, 1873-06-19
THE "PRO RATA" DISCUSSION m ENG
LAND,

LAND.
Tho people Of Great Britain arc as seriously
harasBod with the porple1itics Of the railroad
problem ga tho people OF this country. Tho
railroad corporations thore do not expect to earn
Is largo percentage on the capital invested as
tho American railroad companies. Thoy arc
well Satisfied with earnings TINT will amount to
por cent On tho capital stock, and por cont
di7idands place tho stock at par. But tho i'll
vcstmonts aro much larger. Thoro nro 10000
miles OF railroad in England, representing cost
Of .e550, 10000 sterling, or about a170,o0o
mile. 4 largo ostinnto On tho actual average
cost OF railroads In this country Is $4,000
mile Tho groator cost In England is ropresent-
cd by tho greater difficulties In engineering, tho
long and more costly process Of securing fran-
cllses, tho larger expense OF purchasing tho
right Of why. mud the superior character Of tie
work that is dono. Tho difference in the capital
invested moro than balances tho difference be-
twccn tho average rates Of interest Of England
and America, 90 that tho railroad rates exceed
even those OF this country. Tho passenger rstos
arc contH milo, about doub1e tho average Of
tho Continental countries, and tho freight tariff
is higher in tho eamo proportion Tho people
hive jumped ut the conclusion that tho railroads
aro all practising oztortion, which Is probably
true Of d portion Of them, and the subject has
regularly come before tho Board ot Trade md
the British Parliament for solno time past. Tho
latest discussion hos boon as to tho
policy Of tho Government purchasing tho On
tire railroad syatom; but even those who
favor this e1tromo measure advocate d
payment Of full capitalization Of per cent
earnings for twenty yoara. With an allowance for
increase OF value within the next twonty years.
The main argument used il that tho, Govern
ment can borrow tho money at lower rate Of
interest than tho railroads pay, and, therefore,
can put down tho rates to tho pooplo,-an argyll
mont, by tho way, that would not apply at all in
this country II our Government should undor-
take to 60 into the railroad busineaB.
One Of tho advantages claimed for tho Coy
ornment assumption OF tho railroads Of Great
Britain is tho equalization Of rates all over tho
country, which would necessarily be adopted.
This has led to discussion Of uniform rates,
and tho evidence ia MI opposed to tho prac-
ticability and juBtice Of tho theory thai
thero ahould DO law requiring oil
railroads to charge precisely tho Ramo sum poi
ton per milo from everywhere to everywhere
Tho ovidonco resulted, Of stated in tho last NUM-
bor Of tho Quarterly Rcuielo, In establishing the
fact that producer and consumer alike would
suner,by such policy; that rich diatrlcts on the
| coast would DO gorgoa with trade, while thu
| towns. loBs adyautagooualy located would dit
| out !, TINT tho London supply Of meat from Scot
lanai amounting to hundreds Of tons yoarly
would DO out of; tlat the main supply Of Tege
tabloe'from tho West would bo stopped, and tina
tho metropolis would bo forced to look 10 on
that not ono Of tAoso who gave toBti
mouy in favor of adopting unifosu
tariff failed to commit himaolf to an exlibi
tion OF somo aoltlsh motiyo, and all wero oblige
to almit at Last TINT the policy would work sc
riouH injuatice, and in somo quarters absolut
ruin. AZ an instance Of its workings, the Midlan
Railroad Company now carrloa lhout 100000
tons Of coal u yoar, 2,000,o0o tons OF which 90 t
London at low rate for tho long distance; br
II the Company wero compelled to carry til
other 1000, 900 tons at tho samo rate, they "oul
DO forced to abandon tho London trade,-a rt
suit which would be damaging at onco to Lol
don, to tho Company, and to tho coal diatrlc
Another illustration was Afforded by tho Mls
laud Company, which carrics largo amount
iron.. The ratio for fifty miles or loss n POM
por ton por milo, which It hna boon four
neceaaary to Charge In full 1ecompont
for tho handling, which is aa much Il
q short distance as for long dlstanc
and tho transportation. II tho Comp
! | ny were compelled to mako a uniform rate ps