The record-union., 1898-09-01
GOVERNMENT OWNERSHIP.
What Would be the Result as APP
piled to Railroads.

(San Francisco Call, August 3D.
Throughout most of its longitude the
fusion platform demands Governments
ownership of railroads, and much OF
its length is devoted to demanding, also
Government ownership of other busi-
ness enterprises, the net effect of which
would be to put the Government in con-
troll, as an employer, of a majority OF
the business of the country.
The argument for all this departure
from the past ways of the republic is
the cost of transportation. Mr.. Bryan
in his speech accepting the Presiden-
tial nomination in 1896 said that all
prices had declined except railroad
rates. That declaration seems to have
been the beginning of the present de-
mand for Government ownership OF
railways. In the recent Democratic
Populist Convention of Nebraska Sena-
tor Allen gave loud and long voice to
this demand. AS it is made and pu; in
issue in current politics, its basis, the
reason given for it, should be calmly
examined
AT the outset of such examination
1t is seen that Mr.. Bryan's statement
had no foundation in fact Whatever
fault may be found with present rates.
it is not true that they are the rates of
the past.
In 1897 the Pennsylvania Railroad re-
celVed $40 cents per ton per mile. In
1899 it received only 0.56 Of a cent per
ton per mile
The report of the Interstate Com
merce Commission shows the average
rate for freight and passenger trans
portation in the United States to have
declined as follows in the eight years
from 1888 to 1896:
1SSS-Fares, 2.349 cents per mile
1SSSSs-kreights, 1888 1001 cents per ton per mile.
1696-f ares, 2Ol9 cents per mile.
1o9o-trelghts, .SO6 cent per ton per mile
Between 1870 and 1895 freight rates
on all roads in the United States fell
81 per cent, and passenger rates fell
10 per cent. During the same period
wheat, corn, cotton, oats, barley, hemp
and tobacco fell an average of ID per
cent; food fell 1913 per cent and cloth
ing 2o.9 per cent. Taking groups OF
railway lines representing different Sec
tlons OF the country, the fall between
1872 and 1895 was:
Lake Shore and Michigan Southern
!. 81 .O0
Chicago and AltOn-FrOm 50 to Sc
Texas and Pacif1c-From 513 to Ill.
southern Pacihc-From 3.65 to 1926
Experience, not only in California,
but throughout the country, has shown
competition, and other elements inher-
ent in business laws and principles, to
be the real force in the fall and equal
ization Of rates, of which we have a
local example in the changed condition
OF rates from San Joaquin Valley
points since the construction of the
San Joaquin Valley Railroad. There
fore 1t is not politics that has effected
this decline in the cost of travel and
transportation in the United States. 1t
cost eleven billions of dollars to build
and equip the 10000 miles of railway
in this country. Do the fusionists pro-
pose to reach Government ownership
by buying those roads at that price ?
Or do they propose to duplicate them
at the less cost at which roads can
now be built? This less cost would
enable duplication of the system for,
say, six billions of dollars. Where do
they propose to get the money?
These propositions are made upon the
theory that Government ownership will
give cheaper service, and the roads of
France, Belgium; Germany, Austria
and Italy are cited as examples of sue
cessful government ownership and op-
GRAFTON. The latest reliable compari-