Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1905-05-25
we'll informed business man an
understand.

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understand
Chicago, May 20, 1905. Professor
Hugo r. Meyer. assistant professor
of political economy in the Univer-
sity Of Chicago, and an authority
upon all questions pertaining to eco.
nomic conditions aboard, today said
there would be 20 further decline III
freight rates If the government
assumed the task of making rates.
Professor Meyer is especially we'll
qualified to talk upon this subject.
He spent twelve years in studying
questions of economy In Germany,
England, Austria Hungary, Australia
and Russia. He was also an instruc-
tor in Harvard Univerity for several
years. ..-
some of the results of the adoption
of the plan to have the government
fix railway rates, judging by the ex-
perience of foreign countries that
have tried it. would be to arrest the
natural decline in rates. said Profess
sor Meyer. ..s1: %.as :
"For the purpose of comparison"
continued Mr.. Meyer, IT shall point
out what followed the adoption Of
government control In Germany and
compare the situation in Germany
with that in the United States. In
the period from 1880, which we call
the first year of government owner
ship in Germany to 1899, the average
receipts per ton mile on the German
railways declined only fifteen per
cent and prices In Germany fell on
the average eighteen per cent, falling
more rapidly than the railway trans.
portation charges, which is to say
that the German railways did nothing
toward enabling the producer to ad-
just himself to the new level Of
prices.
"In the United States, however,
the succession of events has been
quite different. In the period be-
tween 1880 and 1899 railway rates de-
clIned forty-two per cent but prices
declined only twenty-five per cent,
the difference end the consequent ad-
vantage to the American producer
over the German producer being ap-
parent. The advantage to the Amer
ican producer relates into only to his
home q arket but to competition In
international markets and has placed
him in a position far more advan-
tageous than that of any foreign
country in which government owner
snip of railways results in the con-
trolling of rates.
''In France the conditions are
somewhat similar to those Of Ger
many. The advantages that might
accrue from the private ownership for
railways have been eliminated by the
governmental control of rates and
the history Of that country for the
same period has been marked by
similar arrest of the decline of rail.
way rates which resulted from con.
flict of interests. Neither France mol
Germany promote their industries as
do the people Of the United States
and In part this lack of enterprise is
due to the harassment resulting from
governmental control.
"It does not take a prophet to fore.
tell what would happen to American
industries should they be subjected tt
the influence of governmental contro
of railway rates in the future.
sit seems the world is not ole
enough to have learned that nations
should not weight themselves dowr
with Leedless burdens and in at
tempting to slove che industrial prob
lens which are..presented to them bl
each succeeding decade. To follow ii
the footsteps of these eminent Euro
pean failures in industrial problems
Is not a fitting course to be chosen b!
people as oglessive as those OF tn
United States. !" 1&
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