New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1894-11-21
Government Ownership Of Railroads.

IOWu -OT4OI'tIdte Id1ll OtuS, VIZ. SSolulll nd,
Great Britain and Ireland, Mexico, Para
quay, Peru, Spain, Switzerland. Turkey,
i United States and Uruguay. The fol-
lowing governments own and operate
some of the railways: Argentina, Austria
liza, Austria Hungary, Belgium, Brazil.
Canada, Cape Of Good Hope. Chile, Den
mark, France, Germany, Guatemala, In
dia, Japan, Norway, Portugal, Russia
and Sweden-eighteen. The following
governments own part of their railways,
but do not operate any, leasing all the
property: Greece, Holland and Italy
three. Though not claimed to be accur
ate, it is believed that the following sum-
mary represents an approximately cor
rect statement of the relations of the var
1ous governments to the railways Of the
world.
The relative rates charged for freight
and passenger service on the government
owned railroads and the facts cited in
connection with such railroads arc cal
culated to afford little encouragement 10
the advocates Of government ownership.
A comparison of passenger charges per
mile shows an average in Great Britain
of 4.42 cents for first class, $40 cents
for second class, and 1874 for third class.
In France the average IS 1856 cents for
first class, $50 for second class. and s09
cents for third class. In Germany the
rate is $40 cents for first class, 2.32 cents
for second class, and 1.54 cents for third
! class. In the United States the average
| charge is 2.12 cents. The average char
gcs per ton per mile are as follows: In
Great Britain, $50 cents; in France, $50
cents; in Germany, 1.64 cents, and in the
United States, cent.
The interest or capital invested in the
several countries is as follows: United
Kingdom, Al per cent; France, 3.S per
cent; Germany, 81 per cent; Russia, 53
per cent: Austria, per cent: Belgium.
4.6 per cent; United States, 81 per cent;
the world, 3.2 per cent.
The systems of operation of the rail-
roads in different countries is Indicated:
In Austria about 40 per cent of the rail-
way mileage is owned and about 81 per
cent is operated by the State. Upon the
expiration of charters, not exceeding
ninety years, the lines and lands of the
company revert to the government, but
the equipment remains the property OF
the private owners. Before railway is
opened it must be approved by the min
lister of commerce. The tariffs of the
State roads are fixed 10y the government;
they are subject to revision by the gov
eminent, and the government has power
to reduce rates if the earnings exceed Is
per cent on the capital.
For the year 1892 the operation of the
| government lines resulted in loss in
| Canada of over 100000. At the pres
ent date by far the largest portion (about
five -sixths) of the railway system is oper-
ated by private companies, each compa-
ny serving a definite territory and being
comparatively free from competition OF
other lines. But the railroad properties
are ultimately to become the property of
the government. This system is a mixed
one of State and private ownership. In
Germany nearly so per cent of the rail-
way mileage is owned by the govern
ment. Under the law the government is
required to manage the railways in the
interest of general traffic on single sys-
tenn. 1t may cause the construction and
equipment of roads and enforce uniform
traffic and police regulations. In Great
Britain and Ireland the government does
not own any of the railways. There are
stringent regulations provided by law
and administered by the railway commas
sion and board of trade.
Italy has tried both State and private
railroads, and has come to the conclusion
that it is not advantageous for the State
to own and operate railways. The re-
suit was reorganization ct the whole
railway systems. Under the present sys-
tenn private companies operate the State
roads under contract with the govern
ment. In Russia the government is stat
ed to own and operate about 10 per cent
of the railway mileage. Nearly all OF
the railways owned by private compa-
MES have received subsidies from the
government.
It is stated that in the United States
several of the States have tried owner
chin in a limited way Illinois cOnStruC-