The representative., 1896-05-20
GOVERNMENT RAILWAYS.
Example of Prussia Cited for State
Ownership of the Pacific
Railways.

The proposition for an organization OF the
bankrupted Pacific railroads, the Union Pa
cific and Central Pacific, consist almost ex-
clusively Of plans for the reestablishment OF
private companies. The same corporations
which wrecked these roads, or similar ones,
are again to be favored by long extensions
of time, and by immense new donations IN
the form Of reductions Of the debts owed ny
the old roads to the government. Inere IS
private companies which allowed their roads
to be ruined and their directors to become
multi-millionaires be rewarded with new "a,
States should be subjected to the arbitrary
rule Of these private companies, which are
damaging the material development and un-
states. 1t is time that these roads are re-
organized In such a way that they may De
run In the interest and for the benent OF the
people who paid for them. This cannot be
done by again turning over these roads to
the tender mercies of private corporations.
are not able to administer the affairs Of
railroads. They try to make the people be-
lieve that the plan of government roaas is a
and popuiistic dreamers, while In reality the
system of government administrator is
stubborn fact and railroads of this charac-
ter have been operated for decades with
greatest financial success.
Prussia was the first country to introduce
the government railroad system. to the ex-
roads. and ITS influence has induced large
number of other states to adopt the same
system.
After the Prussian constitution of 1850 had
closed the revolutionary period of 1848 to
1850, the Prussan government directed its
attention TO the material interests OF the
people and commenced the government con-
struction of roads in those provinces which
were neglected by the private companies.
This was not for the purpose of making
money, but to develop the agricultural. COM
mercial and industrial interests Of these
sections. One of the main roads thus con
governmental administration was the great
eastern road, connecting Berlin and Koen--
igsburg. This action of the government
made all classes Of the people familiar with
the system of government roads and natur-
ally led to the idea that all roads should be
No actual progress in converting the Prus-
sian private roads into government ROADS
was made, however; until the me new paina parila
ed in 1873 commission for the investigation
of this railroad question. This commission.
cumstances, decided in favor of the system
of government roads, and this system was
recommended for adoption by all the Ger
proposed in 1876 governmental railroad
project for the empire, offering to sell the
prussian state railroads to the empire; but
the other German states, especially the So
size, the kingdoms of Saxony, Bavaria and
Wurtemburg, opposed and defeated this
nlan, because they were jealous of the grow
| ing power Of the empire and preferred to
| control their own railroads.
Not discouraged by Bismarcks failure in
this matter the Prussian government began
| in 1879 the work of introducing the system
| of government roads. The acquisition Of
private roads by the government was ac-
complished by voluntary sale and purchase.
| In purchasing railroads from private COM
panies the IT, acted fs with g great
| shares in 31k per cent interest bearing bonds
which had higher market value than had
| the shares. This made the shareholders
very willing to agree to the transaction. All
/ the railroad officials were also taken care of.
| their rights being reserved and the most Of
them being appointed officials in the state
| railroad service. The directors Of the pri-
| vate roads, if they were entitled to certain
| percentages Of the profits Of the roads, were
portion between government and private
roads was in the course Of fourteen years
! road were considerably augmented by the
| construction of new roads. On April l, 1879.
| the day of the last statement before the law
| Of 1879, there existed in Prussia:
y ' Kilometers.
Private railroads, managed by gov e'
Private ,e's roads managed by private '''''
| companies 9,43C
On % April iiii'ii l. 1893, Prussia had: ''' .'''''
| Government roads and private roads
| managed by government ............. "a. 436
Private roads managed by private COM
panies, not more than :. ............. Lie
Total ...... $50. ...............2 26, 15l
This shows clearly the progress Of the
| system of government roads April 1. 1893
| the government roads had also 50, $40 officials
| appointed for life and 191 679 other employees
besides those who keep the roads in repair
About one-third Of all the employees are ap-
| pointed for life and considerably more
| independent than any Of the officials Of the
private roads. Prussia's example was fol-
| lowed by the other German states. Ger.
| many had in 1874:
Kilometers
| Government roads 10, ST.
Private roads managed by government 2,93s
| Private roads managed by private COM
| pan1eS .......... l1,73
Total . Observation-Disclosures. .......... 25 4S,
| Germany had in 1894:
Government roads ...... ...... ...... 80, Is:
Private roads managed by government 81
Private roads managed by private
Total .. .... ...... ...... ........ 435O
| This mileage is equal to about 26 900 Eng
lish miles, or three times as much govern.
| ment road as it had in 1874.
| The Prussian finances were Of course, bur
| dened with great debt for the purchase OF
the old and the construction Of the new
| railroads, and some people who considered
themselves wise predicted great financia
| come and expense of the Prussian govern
| ment railroads from 1928 to 1894-95 Is com
prehensve. the figures given indicating mil
lion marks:
Total Total Net Ne
| In Ex- Earn Sur