New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-05-31
ENGLISH RAILROADS.
PROPOSING THEIR PURCHASE BY THE GOV
ERNMENT.
cuARLrs wARING on TIE FEASIBILITY OF ihN
PLAN AND ITS ADvANTAGEs-ITs PRObA-
BILE EFFECT on THE CREDIT
OF THE NATION.
tRY CABLE TO THE TRIBUNE

toxpoy. Nav 3O.-Charles Wa"ing, one OF
the best known railway contractors III England mas
,repatei paper advocating the purchase or the E"gsn
raways by the Government which will shortly Do pno
ushed 1t ia understood to represent the views OF MT.
chamberlain and OF q strong section OF the Loerai
K,dtcais. and It shows that the Railway bill OF Mr.
Mrniella was simply preliminary leeier
to the agitation OF this stupendom measure
Mr. waring assumes that the hrst thinS W 70
determined is the object with which the isi"Ns'""
he worked whether source of profit to the Ire"S'
or a. source OF industry. commerce and traae' anu
the benefit of the people generally. HeS '"e 80
,.,acranh svstem asa step toward the he" ine"'
.ps the position that the State cannot "
a loss maintaining that the state can uo '"'s' ,.s
,,srn,ore great advantage over private companies
,,,,, ,,e o.t pubc benehs out OF the rairoas Az al
instrument Of national wealth The proh's oi ''"uo',
n are now determined by the rates OF the private
companle. and this acts in restraint OF excuanRe' 'n
growth OF commerce would he both rarid anu isrRo" "
could be as beforehand or the cost Oh car
riage on each transaction as they arc ho" Va '
nostare or telegram rates
,rer y,iuc over the whole subject In detail Mr war
ting poins out that OF the present railway capa' Vi
r,yl,ni s250OOOO00 receives from TO per ceu'
,p,src.t ESQ 600 900 from to per cent Roooooooo
,,om 6 TO : per cent aud s700o0O0 over per cent
hsn the normal interest rate has fallen In twenty
wars from 5xo = per cent and is still falling IL Is
.a,tons mgfer tnst trais should be thus taxeh. Inc
abe. but tho future belongs to the people,
-, .xncrepcs tesche. that they shoIt no longer de-
Law entering in;o possession. Daring the last ten
wears of 500 100000 added to railway eapt"
"a per cent has been in debentures nj
,ors,ti,l rates much above the rates paid by the
c.. This shows that the purch Of the railroads. II
70 he Effected should be speedily effected. Mr. "arihg
nonis out that the three great sources OF ecoho. al
s, ,,e administration saving III cost OF extensions
compere utilization OF present means ior hcreaseu
traffic and saving under unity OF ADMINISTRATOR anu
he then concludes "a follows:
The great obstacle to the purchase OF the raNwaSs
and canals with their docks ferries steamers estaosu
ments is the magnitude OF the hnahoa
operation involved and the absence OF settieo proPo'
upon which 1t be effected Fifteen or twenty years
the property might haze been acquired for between
600 oOuOO0 and sSoO.OOo0o0; the purchase
nancy would amount to be asout
oouble that sum. The capital OF 'ne
ra,uav companies of tho United Kingdom amounted at
the end of 1854 TO ssO146i3i7 the proportions OF 'e
different; stocks being: Ordinary "-9N''So'ffo'
ruar.nteed AMI preferential, s30o.ll2,Sl7 loans
an1 dahen.ures a2Ol O6s O74 all Of which except
ss 600 oos was bearing interest The canal stock not
owned by railroad companies Is hoou'
eloOOOOoO. The problem is' therefore, no"
10 purcnase an undertaking representing In rouno
A,nres about 81 ,OOO,OO0O00 The idea OF adding
tnoassnd mo-s to the national debt by as it WERE the
stroke O, the pen is tel. appalling to some minds b
,,rnscessarly So The railway consols would represent
propety the value of which 1t is possible TO ascertain
almost to a sovereign ana the question whelher u
onll he good or bad bargain. The rSk such as IL Is
consists in danger OF the state being ontwteo I'D 'e
transaction or in its buying property which 1t cannot
ec,e,tly manage or turn good account. The object
~ This article is 10 that fair price both to buyer
and seller it would prove good bargain ana one pfes
pant with iuealculabe advantage to tie people,
The compulsory appropriation OF railway property
p1esents no difficulties In principle large portion oI
T. consists o: land which has been acquired uhdet com
,.,ls,rv noxers la dealing with railway property tse
Parliament has before compelled preference snare
boders 10 take lower rate OF ID crest tnah the| au
contracted for and has often allowed iresh peio eh'"
capita to be created existing preference sha'es
n1 new aebenture stocks over existing deDentures anu
rent charge stocks over both The act OF lsli, when Is
s.nued 10 % "A KIND of bargain between the Government
and gives power to the treasury 10
rurchase al railroads male between lSl3 anu looo ut
tvenvnve years purchase OF the annual prohts cacu'
lated on the average OF the three years preceding H.
