Omaha daily bee., 1896-04-25
RAILROADS IN PRUSSIA.
What Government Ownership Has Ac-
ComplIsheh Across the AtInntIc.

! that the plan Of government roads is a pro-
aucton OF the imagination OF soclalistic and
populistic dreamers, while in reality the sys-
tenn OF government administration is stub
| born fact and railroads OF this character
| have been operated for decades with greatest
| financial success.
Prussia was the first country to introduce
| the government railroad system, to the eX-
tent of excluding nearly all private railroads,
| 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 1S4S 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 Sec
| tons. One of the main roads thus con-
| structed by the government and run under
| governmental administration was the great
| eastern road, connecting Berlin and Koenigs-
| burg This action of the government made
| all classes OF the people familiar with the
| system Of government roads and naturally
| led to the idea that all roads should be
| owned and managed by the government. No
| actual progress in converting the Pruss'an
| private roads into government roads was
| made however, until the new Parliament OF
the young German empire appointed in 1873
| commission for the investigation OF this
| railroad question. This commission after a
| thorough investigation Of all circumstances,
| decided in favor Of the system of govern
| ment roads, and this system was recon-
mended for adoption by the whole German
| empire. In consequence, Bismarck proposed
| In 1876 a governmental railroad project for
| the empire offering to sell the Prussian state
railroads to the empire; but the other Ger
| man states especially the so-called middle
states" those of medium size, the kingdoms
of Saxony, Bavaria and Wurtemberg, OPP
posed and defeated this plan, because they
| were Jealous of the growing power of the
empire and preferred to control their own
railroads.
Not discouraged by Bismarck's 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 government acted with great
| liberality, giving near the face value of the
shares in 3l2 per cent interest-bearing bonds
which had a 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 as officials
in the state railroad service. The directors
of the private roads, IL they were entitled
to certain percentages of the profits made
by the roads, were indemnified. In this
way the relative proportion between govern
ment and private roads was in the course
of fourteen years thoroughly changed, and
tho miles of railroad were considerably
augmented by the construction of new roads
On April /, 1872 the day of the last state
ment before the law of 1879, there existed
Kilometers
Government railroads. 5255
Private railroads, managed by government 1852
Private roads managed by private COM -
panies 94@
Total .......................... IS 5s7
On April l. 1893, Prussia had:
Governm mt roads and private roads man -
Private roads managed by private compa-
nies, not more than..... LIS
Total .......................... &c l52
This shows clearly the progress of the sys-
TEN of government roads. April /, 1893, the
government roads had also $3.50 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 are considerably more
independent than any of the officials OF pri-
vate roads Prussia's example was followed
by other German states. Germany had in
1874
Ppivate raads MANAGED by government ...... 2's5S
Private roads managed by private com -,
panies
Total ,4S1
Germany had in 1894:
Government l9S
Private roads managed by government....... 5I1
Private roads managed by private COM
panies 500
Total '4S'V''
This mileage is equal to about $4,000 Eng
lsh miles, or three times as much govern
ment road as it had in 1874.
The Prussan finances, of course, were bur
denei 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 financial difficulties.
The following table of the income and ex
pense of the Prussian government railroads
from 1929 to 1S94-95 is comprehensive, the