The San Francisco call., 1901-11-20
PUBLIC OWNERSHIP.

! TIME railroad combination recently effected has
! commanded approval in some quarters because
Il of its expected demonstration that the united
systems can be operated from one center and there
FORE that their operation in concentration by the Gov
ernment under public ownership, being possible, will
be desirable that their acquisition by the Govern
ment will follow.
AS we have said heretofore the evolution OF Ameri-
roads from the link to trunk lines and from trunk
lines to systems, secure convenience to their
patrons and economy in operation This economy,
OF course, reappeared in increased profit and this
divided with the patrons in the form OF cheaper
Take what is the New York Central system
illustration. In 1855 the links which now
pose charged average passenger rate Of 2 cents
per mile In 1899 the average rate over the same links
consolidated into system was 182 cents per mile.
The average passenger rate on the Central Pacific
in 1872 was 3.S3 cents per mile, and by 1897 the
Southern Pacific system Of which the Central had
become part, the average rate was 1904 cents per
mile
Describing the "nk" roads as the primitive and the
Systems" the improved method, the reduction in
freight rates resulting from the change the
New York Central 81 per cent Pennsylvania Central 80
per cent Milwaukee and St Paul 75 per cent Illinois
Central Is per cent, Southern Pacific O. per In
passenger rates the average in this country in 1893
1904 cents per mile, while the rate in Great Brit
ain for frst-class passengers 424 cents and for
third class cents, in France first class 4o4 Ger
many 3o3, Russia 3.65 Austria 3.85, Italy 363 Ho-
land 323, Belgium 242 per mile. This includes
the group affected by government ownership Of the
roads, and in them all the for secondclass passen
gers higher than our rsclass rate and in most Of
them the third-class rate is higher than average
In all OF the continental countries which and
operate government roads private corporations also
own and operate roads. Italy appointed commission
to report on government ownership in respect to its
economy compared with corporate ownership. That
commission reported that in the six countries, Aus
Hungary Germany, Belgium, Denmark Norway
and Sweden the ratio of expenses to earnings on gov
ernment roads was 900 and on private roads 500
per cent. So that in that group the of govern
ment operation exceeded private operation by 2o7
per cent.
The same commission reported that in France the
ratio of expense to earnings was, on government
roads SI.5, private roads 53.S; Germany $40 to
54.2; Netherlands, 500 to $40.
The Italian commission reported that: "The state
is essentially political institution which has for its
object the protection OF private rights and the pro-
motion of public good net the exercise OF industrial
pursuits that railroad management could be con-
sidered functions that the state should not or
could undertake that which should be left for the
citizens either alone or associated to do that it re-
strcted the field OF individual action and enterprise
social and political injury and tended to dnin-
'ish liberty"
Thereupon Italy diyested herself of railway manage
ment by turning the state roads to private par
ties and in three years the wages of the employees
were increased per and the ratio of expenses
to earnings decreased.
The Government statistcian of New South Wales
reports that in Australia the Government railroads
cost S6445o per mile while private lines operating in
the territory cost only $4,000 to $50 900 per
mile. The earnings Of the Government roads charg-
ing three four times the rates of the United States
3o2 per cent and the interest paid was 800 per
cent leaving annual deficit of 81 or nearly per
cent that was levied a general tax the people,
amounting to $56o7 o63, which they had to pay in ad-
dtion to railroad rates three to four times higher
than in the United States
These are authentic statistics and they prove be-
yond dispute that in the conduct of industrial en-
terprises government waste is equal to corporate
profit We have contended that if submitted to proper
accounting and actuary methods it would be demon
strated that the rule holds good in the munich
pal ownership and operation of such public utilities as
gas water and street railways. The same infrmty is
found to be common to strong autocratic govern
ments like Russia, bureaucratic systems like Germany
and qualified democracies like France and Australia
and there any reasons for anticipating anything
different under popular form of government they
are not yet proved