New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-08-18
THE RAILROAD PROBLEM.
mPR,CTICABILITY OF GOVERNMENT OWN
ERSHIP AND CONTROL.
rxprR1ENcE OF STATES HAT HAVE OWNED
r.1LRoAps-ALL WE'RE OBLIGED TO ABAN-
Don A DISASTROUS ENTERPRISE.

TO the Edlt0r OF Ihe
Sir: In a recent article / attempted to show, rom
ve experiences of other nations. the impracucablhS u
governmental ownership and management Of raiiroaus
In tho United states. l propose now to present So"io
facts IN regard to the practical results Of siich eHpelr
ments I'm this country. The States which nave maue
Tho attempt and have abandoned it In favor OF lh"e-
nendent corporate ownership and control are Mhssa
cbusetts. Pennsylvania, Michigan, Illinois, lndlaha anu
Georgia. ~
Massachusetts-If the successful ownership anu
management Of a railroad by a state government "eIv
mo cticable, such success might have been confidently
eXpected in the commonwealth Of Massachusetts III
TROY and Greenfield Railroad Company was charlese"
in 1913. but after years OF struggle ended In faiInre' 'o
state took possession Of fhe entire road In the year
1866 and completed 1t. The work emDraceu to
Uoosac tunnel, the longest railroad tunnel In inc
United States. Different plans Of administration "er1
resotted 10. but without success, and In the year 1901
the entire property passed from the possession OF '"e
state to that of the Fitchburg Railroad Company
Thus did the good State of Massachusetts, as tFS
suit OF an earnest effort, yield It's verdict IN iaVor "
the proposition that railroad transportation In ths
country must be regarded as a private enterprise ""'
not as q public function.
Pennsylvanla-The state Of Pennsylvania made inc
earliest, and perhaps the boldest, attempt in TINS coun-
try at State railroad and canal ownership ana oon-
troll. In pursuance Of legislation adopted III i0-' mO
state embarked In the construction OF a uahSporI''i'"
line nom Blllduclphld u IlllSDuib' I'M
in 1923. consisted of a railroad from Philadelphia 10
Columbia, eighty four miles long, where 1t Connected
will a canal extending to the base OF the AnegiiahS
Mountains. The mountain summit was overcome Dy d
system of inclined plates extending to Johhs'o"H'
and a canal on the western slope completeu the llnc
10 Pittsburg. The b0hness Of this enterprise i w
dIcarGT by the fact that when 2 was inaugnrated IL
was a debated question whether the railroad portion
of the line should be operated by locomotive engines or
by horses. The State Of Pennsylvania sold these
works 10 private corporations in the year lo1o as d
rpsul: of a conviction drawn from experience ana never
shaken that the work Of transportation must DC ~
earded as a private enterprise and not as a pubic
function.
Michigan-soon after the admission of Michigan into
tle Union I'm 1896 the state Government entered upon
a scheme of railroad construction and operation aiuh
by a large land grant from Congress for lhternai li-
r;rovcrlents. This scheme embraced tho Michigan
Central Railroad, the Michigan Southern Kallir@l anu
other lines. The impracticabIlity of the scheme was
soon developed. In 1916 the Michigan CentInl was
sod to a private corporation formed by Boston capl-
~tall,ts. The sale of the Michigan Southern followed
soon aftcrward. and i'm the year 1850 the people OF
Michigan Incorporated into their constitution . pro
vision which forever inhibits the state HOm being IN
terested I'm or engaged I'm carrying on any WORK OF
internal improvement. Thus aid the people OF Mich
lzan express. rs the result Of practical experience
their conviction that the work Of transportation as
well as the maintenance Of n railroad. must be RENTED
TO private enterprise, and that II cannot be treated as
a public function. This result IS the more striking
in vicG of the fact that at the time 1t was attempted
the conditions were much more favorable 10 success
than now, each one of the lines In Michigan being an
autonomy In the work Of transportation whereas at
the present time each line Is essentially a part of a
dnntic and exceedingly complex National railroad
system. This remark applies also to all the other AT
tempt, made In this country at raload MANAGEMENT
Ilinois-The state of Illinois in the years 1889
built, and for about two years operated, the " North
ern Cross Railroad extending from Springfield to
Meredosla, dls'a06e of about fifty miles. This work
cost about 81 100000. II was operated by the State
for two years. The income from it was less Chan the
expense of operating II, and ii was eventually sold
for 100000. 1t is now a part OF the Wabash Kali
road. The people OF Illinois have never since at
tempted 10 embark In tho experiment OF state owner
ship and management of a railroad.
