Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1883-01-06
STATE nAsAasmEsr OF RAILROADS.

on behalf Of State ownership of railroads.
In matters of this kind little actual ex-
perience is worth great deal of specula-
ton. and therefore some account of the
results of State railway management in
France is opportune. The Paris CORE
spoudent Of the New York Nation in a
recent letter gives resume of a paper by |
the eminent economist and late Minister of |
Finance m the Freycinet Cabinet, NJ. Say, |
or the subject. Ths paper of M. Say az
peared IN the Journal des Economists. The |
account given by him Of the condition of
the French railroad system is not calcu-
lated to afford much support to the theory |
of State ownership or management OF rail-
ways. NJ. Say declares that estate man
agement is disaster" and he proceeds
20 prove it. He shows that the most reck.
less extravaganza and the most wonderful
lack of Judgment have constantly character
lied the Government railroad policy,
That enormous plans have been proposed
by successive Ministries, covering the
country with complete network of lines.
That very large proportion of these lines
have been projected without any reference
to the demand for them, and consequently
without any guarantee for profitable en-
ployment. That successive Ministries have
rivaled one another in this kind of ex-
travagance, in order to gain popularity by
promising the people more railroads. That
the Deputies have got accustomed to help
themselves by promising railroads to their
constituents, just as American Congress
sional candidates promise Federal Offices.
That 81 every farmer, every important man
Gin department, asks with the greatest
" composure for the line which is most
convenient for him." And everything
is in confusion. Railroads are begun in a
hundred places, and left unfinished. "The
Question of the railways is still in sus
"pense; immense works are begun every
"where, and nobody knows what will be-
"come of the lines which are in construc.
81 ton in all the departments"
The State line, which it was supposed
would have been perfect model of man
agement, and which was to have adopted
tariffs which were to serve as guides for
the whole system, "has proved CON-
"plete failure. It does not pay. A deficit
of forty millions of francs has already
been created by it, "and people are ask.
ing themselves what would become OF
the dividends of the existing lines not
managed by State officials, if they be.
came the property of the State" A
very natural and pertinent question under
the circumstances, but surely not at all
difficult to answer. State management,
instead of being economical, proves to be
frightfully extravagant. In four years the
net earnings have diminished 20 per cent.
while the expenses have increased to 81 63
per cent. The result of this kind of off.
cial management is the deficit of forty mill
ions of francs. already spoken Of, and it is
further evident that under the same sys.
tenn this deficit must continue to increase
indefinitely. Nor have the French public
gained in one way what they have lost in
another. 1t might have been thought that
the tariffs of the state railroads at least
would be satisfactory, but they are not 80
at all. The tariffs, which were to be
models, have been sources of trouble and
injury and vexstion to the public inter.
est. They were founded upon the prin.
ciple of making everything equal, without
any regard to differences of conditions.
The result is that they have produced
much more harm than good, and that they
have driven from the state railroads all the
traffic which could find any other avenue
of transportation.
Nevertheless the French Government is
committed to an immense network of new
lines. None of them are finished. Most
of them are barely begun. But it is al.
ready apparent that they will cost an
enormous sum, and that when they are
completed the state will not know what to
do with half of them. NJ. Say says that
ga year ago the budget for this plan of
extraordinary work was steadily on the
increase from four milliards we arrived
cat six milliards, and the public asked
itself if we should not even attain to
seven milliards. During the year spent
since these prophesies were made, new
accounts have been rendered, and now it
is no longer question of seven milliards,
but of eight milliards." That is to say,
sum nearly double the enormous ransom
paid to Germany after the late war, is
pledged for the construction of railroads
for the control of which the state has al.
ready shown itself incompetent. M. Say
warns France that period of financial
trouble is about to open, and that France
will now enter upon difficulties which must
tax all her energies for long time. But
unless she gets rid of the railroad burden
which threatens to break her back, it is
difficult TO see how she can hope to relieve
herself. For if all the new roads are
finished and put in operation nothing can
be expected but the more rapid increase of
the present heavy deficit.
In fact experience has shown, in the case
OF France, that State ownership and man.
agement of railways is impracticable, and
that it can only aggravate and intensity all
the evils it is intended to cure or alleviate
Contrast the systems of France and Eng.
land. The former has attempted to pro-
tect the public by Governmental interior.
ence, and has failed, and made her rail.
roads confusion and source of loss to
the State. The latter has judiciously re.
Trained from interference with the develop.
ment of her RAILROAD s,,.4,n, - ~