New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-08-24
FEDERAL CONTROL OF RAILROADS.
EXPERIMENTS By VARIOUS STATES NOT CON-
sIDERED FINAL PROOF AGAINST
THE PROJECT.
THE PROJECT.

THE PROJECT.
TO the Editor Of The Trlbune'
sir: The Tribune Of August Is contained an aruce
from the pen Of Mr. Joseph Nimmo !r, In which nc
recites various attempts at railway ownership anu
operation which have at different times been mace Dy
the states Of Massachusetts. Pennsylvania, Meheah'
Illinois, Indiana and Georgia, and draws CONCLUSIONS
against the rnctieablty Of Governmental ownership
Of railways from their failure.
Without questioning the statement thst no SUD
sania degree Of success has been attained IN ths OF
any other country by the attempts al National owner
ship and control Of the facilities for railway trans
portatiOn, venture % express some doubt whetner
their entire impraciicabnity i. logical conclusion
from the facts stated. Carefully studied and ana
lyzed, the Of these cts is found to be that
several Stdtos have at various times Constructed or
purchased lines Of railway, have operated them FOR
short period, have found the business Improbable,
and have eventually disposed OF them. IL does not
appear that at any time any state has owned OF
operated AL the railways within rs territory, nor docs
It appear that If any State had secured such mo-
nopoy of the rail lines actually within lis borders.
transportation thereon could have been conducted
under the management Of such state Government en-
tirely free from competition with lines outside Of its
territory and beyond It's control The writer does
not recall any argument advanced by those who ad-
vocate Government ownership which favOrs such
ownership by the state Governments lie f. strongly
this solution Of the railway problem desire an abso-
lute monopoly Of railway facilities in the hands Of the
Federal Government, and would look with disfavor
upon any proposition which would merely transfer
existing competition from rival private corporations
10 rival state Governments. The greatest evil which
It Is hoped governmental control will eradicate is
unrcstraned and inegtimate competition, with It's
resulting unjustly discriminating rates ratewars and
Bankruptcies. That this cytl could be cured even
dpc~p I'd tram
70 Independent state Governments would be hope
too 1oundess 70 be seriously entertained The evils
Of unrestrancd competition between railways have
been too often enumerated 10 require repetition. That
they exist universally admitted The only measures
ever proposed for it, elimination Involve In some
fora or other n union Of interests on the
part o, the competing roads. AsDcio-
Citations ard pools even when allowed by law, have
proved only temporary expedlents. The only per
mauenty effective method ever fund /. the con
solidation Of rival roads into n single corporation
That consolidation into single organization would
benefit the railways and at the same time permit
substantial reduction IN the charges for transportation
is admitted by our most successful railway men. Put
the power Of such corporation would be enormous
that il could not be tolerated in private corporation
The immense power II wou'd possess over commerce
would give it ability 20 OF destroy cities and
individuals 1t would control state and National
politics ard policy and would soon solve The problem
Of Government ownership by owning the Government.
Government wneiship has never oeen tried on a
scale sufficient either 70 indicate It's merits demon
,tr5te It's defects, but there s one deduction may
safely make from the facts rectcd by Mr. Nimmo and
that IS that there no essential difference between
ownership Of railways by state and by a private
corporation, so far as the financial results Of operation
are concerned, unless at least the state hos monopoly
Railways ave failed 70 make money In the hands of
state. In the hands Of private corporations they have
often done the same II their financial failure il an
argument against state ownership in case, in the
0tncr Il apples equally against private ownership. II
Is really only argument against Legitimate COM
petition
Mr. Huntington has said that If he conld operate all
the railways of the United states as system he
could pay per cent dividends and make per cent
reduction In rates. According to the statistics
capitalization Of railways In this country June 30
1881 was nearly &9OO0OO0.O00. earnings for the
year covered by the report, about II 900 100000, and
payments railway capital, about $3.50, 900 600 or
trhe aoOve per cent. The substance OF Mr.. Hunt
mG10ns proposition therefore IS Re will charge the
70 the holders of railway stocks md bonds $19O-
100000 each year, that II he IS allowed b
destroy competition, he will operate the railways at
net annual saving OF 5000 100000. Why should not
the capitalists remain content with their per cent,
which would be ample II secured by Government bonds
and allow the whole 100000 600 10 be applied to a
reduction In rates. such a reduction would amount 70
20 cent on the rates at present in force and w)uh
inevitably result In large increase In traffic which
would in allow still further reductions In rates and
az the samc time build up and develop trade and
HAIRY TURNER NEwCuMB
Washington, d. C., Aug. b. 1901.