The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1894-10-04

Al there are hundreds and hundx0As
Of railroad corporations in the country
the business Of negotiating such pur.
chase would be the most colossal evel
undertaken and would offer opportuni,
ties for POPULATION and private proil
that might well be considered ilzesist.
ible. = ss5s5
.Intsress Q. P,rshass Beads Would Amou,,
to More Than Not Earnings.
The lowest rate at which the govern,
ment has ever been able to issue its
bonds is 4 per cent.
Some Of those already issued were
continued at as low rate as per cent,
but the lowest issue made during the
current year bears per cent. i
1t is not probable that the ten billion
dollars of bonds to be exchanged for
railroad properties would be accepted
at less than 4 per cent.
This would amount, ON capital 81
O,00O, 900, 900, to an annual interest
charge Of $500, 900, Ooo =" 4 II .z'g 55SSs5
If the rate were higher than this, ant3
there is every probability that it would
have to be raised to at least per cent,
the interest charged would be increased
to $500, 0,Oco.
According to Poor's Manual, the total
earnings of all the railroads in the
country for the year 1893 from every
source, including the elevated roads IS
cities, were $l,222, 61S, 800. b..
The operating expenses for the same
period were $S5S, 027, 1871, leaving net
balance of total revenue over operating
expenses Of 1864, 591, 100. -
1t will thus be seen that the financial
balance sheet Of the last year shows a
net revenue insufficient by far to pay
the smallest interest charge within the
bounds of probability upon the price
that the government would have tospay
for the roads. ;5
National Operation of Railroads Is Ex.
pensive and Hazardous. !4s
This estimate, too, involves the as
sumption that the railroads would be
operated as economically under public
as under private control. ,
A discussion Of that question will not
be entered upon here at length, being
reserved for later article, in which the
experience of other countries will be
quoted to cover the point conclusively.
1t may be said here that that expert.
ence shows uniformly that public man.
agement is much more expensive than
private, and that the net proceeds OF
operation would therefore be less than
the inadequate sum before mentioned.
Every practical man knows, however,
that no scheme of management would
be safe, prudent or possible that did not
set aside liberal percentage of earn
ings every year for repairs and better
ments, without which any railroad sys-
tenn would speedily fall into ruin. @@
The problem of acquiring the rail
road property of the country is there
fore seen to be unsurmounted, if not
unsurmOun table,
Arguments are yet to be advanced
against the proposition on the ground
of public policy.
The experience of all other countries
Of the world is yet to be quoted to show
that public control is as unfavorable to
those who use railroads as to those who
own them. II
But before entering upon these.
branches OF the great problem presented
by the universal demand of the Peoples
party that the railways should be owned
and operated by the government, it has
been thought best to show that Z
No one has pointed out the way by which
the very first step towards such a change
can be taken.
The acquisition of the roads by any
system short of actual plumber and con-
fscation involves a financial problem
which the figures above stated seem to
declare impossible of solution