boweyer the profits do no anont 10 10 per cent Oh 'he
cap,al the price Is to be referred to armrauoh Inc
hasis q, the arbitration wnud b. twenty-five years pur-
chase of prJfs eqpal 10 per cent on the capta LOT
or,ct,c,l prrpo.es This statute was niooIh ana j.
puly worth mention in tn connection Tor the u
,hoinc thai compulsory State purchase of railroads Is
not only justil,be but WAS always coh'oni""'o" ~
Parliament.
the uricc which the Government should pay or the
railroad. and the method OF computation areaers on
which no one Will dare TO dogmatiz ii Is SUBJECT lo
the most deliberate consideration o. state eI ana nnah
cers BIT there are two main points on which the
pubic conscience must be satisfied. namely that tue
shareholers shall he dealt with honestly and that the
Stale shall nav real and not nctltlos Naiue iueie
Is no danger that railroad property VIII DC ="
that the property OF man Will be taken away an"
given 10 any other or eass of men, nut on the ol"er
hand II is equally impor ant that the public convenience
I r,suer,v shall not be sacrificed TO "a sentiment, or
In to au act Of Parliament passed forty years
~, which va, molbund ironits birth aud when mas
nevsr inhuenc ed the investment OF shhS' Ino just
urlncpe o. dealing with the sAarehouei7 "o'u 10 W
Give them the actual acerta ned value OF ther shios
,aa Il, any prospective value which rests oD reason
,,,o ,,,ud',ino and king also into account the In
nroyel security they will have. Au allowance ioI con-
pnsory cxproprlaton conversion by WAY OF penalty
inflicted ON the state Tor purchasing Is no AcS - 10
entertained. ,s oou,a hardly complain
n, ma couyersion here suggested foi they exercise
witpnnt compensation TO SHAREHOLDER III Cases
where there preference or uel lreciao1 roiy"aS
several constituents IN the atp,i ~ MANNER in
roperty sucn as the amount OF capital IN inaer , hn
wch raised the re'ense evs long perloas nd the
valuation OF plant aud work ana rolling stock iht e id
vc ir i,'v railway which has allowed its rolling
stock lis permanent way, us statlohn anu ie i, M
e2u% - and the market price of stocks is not in as
sound "A cordtOn one which has l1oNucu 's''' ala @
i and an audit are inds pesahle preninMies o. pur-
caa,e OF interest ana tue marhea uu y
tair ,ni. in the OF guaranteed ana preiei cntia
and o,n and nebenture ocks where they wOua os ue
c.s OF stocks in railways which ars ~c estaoiSnou ~
e,s computed. aud IL Is liDpT,ah. 70 no'oc t. w
ahnut 80 uer cent OF the total railroad capital
The or,inary stock is difficult to arprase but
r~.n hs value OF the thing ana the oasis on
s,; 90 vaue ran,be estimated, ana the true
value can he determined with maenailca IrsS'slon. SION
II is matter for an Investigation oy an
a. ,hch ali interests would be stron2iyfcpiesented
Iarhsr than for general discussion Inc propaply ~
tst the estate would ay rather more man tie true
value but would De required that thn dement's
OF state purchase were not largely dscouh'cu III 'no
transaction. -, :. A, a;s.rs.,or that
@h. Coverrment would have TO 20 INTO the market 10
.e y 600 900 900 ard .tnat under ich conditons ~
snuld not easy to estimate the effect on tno price Vi
consnls or To anticipate the rate at whieh lno nono!
could be borrowed Ii is not question OF Ihd'ne none!
Sowsver but of tho conversion OF railway stock nso
CovernI,ent stock II portion OF the Investors o
tsc,ed TO take Government paper they cooh De PAU r on
iON'oN ,llaru uuuld