Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1897-04-08
GOVERNMENT OWNERSHIP.
FACTS AND FIGURES SHo "lNG
BENEFITS TO BE DERIVED.
How Government Ownership OF Rail-
roads W orkS In Other Couptriesi and
the Benz fits that Might be Derived ia
this COuhtry Under this System.

Omaha, July 4, 1892. That convention
drew up and promul gated to the worlt
a declaration of political principles
that will go down in history side by
side with the English Magma Charta
as one of the greatest political docu-
ments the human race has produced
In this and succeeding papers ! intend
to discuss its principal declarations.
In that document | find this concise
and emphatic statement; 1--WE de-
mand the government ownership and
operation of railroads. Would pub
lie ownership reduce the cost Of trans
portation? That it would reduce it to
one-fourth of the present rates is the
easiest thing in the world to prove.
Public ownership would save the peo-
pie 662 millions of dollars year, as
follows:
by abolishing 500 presi-
dents with their stats .S95, 900, 900
BY abolishing high priced
managers and their stats. 1000, 900
BY abolishing attorneys
and legal expenses. 1000, 900
4-Abolishing merely com
petitive offices solicitors. 10000 900
Establishing 5-7.hs of the
Advertising account. -. 6,OOO,O
G-Abolishing tariff associ-
atoms ........... 1000, 900
by exclusive use of short
estroutes .............. $4,000, 900
decentralization of depots
and offices. .,....,..,,.. 2O,OOQ,OOO
0-By uniformity of cars,
rails, machinery and other
incidental expenses of
competition .......... 1000. 600
lO-By avoiding strikes. 100000
1l-By abohshing cOrrup-
tion fund to influence leg
islation, etc ... ...... 10000, 900
19-By abolishing passes. 3O,OOO,OOO
19-Abolishing rebates and
commissions, ........... $4,000, 900
14-By haying no rent or
interest to pay. ......... 2SG, 600, 900
Establishing dividends, 100000
16--By turning surplus into
treasury ................ 52,OO0,0O0
Total savings. .......... SG69 900, 900
Now what part of the total in
come of the railroads are these So? mil
lions?
In 1894 the gross earnings were ST.
O74, OOO, 900; in 1895, little less 1891
(before the panic) 81, 100000, 900. 1
have no statistics later than 1895. 1t
will be seen that the saving of $685.
900, 900 is more than half of the total
income of the roads. If expenses are
reduced one-half cannot rates be re-
.luced one-half? Reducing passenger
and freight rates one-half would be an
inestimable blessing to the people Of
the United States.
Many farmers in the United sta ties
have no market for their butter, eggs,
poultry and vegetables, because trans
portation rates are so high that they
cannot be shipped to large centers of
population. And on the other hand
thousands of people in every city in
the United States are actually starving
for these products of the farm, but
cannot get them because of the high
rates of transportation. People in the
cities have manufactured articles for
which the farmers are suffering. Low
er rates of transportation would enable
the people of the city to exchange their
products for the products of the farm,
to the mutual advantage of all con-
cerned. The inability of the different
classes of producers to exchange their
products with each other, which is
largely caused by high transportation
and the long distances of shipment
caused by concentration of population
in large cities, is largely the cause of
what is enormously called ''over-pro-
duction, but which ought to be called
underconsumption.
There could by no such thing as UNI
derconsumption if the means of pro-
duction and distribution were not mo-
nopolized. Government ownership of
railroads will destroy very largely the
monopoly of distribution.
Another point. Railroads are cap
italized for about eleven billions of
dollars, or 1863, 600 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
buys the roads 1t will not pay the
eleven billions for them, but only five
billions, their actual worth. This will
save the people of the United States
from paying six billions of dollars on
.watered stock. Did any one act Of
congress save the people such an
annnnnt as this9 nne ienth of oil thn