Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1905-05-23
GOVERNMENT RATE MAKING.
1t Would Stop the Decline Of Rates
Saws an Authority on the Subject.

It Would Stop the Decline Of Rates
Says an Authority on the Subject.
Professor Hugo r. Meyer, assistant
professor Of political economy in the
university Of Chicago, and an authori
ty upon all questions pertaining tt
economic, conditions abroad, said last
week there would be no further de
cline in 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 ques-
tons of economy in Germany, England,
Austria Hungary. Australia and Russia.
He was also an instructor in Harvard
university for several years.
Zone 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." and professor Meyer.
For the purpose of comparison"
continued Mr.. Meyer, 81 shall point
out what followed the adoption of gov
eminent control in Germany and COM
pare the situation in Germany with
that in the United States. In the
period from 1880, which we call the
first year of government ownership in
Germany to 1899, the average receipts
per ton mile on the German railways
declined only Is per cent and prices in
Germany fell on the average IS per
cent, falling more rapidly than the
railway transportation charges, which
is to say that the German railways
did nothing toward enabling the pro-
Queer to adjust himself to the new
level of prices. r.. ...
''In the United States, however, the
succession of events has been quite
different. In the period between 1880
and 1899 railway rates declined AZ
per cent but prices declined only Is
per cent, the difference and the con-
sequent advantage to the American
producer over the German producer
being apparent The advantage to the
American producer relates not only to
his home market but to competition in
markets and has placed
him in a position far more advantage
GUS than that Of any foreign country
in which government ownership of rail
Way6 results in the controlling of
rates.
in France the conditions are some
what similar to those. of Germany. The
advantages that might accrue from the
private ownership of railways have
been eliminated by the governmental
control of rates and the history of that
country for the same period has been
marked by a similar arrest Of the de-
cline Of railway rates which resulted
from conflict of interests. Neither
France nor Germany promote their in
dustries as do the people of the United
States and in part this lack of enter
prise is due to the harassment result
ing from governmental control.
1T does not take a prophet to fore
tell what would happen to American
Industries should they be subjected to
the influence of governmental con-
troll OF railway rates in the future.
It seems the world is not old enough
to have learned that nations should
not weight themselves down with
needless burdens and in attempting to
solve the Industrial problems which
are presented to them by each sue.
ceeding decade. To follow in the foot.
steps of these eminent European fail.
ures in industrial problems is not a
fitting course to be chosen by PEG
pie as progressive as those of the
United States