, 1874-06-07
cheaper, and there ia no speculation in railway

There is another side to the state system
! however. It may be asked: How would such
system work under our form OF government
What would be the effect OF the enor1uou
| amount Of patronage it would throw into th
hands Of the Executive on the politics and vel
| fare Of the country? Is it advisable under ou
present Civil Service to adopt sucl
a. system? Would it not be dillicul
to distribute the railways through the country Il
| such manner as to give satisfaction? Wonlt
not the South complain that it did not have itt
snaro Of railways as it complains that it has no
| its share Of greenbacks? The demands of pol
iticians would be apt to be considered in the CON
struction Of roads, under such e. system, rathel
than the demands of business
1t is extremely doubtful whether State rail
way system would work at all under our form o1
government But il the State should not OWE
the roads in this country, certain it is that the
Government should have something to say about
their rates. In Germany and other parts OF
Europe, two plans have been tried to prevent the
abuses Of railway franchiseB.-one, the fixing OF
aend- Neither System has given satisfaction.
The maximum charges hare been, in Germany,
left high enough to enable the stockholders to
earn q dividend Of Is and even 20 per cent.
The roads, except where there is competition,
never charge less than the maximum. When 3
maximum dividend OF 10 per cent. say, ia
allowed, it has been found that, when the net
profits have exceeded that amount, tho COM
patlies, rather than allow the public to
get the benefit Of the increase, have
spent it in improvements Of the road
not absolutely demanded. This has hap
pened in England, oven in the case OF tho Liver
pool l. Manchester Road. Prof Rau mentions
case whoro in England company, although
1eaping profit OF 1u por cent, instead Of dinin-
ishing its rates, increased them to 81 per cent.
In viow Of a1l these facts perhaps for this
country the best plan that can be proposed is
something like the following:
l. The companies to retain the ownership and
to manage their roads.
g i maximum dividend Of 10 per cent to be
allowed on the actual capital invested in the
roads.
8. The appointment of Commissioners by the
Government to represent the interests Of the
public: said Commissioners to hare voice in
determining what expenses are actually needed,
and to see to it that necessary improvements
are made, and that no unnecessary oncs are
made with the intention merely OF depriving the
public Of tho benefit OF al increase in the net
profits Of the road.
1. The books Of the companies to be open at
all times to the Commissioners to enable them
to know the financial condition of the roads, and
put them in way to recommend tariff which
shall insure til companies reasonable profit,
and not conflict With the rights Of the public
and the interests Of commerce.
5. The Commissioners to constitute perma-
aent Board, and see that the legislation affecting
rnllways be carried out.
It will take time and Investigation to mature
my perfect PLAN The course Of the Wisconsin
Legislature. which fixed the tariff for the rail-
ways in that State at hap-hazard, cannot be too
strongly deprecated. Investigation ehould al
ways precede recommendation. Good legisla-
tors, unlike good poets, are made, not born. Be-
fore legisating on railway management, it would
be well for statesmen to study the operation
and the management of railways in other
countries, Europe has been experimenting in
-alway reform for more than quarter OF cen
tury~ It has in operation both State and private
-ailwayB. In some European States there is the
mixed syBten1~ Where private roads exist e1clu- |
lively, many excellent laws have been passed In |
he interests OF the public. Why should We not
AVE tho benefit of European experience? It |
Tould be IN e1celiont measure for the Goveru- |
nent to appoint Board Of Commissioners to |
proceed to Europe and report Oh railway man
cement and railway legislation there. Such a !
when its labors we're ended, would, |
re arc certain, be able to recommend some very |
rise measures Of reform. To institute such |
and to act on the information re-
eired from them, would be to proceed scientih- |
ally and methodically, instead Of awkwardly /
nd angrily, as We seem to be no RI going. /