The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1894-10-12

As there are hundreds and hundreds
Of railroad operations in the country
the business of negotiating such pur-
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
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 per cent.
This would amount, on capital of
$40, 1000, 900, 900, to an annual interest
charge of $500, 600, 900.
If the rate were higher than this, and
there is every probability that it would
have to be raised to at least per cent,
to $500, 100000.
According to Poor's Manual, the total
earnings of all the railroads in the
country for the year 1898 from every
source, including the elevated roads in
cities, were 81, 1872, 618, 800.
The operating expenses for the same
period were 1858, 027, 18l, leaving net
balance OF total revenue over operating
expenses Of 1864, sol, 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 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 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
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 to
those who use railroads as to those who
own them.
But before entering upon these
branches OF the great problem presented
by the universal demand of the People s
party that the railways should be owned
and operated by the government, it has
been thought best to show that
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-
fiscation involves a financial problem
which the figures above stated seem to
declare impossible of solution.