The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-06-12
GOVERNMENT OWNERSHIP OF RAIL-
ROADS.

The New York Commercial Advertiser
has made some interesting calculations
by way OF comment on Senator Car
isles catechism of the Alliance del
egates who visited him at Cincinnati
recently. That statesman, it will be re-
membersd, treated government ownership
of railroads as an insuperable and neces-
sarily ruinous undertaking.
The Senator estimated that the railroads
now in operation or under contract for
completion would cost the government, on
fair valuation, about Sl4 ,000, 000, 900. This
estimate is shown to be excessive. AT the
present market value of their stocks less
than $10,oOo,OOo,Oo would be required.
The facility with which corporations of
limited means float blanket mortgages at
moderate rates of interest on stocks that
are several parts water for one of road,
leave little room to doubt that cover-all
mortgage, based solely on actual ascer-
tanned value, guaranteed by the govern
ment, could be fioated on highly favorable
terms, perhaps three per cent or less.
A<otaihdhthS VIC pppa1atiuH only Sixty
millions. this purchase would involve an
Indebtedness of just $50, which added TO
the present Indebtedness of about Sl4
would make total indebtedness of 1854
per capita, but the New York paper. with
out going into exact details, roughly esti-
mated it at si75. This, according to fg-
ures recently published. is about sos per
capita less than the present debt of France.
and about 500 per capita less than the
average debt ofthe states of the Australian
confederation, and but little more than
one-halfthe per capita debt of Queensland.
On the basis of last years business.
making no claim for added business ON
newly completed roads, or those nearing
completion, an average freight rate of 2
cents per ton per mile-classifying so as to
make reasonably higher rate ON compact
and costly fabrics, and proportionatelv
lower one on bulky and low-priced
products-and a common rate of 3 cents
per mile for passenger fare. would produce
net income, over and above operating
expenses tincluding repairsl, amounting
w iaoiS ehah FfoV.uNVVpu year, or interest
at Al per cent. on the whole system.
This, with the debt drawing 5 per cent
would leave profit margin of sls0. 900 600
q year, which of course the people do not
wish TO make off of themselves, transfer
ring from one pocket to the other. hut this
margin might be left 10 cover the differ.
ence which The Senator deems inevitable
from management by the government
rather than by individuals. And some
allowance must be made for the fact that
government would not, like the railroad
corporations, pursue policy destructive
TO other transportation agencies by having
different rates for competitive and non
competitive points.
1t may be that the government will
never be compelled to adopt this course.
Healthy public opinion is against il if il
can be avoided and justice meted out to
ell the people. But conditions may arise
that will create an irresistible demand "a
this effect. In view of such possibility i,
is we'll enough to forecast the conse.
ouences and the possibilities. Perhaps
they are not as formidable as has been
supposed. Perhaps they are as simple
and as safe, perhaps would be less un.
profitable, than management of the post
Office system. 1t can do no harm to study
the question.