Daily capital journal. (Salem, Or.) 1896-1899, 1898-08-19
PUBLIC owNERsHp PROBLEM.


PUBLIC OWNERSHIP PROBLEM
Prussian state railroads have az
eraged ia recent years s75, ,0OO, 900, an
are expected In 1889 TO return 500
100000. AS Prussia has only 1856
miles OF railroad, this amounts to tai
ing SO, 800 mile OF net earnings. Th
very best our railroads can average /
good years like 1892 is s3,27s per mile
Even the Middle state railroads, wit
20,4Sl miles, in 1895 could only averag
81. 800 Of net earnings per mile. Th'
explanation lies in the fact tina
freight rates are higher In Prussi;
than in this country. III rates were
as low Ia Prussia as in this country
these ''profts" would vanish. These
profits" are .noJhing, iC fact, but d
tax IeYled on transportation and col
lected from the Industries OF Prussia
by keeping the rates on state roads
higher Than they would be under free
competition. Passenger rates are low
oyer their roads because of the great
density OF population. Freight rates
are high and form cruel tax On both
labor and capital, taxed to pay on the
capital invested by the state, often In
Improbable lines.-Oregonian.
The objection here made TO state
railroads is that they make a profit,
the conclusion being that they must
necessarily make IL by imposing a
'cruel tax on both labor and capital. I"
But it may with reason sbe asked, i,
what becomes of these profits? They
are converted into the public treasury
and serve TO tighten other taxes by
just that much. III the rates are
"higher on state roads than they
would be under free competition, It
isbecause the government prefers TO
raise revenue Ia that way instead OF
some other. The public as IA whole
pays the extra profit, and the public
as whole gets every dollar back In
lowering Of the rate OF taxation.
The money is taken from all the peo.
pie and given back TO all the people.
Under private ownership the profits
are taken from all the people ard
gwen TO a few individuals, TO have
and to hold for their very own. That
is the difference.
On the other hand, II the public
road runs behiud through too low
schedule OF freIghts aud fares, no one
looses; for the people as whole get
the benefit of the low rates, aud the
people as whole must make up the
deficit.
But how often do we see rates kept
iown by "free competition ?" When,
lnd only when, the railroads are tenn
unable to agree on pooling
arrangement. Ask California about
he blessings OF low rates brought
bout by "free competitions" Ask the I
,eople Of the Pacific northwest, any
where away from water navigation .as
oon as the new arrangement is per- I,
ected, which is foreshadowed In the
he following clipping from an ex-
hange.
The Northern Pacific, the Great 3
Northern and the Oregon Railway !.
navigation Company have been
Welded Into powerful, close and aR. II
ressive railway combination. With "
heir muin lines aud numerous ~
ranches they control the traffic OF :"
ne Pacific northwest. Their imam cl
iai control Is directed by great Ol
indicate OF foreign aud eastern cap. 10
!alists operating through J. Pierpont
iorgau, OF New York City. This vast
Ystem has entered upon a fixed pol.
" OF exactlng from the resources of
MS section the last dollar which d'
ne trafiic Will bear. IL has swal- tl
WED up the few Independent railroad vt
mes In this state, and stands TODAY a.
ith0ut competitive rail rival. "
aving thus laid Its grasp on the Ia. 81
lrtry and commerce OF this section. Il
viii stand aggressiyely against In
ate reduction OF freight rates and a.
res, and IL VIII oppose the opening w
ine columbia and Snake rivers 20 Is
le sea. IL Will strive 10 control th
ate legislatures aud members OF "a,
ngress, and IL successful, lt Will levy 49,
'arges upon traiiic which Will cur
the minimum the prolies OF our Co
fmersl miners, fruit growers, stock ln
en- and business men. ~,