The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1904-04-27
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STATE OWNERSHIP IN AUS
TRALIA.

u ,
suit of over-extention Of credit
for railway building and other
purposes. 1t will be remembered
also that this panic was worse
in New South Wales, where over
building OF railroads by the state
under pressure OF public demand
and their extravaganza operation
at the bidding Of labor unions to
furnish employment for every
body at high wages had exhaust
ed capital and strained credit
most seriously.
Since the creation of the Com
mOnwealth, all the states of Aus
tralia have been slowly strug-
Cling back out of panic condi-
tions by retrenchment in the
public service and economy in
operation OF public industries.
New South Wales, it appears, is
still in worse case of all, because
there the hold upon government
Of the socialist element that de-
n4ands spending Of public money
for the benefit Of the working
class is hardest to break. After
all economics, there was a deficit
OF 81, 100000 in the state rail
roads of New South Wales last
year, and the rapid increase in
the number OF state and munich
pal employees is regarded, in a re-
cent letter, as "a serious menace
to sound finance
1t appears that the principle
Of the state industry has been
extended also to municipal trans
portation in New South Wales,
with similar results. The city of
Sydney has taken possession of
the tramways, as it is proposed
that Chicago shall take posses
sion OF street car lines. Some of
the results are highly satisfac-
tory. Electricity has been in
stalled everywhere. The lines
have been literally extended in
the suburbs and the service is
said to be excellent. But the
financial results are dissappoint-
ing, in spite Of a reduction Of
working expenses per mile Of over
60 per cent.
Extensions have been made and
service has been improved; not
for business reasons but to meet
demand for bringing new resi-
dence property into the market
and to increase employment for
labor. The municipal govern
ment OF Sydney is entirely in the
hands Of the labor organizations
which dictate the management
Of the car lines. The fiscal result
is a deficiency Of 500, 900 in the
earning Of interest last year,
while no provision has been made
for a sinking fund. OF course
the property OF the city will have
to be taxed to makeup the deficit
in interest, and ultimately to pay
the enormous principal OF the
debt created to install the sys-
TEN.
At the other extreme we find
the old-fashioned cable system
of Melbourne in the neighboring
state of Victoria. This is owned
by a private company, whose
franchise has twelve years more
to run. The service is not as
good as in Sydney. The COM
pany hesitates to install electrici-
ty on SO sh ort a franchise, and
has left to subsidiary companies
the booming ofsuburban proper
ty by improbable lines Never
theless the company paid l. per
rent dividend last year. after
paying all it's interest and set
ting aside $125,OOO for reserve
and renewals. The happy mean
OF the best service that can be
given without running behind f.
financially may be found in Mel
beure when this franchise expires
either iii Il new franchise more
favorable to the city or in more
prudent municipal operation
than Observation-Disclosures
lis Tribune.