which he saw just after they had been destroyed by poison. This huge pile of good food, he says, might have helped out on the meatless day or the day after. This systematic poisoning of rabbits by the Biological Survey should, he says, be abandoned in favor of some less wasteful method of ridding the country of these pests, which furnish really good eating. But he suggests no alternative method of killing them by wholesale. Perhaps some other reader can?

The seamen who come to New York left the unprecedented sum of $533,459 for safekeeping with the Seamen's Church Institute last year. They could afford to do this because their wages are now higher than ever before known. The men who were drawing $30 a month before the war are now getting $60, and in addition they receive a fifty per cent bonus for hazardous trips through the submarine-infested waters, bringing their earnings up to $90 a month.

An odd reminder of the days when phrenology was popular as a means of 6 reading character," with a sly dig at the tendency of its professors to give complimentary explanations of the bumps," is found in a letter from Elizabeth Barrett Browning advertised for sale in a London bookseller's catalogue. It reads in part: “Do you believe in phrenology? Did you ever consult a phrenological oracle? and did it answer, My son, thou art invincible'?"

A theater devoted to magical mysteries and the conjuring art is planned for New York City, under the management of Houdini, a past-master of this kind of entertainment. " From the minute one enters the portals," an announcement

says, everything will smack of the black arts. The hand which reaches out for the money at the ticket office will have no apparent connection with any human form, and a voice from nowhere will direct the audience to their seats. Music will be furnished by invisible chimes."

“ Th Student Council showed a good spirit last week,” says the

“ Harvard Alumni Bulletin, "S" when it put itself on record in favor of opening and closing the exercises of the University one hour earlier each day for the sake of saving the fuel used for lighting purposes.” This news item may serve as a reminder that Congress has yet to pass on the Daylight Saving Bill.

“A Yankee in the Trenches," Corporal Holmes, after being disabled during an

“ Back in hospital I was found to be suffering from shell shock. Also my

heart was pushed out of place. I was sore all over, and several ribs were pulled around so that it was like a knifethrust at every breath. My nerves were shattered. I jumped a foot at the slightest noise. I asked the M. O. [doctor} if I would get Blighty [be sent home), and he said he didn't think so, not directly. I told him if this jamming wasn't going to get me Blighty, I wanted to go back to duty and get a real one. He laughed and tagged me for a beach resort on the northern coast of France. ... I think that glorious week at the beach made the hardships of the front almost worth while.” At the end of the week Corporal Holmes was sent back to his battalion to get “a real one.”

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