Indiana-The state Of Indiana began tho con-
%structlon of a railroad from Madison. on the Ohio
River. to indianapolis, In pursuance of the provisions
Of an act adopted January 81, 1885. twenty eight
and a quarter miles OF the road were constructed by
the state at a cost OF 81 ,oO0,0OO, including the cost OF
an inclined plane at Madison. BY an act of the Lesls-
lature adopted in 1912 the State ceased to operate
this portion of the line on February 90. 1543, and 1t
passed under the control of Il private corporation, which
completed the road to indianapolis in the year 1910.
The people Of Indiana have never since manifested any
desire 10 renew the experiment OF state ownership ana
control of "a railroad. On July /, 1S47, the state OF
Indiana turned the Wabash and Erie Canal over to a
private corporation, and thus, like the state of Penn
sylvanla, completely divestcd Itself Of all responsibility
for the conduct of transportation both by water and
by rail-a responsibility which had been attended with
increasing contention and trouble.
GeOrgia-TTe state Of Georgia embarked In the
work Of state ownership and management under eX-
ccptlOnaily favorable circumstances. The Western aud
Atlantic, or state Road, built by The state, was opened
for traffic In the year 1860. 1t connected the rail-
roads of the central and western sections of the country
with those of the south Atlantic states. Although this
attempt was made In q progressive state, well admin
lstered. the practical results Of the experiment clearly
Illustrated the folly Of attempting to operate a railroad
through the lnstrunentalites Of Il State government.
The ec9nOmies Of management were subJidlnhted 10
political exigencles. and bad administration frittered
away exceptional opportunities for success, afterwhFu
realized under private corporate control. the expert
ment completely illustrated the folly Of attempting to
make tho work of transportation a pubic junction, In
1870 the Western and Atlantic Railroad was leased 10
q corporation Tor twenty lsars, ~ q iclJai OF 1927
q month, and IL il now IN the hands OF receivers. ma
letter dated June ls, lo9l; the Iol; Joseph Bro"n'
eX- Governor OF Georgia AID eN-lnited states Senator:
gives me the following testimony against governmental
any serious danger that our Government wOuld be
guilty Of the folly Of attempting 20 purchase all the
railroads OF THIS country ana putting tlGm under S G@Ss
sufficient reasons why Such a system would be i'm
practicable and intolcrablc.'
large leans and grants Of lands. or became large stock
holders In railroads from correct views rs to their
enormous powers for developing the natural resources
OF the country but such states %pudentIy RETAINED
from any attempt at state management OF railroads.
The state Of Virginia, for example, was AZ one tine
u subscriber 81 two hfths Of the stock Of certain rail-
reads and canals, but was never tempted into TIE
experiment Of State railroad management. The state
OF Missouri became the owner OF several railroads
upon the default Of their obligation 10 the State but
the experiences Of other States deferred the people ~
Missouri from the experiment Of state management,
and accordingly such roads were sod In 1868 to private
corpornttons. The general tendency of oil the states
during the inst thirty years has teen TO withdraw from
financial associations with railr1ad construction.
In my previous article | omitted to state the cx-
pcrlences OF South Africa IN railroad ownership and
management. snch attempts have degencrated Into q
scramble for local appropriations for new lines, much
after the manner Of making mp a river and hnrbor
bill In Congress. The construction OF Government
lines by Canada in connection with It's non paying inter
colonial railway system haS besides given 10 the farce
OF L" the railroad I'm politics. its broadest and most
Migrant expression.
Five states. viz. New York. Pennsylvania. Ohio,
Indiana ard Illinois have attempted the experiment OF
State ownership and control Of canals. "A comparatively
simple matter. rs the work Of the state has In each
-I--- Loo nEn a. .H- - araI