The mirror. (Stillwater, Minn.) 1894-1925, 1905-09-14

It seems almost impossible to draw
any conclusion between the German
roads and our own, as Germany can
offer nothing that equals our best,
neither can she show anything that
compares with Americas worst.
Probably the best way of looking at
the German railway service, is to ac-
the fact that it suits them.
They get just what they pay for, and
they have choice of tickets. A man
who uses twenty-five or fifty-cent
chair at home, or rides on board laid
across the top of his wagon box,
doesn't need a reclining chair for an
hour or two while on train.
At this point let us compare the
freight rates. The German fast freight
rates are twelve cents per ton per mile,
while ordinary freight rates are two
and one-fourth cents ton per mile.
Look at the tariff schedules of any OF
our roads and you will find these rates
doubled and often more AS to the
necessaries of life, such as sugar, tea,
coffee, manufactured lumber, ETC., you
will find that the rates on sugar are
the lowest, the rate being little over
five cents ton per mile.
THERE'S practically no use of drawing
comparisons until we get an answer to
the first question involved. We know
the amount of money invested in the
German roads and the returns, but we
are unable to state the amount in
vested in our roads. They claim
right to earn dividend on the actual
capital invested. 1t would be a hard
proposition to justify such action by
ordinary business methods or rules in
our country. Our roads figure on a
basis of capital stock and not on actu-
al paid in capital. If the German busi-
ness methods were in vogue in this
country probably a greater part of our
roads would have to be declared bank
rupt, because their bonded Indebted
ness is so far in excess of the capital
involved. With us, railroad stock
has no staple value, and is entirely in
the hands of a few expert operators.
Its rise and fall in value is not gov
erned by it's earning capacity, but rath-
er by the schemes of few men. To
illustrate this point: A few years ago
one hundred and forty dollars was con-
sidered a steep price for Northern
Pacific stock, yet in day and night
it went to a thousand dollars. Yester-
day the Lehigh's stock was quoted at
four hundred and eighty-fve dol
lars per share and no one really knows
the cause of the rise. Its dividend Of
eight per cent means eighty dollars on
a thousand.
! Government ownership is not neces-
sary with us, but change in railroad
business methods is, and it will have
to come. European countries are SUI
pervising the railroads and are making
a success of it, and if we cannot do
it, then we will have to admit that
government by the people and for the
people is failure, and few of us will
! be willing to admit that.
Did you ever consider the signifi-
canoe of road being placed in the
, hands of a receiver? 1t amounts to
{ this: the road through some cause or
{ other is facing ruin, and it is handed
over to the United States court, to
have that department of our govern
} ment place it on a safe business
/ footing once more.
/ Now if our government is capable
> of handling a bankrupt concern sue
. cessfully, could it not do far better
l job with one that was solvent? 1t
f certainly would do no harm to try the
experiment. R. II.