Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1882-11-17
GOV EgNMENT AND RAILROADS N Europe.

The question OF the relations between Gov
eminent and railroads is one Of the most i'm
portant of our time, and its proper solution
is matter Of vast importance The cx-
pcricncc Of European Governments is there
fore full of interest for us and some useful
lessons may be learned from it. In the current
issue Of Consular Reports published by the
Department of State, is an extremely inter
esting and valuable sketch of the history of
governmental control of railroads in Ger
at FrankforI-on-thc-M Nam. According to this,
as long ago as 1S3S-olly three years after
the beginning Of railroad construction in
GERMANY law was enacted imposing upon
the railroads Il special tax for the creation of
sinking fund to pay back the capital en-
poycd in the construction, after which pay
mcnt the reads were to be 50 managed that
their receipts should not exceed their opera
ting expenses and providing that the Gov
crnmcnt should have the privilege Of pur-
chasing the roads at the expiration of a Ger
tain period of time. The severity Of this law
had a restrictive effect, and railroad building
made SLOW progress. In 1s42, therefore, n
law was passed empowering the Govern
ment, in the interests Of the public veal to
forward the completion of a sufficient system
of railroads in Prussia by guaranteeing the
payment Of 81 per cent interest on the cap
ital for which purpose 1900, 900 thalers per
year of the public revenues were to be appro-
priatcd. This resolution was carried out, and
certain sums of the State revenues were an
nually set aside and employed to further
railroad cnterpriscs. The country, however,
was not ready for Government railroads, for
in 1S41, by vote Of more than two to
one, the Government was refused leave
to build railroad Of its own. But
two years later there was change
| in popular opinion Tie Government
obtained coutrol of the two principal trunk
lines Of the country; and in 1853 a law was
passed providing that the Government should
purchase, in opcn market, the shares Of such
railroad lines as il deemed desirable to ac-
quirc, the interest and dividends thereon 10
be applied in the same way. In 1860 there
was reaction and the law of 1858 was re
pealed. A few year; later the Bismarck era
began and in respect 10 railroads rs to every
thing else the doctrine OF Capitalization was
carried to its utmost strength. The federal
constitution Of Germany, adopted in 1871, re-
cognzcd distinctly the principle of govern.
ment control of railroads. While leaving to
each State the right to acquire, own, and
control the lines within its separate domain,
it bound them to 50 mango them Us to make
all the German railroads one comprehensive
system. 1t provided for the adoption of uni
form methods of management, Of police and
safety regulations BY lis provisions even
the question Of freight rates was reserved to
the imperial government, the object being to
make rates US uniform as possible through
cut the empire, in order to facilitate the
commerce between the States. In 1874 a
law was passed creating a government board
for the general supervision OF all the railroads
of the country, and for the past eight years
this board has been performing its functions.
|
SANITY buying up railroads and it now owns
more than rs pr cent of the total railroad
mileage of the country, and Bismarck has
his eye upon the remaining % per cent. As
to the practical working of the roads the
Consul General gives some rather interesting
figures The receipts derived from an the
Prussian railroads ow ned by the State were
as follows; In the year 1S79-'S0, 1871 ,0Ol,
1871 marks in the year lSS0-'Sl, 3i2, 90G 2G9
marks an increase of SO per cent. The ex-
penditures were as follows: In the yer
ls79.'S0, 1870, 1893, 29S marks in the ycar
1SS0-'sl, 1873, GAG, 5ss marks an increase Of
10 per cent. The gross profits therefore
were: In the year 1s79IsO, $50, sos 03a
| marks; in the year 1sSO-'Sl, l59, $50 6si
marks. The figures show an actual increase
of receipts during the fiscal year 1SsO-Sl
over those of 1S79-'s0 of 1l,90i,93s marks
This increase is not due, however, to an aug.
mentation of business, but to the extension
Of the State system The capital invested by
Prussia in RAILROAD property on April |, 1881
calculated on the basis of l1,303.s0 kilome.
tiers, estimated to be on that day IN the pos
session of the State, was 1919, 1854, 517
marks,
, The total number of officials aud workmen
employed by the Government on its railroads
is liz, 446-or considerably more than the
the entire civil service list Of the United
States Here, it is forcibly claimed, lies the