The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-06-19
THE RAILWAY PROBLEM.
A vexed Question That Should Be
Kept Wholly Out Of
Politics.
Objections to Government Owner
ship and Managementin
This Country.
Defcit In tho Postal Service-Governna ont
Control In European Countries
Senator Carlisle's Opinion.

Control In European Countries-
Senator Carlisle's Opinion.
The following article appeared in tho
Washington Post OF June s, nd is we'll
worthy of a careful reading and study:
In your issue Of May q there appeared an
article favoring the ownership and manage
ment of tho railroads of the United States
by the national government. I can con-
ceive of no proposition more revolutionary
in its tendencies. But the question has
been forced upon the public attention, and
it may be we'll to discuss it. In this CON
nection I can only state a few of the more
important facts bearing upon the subject:
1. The opinions which have been ex-
pressed in favor of government ownership
and management of the railroads are all
characterized by a failure to apprehend the
overshadowine and all-important fact that
the commercial and industrial forces OF the
country are much more potential in deter
mining rates than are all the railroad man
ayers of the country, either when acting
separately or in concert. Before the age of
railroads each commercial city of the coun-
try had a trade area determined mainly by
it's facilities for transportation by
water. Freight charges were then in
each case determined by the condi-
tons of competition which characterized
such areas. But our splendid railroad sys-
tenn has changed all this. 1t has provided
a means of transportation vastly superior
to water lines in the possibilities of collec-
ton and of distribution, and now constl-
tutes one closely connected system OF
transportation. Thus the former segre-
gated trade areas have been broken up. AT
the same time the commercial and indus
trial forces of the whole country have been
brought into instant and intense competi-
ton with each other. This struggle i'm
poses restraints upon freight charges which
the railroad manager is powerless to With
stand. In fact it has much more to do with
tho determination of freight charges, and
especially relative rates. than any yolltlon
which it is possible for the railroad man
ager or for any traffic association to exer-
else. Under this Tightening grasp of oom-
petition freight charges have fallen on the
great trunk lines Of the country to half
what they we're thirteen years ago.
Government management OF the railroads
would clearly involve a governmental de-
termination of the relative strength of the
commercial forces of the country in their
constant upheaval and evolution. The only
recours from this hopeless task would be q
general leveling process under horizontal
freight tariffs. But the people of this free
and enlightened country who carry on Its
productive n commercial enterprises will
submit to no such despotio interference
with the course of the development of their
industrial interests.
The value of the commodities moved over
the trunk railroads of tho country annually
ia four or five times the value of those rail
roads, including both realty and equipment.
This alone indicates the o~verpowerlng in
auenos of commercial over transportation
forces.
Dc not the foregoing facts clearly indi-
cate that the governmental management of
the railroads would involve the govern
mental management of commerce and in
dustry? But what man in his senses would
for a moment entertain such q proposition
as this?
2. The argument drawn from the success
OF the government in conducting the postal
service is utterly inconclusive as to the adj
visibility of placing the railroads under
government management. The success of
the postal service would be impossible were
It not for the fact that private capital and
enterprise nave provided the railroads, and
the cars, and the train service. Besides. a
hard and fast leveling statute determines
What compensation the railroads shall re-
ceivo for the transportation OF mails. Such
power exercised over the agricultural, the
manufacturing or the commercial interests
of this country would create a revolution
postal service above postal receipts during
the last twenty years amounts to $S5,535,-
O78. an average annual subyention of ST.
276, 753. This is we'll OF the safe side of the
rule that the government can acquire no
interest for profit in any sort of business
enterprise. The annual cost of operat-
ing the railroads of the country is
eleven times that of conducting the en-
tire postal service. What, then, would
be the amount of taxation which
would be required in order to subsidiZe the
railroad system of the United States? Why,
we should be compelled to restore our war
tariff and internal taxation in order to meet
the new demands upon the public treasury.
3. Your correspondent infers the success
OF governmental ownership and control of
the railroads of the United States from the
experience of Australia. That assumption
does not bear the slightest touch of investi-
cation. The construction of railroads in
Australia failed as a private enterprise.
Then each one of the five colonie took the
matter up separately as governmental en-
terprises. The railroad system Of each one
of these colonies has a different gauge and
therefore therefore there is nc general Aus
tralian railway system. The various lines
have been 30 located as to avoid competi-
ton. Railway competition Oh the other
hand is the predominant feature of our
huleIlCau IuIlIoa0 sysGeul. LILO TalICHas
of Australia are run almost without profit
Their construction has been a source OF
grave charges of dishonesty, and their man
agement is a subject of popular complaint
especially among the farmers. Freight
charges on the Australian railroads
are.Huch higher than on our Amerlca1
railroads. Ihe Australian colonial govern
ments have been obliged to place theil
roads in the hands OF commissioners, o.
general managers as we would styl,
them, inder endent of parliamentary con
troll. So that the Australian system Ii
really one of quasi-governmeptal manage
ment. In a word, the government has beeI
forced to relieve itself of the responsible
ties attaching to ownership.
But how absurd to compare these Austria
liam colonial railway systems-none o
them embracing more than 1900 miles O
railroad-with our magnificent railroad sys
tem, embracing 10000 miles of road, ant
80 differently conditioned.
4. The policy of governmental owner
ship and management of railroads prevails
in certain of the countries of Europe, bu
only as a military measure, and as q par
of the scheme of armament for the mainte
nance of the peace of Europe. Besides, Thu
avarana coct of rats,,,t,+,,n ~