The sun., 1886-06-03

large section Of tho urban artisans, is plainly
q tentative application Of the theories OF Mr..
HENRY GEORGE. On the other hand, leaf
has as palpably been taken from BIsMARoK's
book in the proposition that the State shall
buy and operate all the railways In the
United Kingdom, a plan advocated by q we'll
known railway contractor, Mr.. CHARLES
WAXING, In paper whose main points have
boon presented In the Tribune. .As his views
represent tho avowed wishes Of strong and
growing political faction. they will COM
mand good deal OF attention.
It is amusing to contrast the equanimlty
with which British nnancier surveys this
colossal operation, with tho perturbation ex-
cited by Mr.. GIADsToNE's proposal to appro-
pirate $3.50, ,OOO 900 to the deliverance OF Ire
land from some OF her allen landlords.
Eighteen months ago the capital Of the rail-
ways OF the United Kingdom amounted to
upward OF four billion dollars. The present
national debt is, after crediting the British
treasury with the market value OF Its Suez
Canal shares, q little less than three and
three-quarters billion dollars. Mr.. WARINa,
therefore, at q stroke, would moro than
double the national indebtedness But the
increment, 30 he would rejoin, is merely
nominal since the net annual revenue from
the property acquired would more than cover
the additional interest charge for consols
That would depend on tho efficiency and
economy with which the railways were man
aged II the masses Of the British people,
who under the new Franchise act and Seats
act will become more and more absolute die
tators OF legislation and administration,
should clamor for cheap freights and cheap
fares, the railways might have to DO operated
at heavy loss. 1t Is true that somewhat
less than half OF the capital invested In these
enterprises now returns an interest some
what higher than the British Government
has to pay upon It's bonds. But the other
half returns less. and fraction Of this mole
ty does not yield penny to investors.
1t is very doubtful whether, were all the
railways now consolidated in private hands.
and the present charges for freight and
passenger transportation left unchanged,
they could be mado to earn net income OF
three per cent. on the whole sum invested.
But tho problem confronting State railway
management would be much more perplex-
ing, for the main ground on which the pur-
chase by Government is advocated Is the ne
cessity OF lessening tho burdens imposed by
certain roads on traffic and locomotion. The
railways whose charges It Is deemed most
essential to cut down, are precisely those
which now manage to pay fair rate OF In
terest upon their debts, or q reasonable divi-
dend. In the fierce and ubiquitous COM
petition which governs railway management
under the present industrial arrangements In
Great Britain, the solvent corporations
would have voluntarily lowered their rates
long ago II they supposed that the increase
OF business would bring a counterpoising
gain. Some Of these successful roads may,
as we have said, be forced at present to earn
q relatively high interest upon their doben-
lures, and If the Government should buy only
roads Of this sort, 1t could undoubtedly
diminish the charges to point where the
would just meet the normal interest
on consols. But that Is not at all Mr.. WAR
mos proposition. He would have the State
buy oil tho railways. insolvent rs well as
solvent, and he furnishes no proof that the
lean kline would not devour the fat He has
not even demonstrated that with the present
charges unreduced the aggregate earnings
Of the whole railway system would suffice to
pay three per cent. on four billion dollars,
the assumed collective price.
1t may seem but a short and logical step
for State which has already bought up the
to go on and absorb tho railways.
But whether tho next step Is advisable is
simply. as the British taxpayer would in tho
end find out, question Of pounds, shillings,
md pence No State has ever yet bought
he property Of private corporations without
paying too much for it, and no Government,
,ven OF the paternal order. has ever oper-
lted railways on an extensive scale with sue
,ess. In England. which is fast becoming |
thorough democracy. tho pressure on the
OF tho hour to how down
'reight5 and fares below the interest paying
init would prove in practice irresistible.