The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1873-05-23
Slate Purchase Of Rdiiudys.

| 1HE fOll0WlnR bhetcnOl u ulsCubslOn III Eng
land on the subject Of government control OF
railways will be of interest to those ag1tating
the same subject in this country:
On the evening OF March 25, the Statistical
Society of London, (England) DR.. William
Farr the president, in the chair. held discus
by Mr. Biddulfph Martin on the purchase OF
I the railways of Great Britain by the State
Captain Tyler one Of the Government Inspect
ors OF Railways, was first called upon to
speak. Promising that he attended the meet
ing in his private capacity simply, he said they
we're confronted at the outset by question
which was really at the base Of the whole SUBJ
ject, but which was too frequently ignored,
viz what would happen within such a reason
able time as it was necessary to look forward
to, and 70 think about providing for, II the
State did not purchase the railways. To reply
to that question they must appeal to the exper-
ience of the past, and look to the indications
OF the present. The experience of the past
might be briefly stated. Combination among a
great number Of small companies had been
rapidly effected, and the greater part Of the
railway system was already in the hands OF a
few large companies. Out OF 1876 miles OF
railway at the end of 1871. II, ,05S miles were
owned or worked by only 10 companies and
the remaining 4,318 miles were in the hands of
95 companies. Competition by sea had been
effective in the past, and might continue to be
30 in the future, but only to limited extent;
and competition by canal would be OF little
Il IL. A.
freed from the influence or ownership of the
railway companies. Nothing as vet had stayed
these companies IN their course of union and
amalgamation, aud there was a strong tend
ency to further combination.
Three railway companies together owned or
worked 2,6S5 miles of railway, or nearly one
fifth OF the mileage OF England and Scotland,
and their joint capt. al amounted to c 100, ,938,
100, or more than quarter Of the total rail-
way capital of England and Scotland. 1t was
not too much to assume that before many
years had passed the country would be parcel
ed out into very modeate number OF railway
districts, and that the further progress or
amalgamation could hardly be doubtful, diff
cult, or slow. Competition between railway
companies could only be temporary, and al
though it still existed to some extent, it was
dying out. The Amalgamatiou Committee OF
last year had recommended the constitution of
special tribunal, to bo entitled the Railway
and Canal Commission, and bill now befor Q
Parliament sought to give effect to their reb-
concentrations. Sooner or later, however
there would be an absolute and universal rail
way monopoly, and the question, therefore,
was: would the British public prefer, by State
purchase, railway control and management by
a vast combination of railway companies.
To avoid serious financial disturbances IN
connection with the transfers of the roads to
the Government, the purchase should be effect
ed gradually and as fresh combinations tend
ed to increase the difficulty OF dong this. the
sooner the Government adopted this measur G
the easier would be its execution. Railways
we're also an improving property, and there
was no reason why in the next ten years they
might not improve IN value as muchas in the
last ten years. The cost Of working expenses
would ever vary with the pnces of labor, fuel,
and material. but there would always be, on
the whole, an Improvement. In the case of
State purchase there need be no transfer Of
ownership as regarded the proprietary, mas
much as the same individuals who now held
the companies stock might continue to pos
sess. IL they desired it, the railway stock Of
the railway stock OF the State. The change
would thus become not necessarily one Of own
ers but one of managers. As 70 the mode OF
/, .-aI 4bot he
necessary TO raise at once 600 millions of money,
(about $4,000, OO0,0OO) or to purchase more
than the system Of one principle company. 1t
might fairly be expected that very considera-
ble proportion OF the proprietary would be
content, under judicious arrangements, to re-
ceve State paper In place Of their company
paper, and it would only be Necessary to raise
by the floating Of State railway stock sufficient
money to meet the cash payments There
would thus be partial transference OF pro-
prietary. That course would have to be re-
peated till the whole Of the railway system be-
came State property. No further taxation
would be required, the interest was already
provided, and the State would obtain posses
sion and control of constantly improving
IplOpelIy. IL Wus uOJ BeuoIhuy huONH tua
the accounts for 1871 showed that the average
dividends on ordinary stocks in that year was
(including those on which no dividend waf
paid, viz: 3111 milhons sterling, out of 23C
millions 5,O7 per cent, while the fixed interest
on stocks and loans preferred to ordinary stocl
including also those which received no cash
payment, viz eight millions out of S22 NIL
lions averaged only AZ per cent.
There was thus greater certainty as to the
profit to be derived from the transaction. The
second dificulty-that of misunderstanding
most formidable aspect in presence of tho
idea of the State suddenly assuming the con.
trole of $1,000 miles OF railway, with receipts
Of say, EiS 900, 600, (about S2lO 600 900, )and
working expenditure out Of them OF G23, ,00O..
600, (about S115, ,OOO,O ,OOO) with upwards Of 2OO,.
900 railway officers and servants to supervise
with 375 GOO, ,000 passengers to be carried, 17O
0OO, 900 tons OF goods and minerals to be trans
ported, and $50, 1000 miles to be run by
trains. But there were existing department OF
the State whose duties aud responsibilities
similarly stated, looked even more formidable
the government of the Indian empire for in.