Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-06-22
RAILWAY PROBLEM.
A QUESTION TO BE KEPT WHOLLY
OUT OF POLITICS.
The Objections to Government ownership
and Management Of Railroads in
This Country.
Washington Post, June 9. 1891,

conceive OF no proposition more reVOlu-
| tionary in its tendencies. But the question
| has been forced upon the public attention
| and it may be well to discuss it. In this
connection can only state few of the
more important facts bearing upon the
subject:
l. The opinions which have been eX-
pressed in favor of government ownership
and management of the railroads are all
characterized by failure to apprehend the
overshadowing 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 mana
gers of the country, either when acting sep
arately or in concert. Before the age OF
railroads each commercial city OF the coun-
try had trade area determined mainly by
its facilities for transportation by water.
Freight charges were then in each case de.
termined by the conditions of competition
which characterized such areas. But our
splendid railroad system has changed all
this. It has provided means of transport
tation vastly superior to water lines IN the
possibilities of collection and of distribu-
ton, and now constitutes one closely con-
nected system of transportation. Thus the
former segregated trade areas have been
broken up. At the same time the COM
mercial and industrial forces of the
whole country have been brought
into instant and intense competition
with each other. This struggle imposes
restraints upon freight charges which the
railroad manager is powerless to Withstand.
In fact, it has much more to do with the
determination OF freight charges, and es-
pecially relative rates, than any volitiOn
which it is possible for the railroad man.
ager or for any traffic association TO exer-
else. Under this Tightening grasp Of COM
petition freight charges have fallen on the
great trunk lines Of the country to half
hat ha1- ,y-arn oD1v thirtapu wears nCO
Government management Of the railroads
would clearly involve governmental de-
termination of the relative strength of the
commercial forces of the country In their
constant upheaval and evolution. The only
recourse from this hopeless task would be
general leveling process under horizontal
freight tariffs. But the people of this free
and enlightened country who carry on its
productive and commercial enterprises will
submit to no such despotic interference
with the course of the development OF their
industrial interests.
The value of the commodities moved over
the trunk railroads of the country annually
is four or five times the value Of the rail
roads, including both realty and equipment.
This alone indicates the overpowering in
fuence of commercial over transportation
forces.
Do not the foregoing facts clearly indicate
that the governmental management OF the
railroads would involve the governmental
management of commerce and industry
But what man in his senses would for
moment entertain such a proposition as
thisa
q 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
,ot Fowl tho fact that nriUofa cpnito1 and
enterprise have provided the railroads. and
the cars, and the train service. Besides,
a hard and fast leveling statute de-
termines what compensation the rail
roads shall receive for the transpor-
tation of the mails. Such power exercised
over the agricultural, the manufacturing or
the commercial interests of this country
would create a revolution within five years.
Besides, the cost of the postal service above
postal receipts during the last twenty
years amounts to So, 525,0 7S, an average
annual subvention Of $t,276, 753. This is
well on 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 operating
the railroads of the country is eleven times
that of conducting the ontire postal service.
What, then, would be the amount of taxa
ton which would be required in order to
subsidize the railroad system of the
United Statesa Why, we should be COM
PEELED to restore our war tariff and internal
taxation in order to meet the new demands
upon TIM public treasury.
3. Your correspondent infers the success
of governmental ownership and control of
the railroads of the United States from the
experiences of Australia. That assumption
does not bear the slightest touch of investi-
cation. The construction of railroads in
Australia failed as private enterprise.
Erhan oaah nf the five colonies tOnk
the matter up separately as govern
mental enterprises. The railroad sys-
tenn of each one Of these colonies has
a different gauge and therefore there is no
general Australian railway system. The
various lines have been so located as to
avoid competition. Railway competition on
the other hand is the predominant feature
of our American railroad system. The
railroads Of Australia are run almost with
out profit Their construction has been q
source of grave charges OF dishonesty,
and their management is a subject
of popular complaint, especially among the
farmers. Freight charges on the Australian
railroads are much higher than on our
American railroads. The Australion colo
NAL governments have been obliged to place
their roads in the hands of commissioners,
or general managers as we would style
them, independent Of parliamentary con-
troll. So that the Australian system is
really one of quasi-governmental manage
mep1ec In q word, the government has been
Z le6d to relieve itself of the responsible
ties attaching to ownership.
But how absurd to compare these Austria
liam colonial railway systems-none of
them embracing more than three thousand
miles of raIlroad-with our magnificent rail-
road system, embracing 1861 900 miles of
road, and so differently conditioned.
The policy of governmental ownership
and management of railroads prevails in
certain of the countries Of Europe, but only
as military measure, and as part Of the
scheme of armament for the maintenance of
the peace of Europe. Besides, the average
cost of transportation on European rail-
roads is nearly twice that on American
railroads, although the rates of wages
paid to employees are only about half the
rates paid in this country. The fact
that it requires three or four times as
many officers and laborers to operate gov
eminent railroad as are employed on rail-
roads operated by private capital explains
the greater cost of transportation on the
former Again, the facilities for railroad
transportation in Europe are not to be COM
pared with those privided on the railroads
Of the United States. These facts are pa
tent to the observation of every American
who has travelled in Europe.
5. The government of France has never
owned the railroads of that country, nor as
sumed their management or direction 90
cept in time Of war.
6. Italy tried the experiment of govern
mental ownership and management of
railroads, but it imposed too great
responsibility, as well as q financial