The representative. [volume] (St. Paul, Minn.) 1893-1901, 1897-03-24

WOuiu cudUlc UIic people OF Uuc ClUy TO
exchange their products for the pro-
ducts OF the farm, to the mutual adj
vantage OF all concerned. The inabili-
ty Of the different classes OF producers
to exchange their products with each
other, which is largely caused by high
rates of transportation and the long
distances Of shipment caused by con-
centration of population in large
cities, is largely the cause of What is
eroneously called 'overproduction,; .
but which ought to be called undercOn-
sumption.
There could be no such thing as un.
dercOnSumption if the means of pro-
duction and distribution were not
monopoliZed. Government ownership
Of railroads will destroy very largely
the monopoly OF distribution.
Another point. Railroads are cap
italzed for about eleven billions of
dollars, or 1868, 900 per mile. But they
are not worth TO exceed five billions.
If they remain in private hands the
people will have to pay the eleven bill
lions of debts. II the government Mt
buys the roads it will not pay tie II
billions for them, but only five billions,
people Of the United States from pay
ing six billions of dollars on watered
stock. Did any one act of Congress
save the people such an amount as
this? One-tenth OF all the wealth Of
the country.
Again the capital with which these
roads have been built has been bor-
rowed in Europe. Therefore SO long
as they are owned by private individ-
uals, the interest and dividends, to-
gether with its principal, will go to
Europe. Under public ownership
there would be no dividends, but in
terest on bonds would remain in this
country.
But it may be asked: If the govern
ment buys the roads even for tive bill
lions of dollars, how can it pay such an
enormous debt? That is the simplest t
thing in the world. l showed at the
commencement of this article that
public ownership would eliminate 662
millions Of dollars Of expenses every
year. In ten years the saving would
amount to $6,62o, ,OO9, 900.
Now the government can borrow
five billions of dollars with which to
buy the roads, at per cent interest.
The amount Of $4,000 600, 900 at , per
cent for ten years is just $6, 000, ,0O0 900.
Therefore under government owner.
ship this one item OF saving will pay
for the roads in ten years. Have the
people OF this country sense and cOur-
age enough to dc 1t? l believe they
will have in the near future-19Oo.
Now at the end Of ten years, when
the debt would be all paid aud we
would have no interest or principal to
pay, the G62 millions used to pay the
debt need not be charged and rates
could easily be reduced to one-fourth
what they now are. Can this be de-
MED?
The experience in other countries
proves that government ownership
would reduce rates Une- e-fourth. Ia
1889 the government roads Of Austro-
Hungary reduced rates to one-half
cent mile for passengers and one
half cent per ton mile for freight
and the traffic was four fold in 1890
81 ,25O,0 900 more. II Austro- Hungary
can maintain these rates why can not
we? In Germany the rate is III cents
a mile, and they make 50 per cent
profit on passenger business. In other
words they could reduce rates to one
half cent a mile and pay expenses. If
Germany can do this why can not We?
But we have proofs in our own coun-
try that passenger fares could be re.
duced to one-half cent mile The
New York, New Haven g. Hartford,
the Boston & Albany, the Pennsyl-
vania, Reading, Lehigh Valley, etc,
and other Eastern roads sell season
tickets now for about one-half cent a
mile and make good profit at that.
In England read carries passengers
from London to Manchester and back
at one-half cent Il mile, and make POO
per cent profit, showing that the cost