Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-07-13
RAILROAD OWNERSHIP
Some Valuable Statistics Gathered by
the Interstate Commerce COM
mission.

In compliance with a resolution OF the
Senate. introduced by Senator Pettigrew.
the interstate commerce commission has
compiled some data regarding the owner
ship OF railroads by foreign governments.
1t appears that ten countries do not own
or operate railways, viz: Colombia, Great
Britain, Ireland. Mexico. Paraguay, Peru.
Spain, Switzerland. Turkey, United States
and Uruguay.
The following governments own and oper-
ate some Of the railways. viz: Argentina,
Australasia, Austria-Hungary, Belgium,
BRAZIL Canada, Cape of Good Hope. Chile,
Denmark, France, Germany, Guatemala,
India, Japan, Norway, Portugal Russia
and Sweden-eighteen.
The following governments own and oper-
ate practically all their railways, viz:
Egypt and Nicaragua-two.
The following governments own part OF
their railways, but do not operate any,
leasing all the present mileage to private
companies, viz: Greece, Holland and Italy
three.
Though not claimed to be accurate, it is
believed that the foregoing summary pre-
sents an approximately correct statement
of the relation of the various governments
to the railways of the world.
Not Favorable to Government Owner
ship.
According to the report the relative rates
charged for freight and passenger service
on the government owned railroads and the
other facts cited in connection with such
roads are calculated to afford little en-
enlargement to the advocates Of govern
ment ownership. comparison of passen-
ger charges per mile shows an average In
Great Britain of Az cents for first class,
30 cents for second class and 1.94 for
third class. In France the average Is 3.sS
cents for first class. 2-S6 for second class
and los cents for third class In Germany
the rate is 3.1O cents first class, 2.32 cents
second class and Lad cents third class. In
the United States the average charge is 2.l2
cents.
The average charges per ton per mile are
as follows: In Great Britain 80 cents; In
France 10 cents; in Germany 164 cents
and in the United States LOO cent.
The interest on capital invested In the
several countries is as follows: United
Kingdom Al per cent; France 3S per cent;
Germany 81 per cent; Russia 5.3 per cent;
Austria 81 per cent; Belgium 4.6 per cent;
United States 81 per cent. The world 3D.
per cent.
In Canada about one. tenth Of the total
mileage of about 1900 miles is owned and
CT ntrolled by the government. For the year
1S2 the operation of the government lines
resulted in a loss of over $GUoVO.
At the present date by far the larger por
ton about five-sixths) Of the French rail-
way system is operatd by private compa-
MES, each company serving definite terri
tory and being comparatively free from COM
petition Of other lines. But the railroad
properties are ultimately to become the
property Of the government. This system
is mixed one of state and private owner
ship.
In Germany nearly ninety per cent OF the
railway mileage is owned by the govern
ment. Under the law the government is re-
Qured to manage the railways in the inter-
general a single SVSrQm n
may cause the construction and equipment
of roads and enforce uniform traffic and po-
lice regulations. Even the few private rail-
ways are controlled by state boards.
The English System.
In Great Britain and Ireland the govern
ment does not own any Of the railways.
There are stringent regulations provided by
law and administered by the railway COM
mission and board of trade. New lines can
not be constructed without the sanction of
parliament.
The act of 1Si4 provides that the gov
eminent should have the right to acquire
any railroad constructed after its date by
purchasing the same for sum equal to
twenty-five years purchase of annual di-
visible profits. This law SO far as IL relates
to the government acquisition of railroads
has never been acted upon. Twenty-three
years later Gin lSJO a commission appoint
ed by the government TO report on the SUBJ
1ect stated: I'VE are Of the opinion that IL
is inexpedient at present to subvert the
policy which has hitherto been adopted OF
leaving the construction and management
of railways to free enterprise of the people
under such conditions as parliament may
think best to impose for the general well
fare Of the public
Italy has tried both state and private
railroads, and has come TO the conclusion
that IL is not advantageous for the state
to own and operate the Railways.
Experience in This Country.
In Russia the government is stated to own
and operate about forty per cent Of the rail-
way mileage. Nearly all Of the railways
owned by private companies have received
subsidies from the government.
1t is stated that in the United States sew
eral of the states have tried ownership in a
limited way. Illinois constructed a road at
cost of sl,0ooOoo. but disposed of it for
Slo,Wo; Indiana had similar experience:
Georgia owns a railroad, but found IL ex-
pedient 10 lease ii TO a private company:
pennsylvania constructed a railroad from
Philadelphia to Columbia, but subsequently
sold 1t; Massachusetts. Michigan and sew
eral other states tried the experiment With
out success.