The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-03-12
EXPERIMENT IN GOVERNMENT
OWNERSHIP.

During the past few years the world in
general has heard much of the economic
and social experiments in the Australian
colonies. and some reformers who have
been TO the trouble to go thither to study
them have predicted surprising results for
the human race. The problems of labor
and capital, they have told us, were being
worked out in that far-away section of the
globe entirely free from old world tradi-
tions in a manner that would force the
older world to change ancient methods.
One of these reforms was system of COM
pulsory arbitration, under which jurors
would fix the rate of wages. The plan
worked well so long as wages were eontinu-
ally advancing, but in more recent periods
business conditions have changed and
wages decreased because employers could
not pay the high figures and keep their in
dustries in operation. So it Is demonstrated
I'm New Zealand, as well as in the older
world. that wages must have some relation
to the cost of the article which labor pro-
duces. 1t does not seem possible that any
one but an unbalanced theorist could be-
| lieve that wages could be fixed by outside
parties in sympathy with either labor or
capital.
In several of the Australian colonies the
government has undertaken a great many
classes of service which in other parts of
the world are left to individuals or to cor
porations. In Victoria and New South
Wales the railroads have been built and
are operated by the government. The ex-
perimcnts in railroading N those colonies
will not win converts for nose who are ad-
| vocating the ownership and operation OF
railroads in this country by government.
| The average cost of railroads per mile in
| this country in 1900 was $61, 400. The highest
cost per mile was $4,000. in New York.
| Pennsylvania. New Jersey and Maryland.
while in the South and Northwest it is
81, 700 to $i7,0s7 per mile. The opinion pre-
walls that such a capitalization per mile
carries more or less water. Nevertheless,
| in Australia, where land damages should
| be light, the average cost per mile for con-
| struction is more than the average Of the
| United States. That is, 1t costs govern
ment so much more TO build railroads that,
| with all the water in the capitalization.
corporations can build them cheaper per
mile in the United States than can govern
| ment in Australia.
| The Australian railroads are operated at
| a serious annual loss, which some time the
people must make good. either by increas-
| ing the rate of taxation or cutting the ex-
penses. 1t is said the people will do neither.
When 1t was proposed to reduce the wages
| of employees there was something like a
| general strike, and the effort was aban-
doned. 1t Is difficult to increase taxes al
| ready high, and recourse may be had to
| borrowing. When ii comes to borrowing
| the Australian colonists, less than four mil
| lion. have public debts aggregating nearly
as much as the debt of the United States.
| In fact, no people in the world has been
more lavish in creating a public debt by
| borrowing than the Inhabitants of Austria
| liza, where government tries to do so much
| To-day most of the Australian colonies
| have negotiated so large debts that 1t Is
with the greatest difficulty they can pay
| the interest. In time the governments may
repIdiate the debt or declare their insolven-
cy. Such are the object lessons thus far of
/ socialism in government. 1t scarcely needs
| be added that they are not of a character
20 win converts among sensible people