The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1894-10-04

As there are hundreds and hundreds
Of railroad operations in the country
chase. would be the most colossal ever
undertaken and would offer opportuni-
ties for peculation and private profit
that might well be considered irresist-
ible.
Interest on Purchase Bonds Would Amount
to More Than Net Earnings.
The lowest rate at which the govern.
ment has ever been able to issue its
bonds is 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.
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 OF
SIC, 0C0, 000,0 900, to an annual interes,
charge Of $500, 900, 900.
If the rate were higher than this, ard
there is every probability that it would
have to be raised to at least 5 per cent
the interest charged would be increased
to $500, 00o, 900.
According to Poor's Manual, the tota1
earnings Of all the railroads in the
country for the year 1893 from ever y
source, including the elevated roads III
cities, We're 81 1922, 61S, 800.
The operating expenses for the same
period were 1858, 027, 1871, leaving a ne,
balance Of total revenue over operating
expenses of $3.50, 591, 100. AN
1t will thus be seen that the fnancia
balance sheet of the last year shows &
net revenue insufficient by far to nay
the smallest interest charge within the
bounds Of probability upon the price
that the government would have to pay
for the roads.
National Operation of Railroads Is Ex
| pensive and Hazardous.
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 no,
be entered upon here at length, beins
reserved for a later article, in which thu
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 thar
private, and that the net proceeds Of
operation would therefore be less thar
the inadequate sum before mentioned
Every practical man knows, however
that no scheme of management would
be safe, prudent or possible that did mo-
set aside a 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 no
unsurmountable.
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 t.
those who use railroads as to those WIZ
own them.
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 ha.
been thought best to show that
No one has pointed out the way by which
the very first step towards such . chang,
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 tx
declare impossible of solution.