The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-21
STATE MADE RATES IN FRANCE
,vRKyOH RAILROAD EXPERT
TELLS OF THEIR EVILS.
(p.mpanics and the Public Alike Suffer
! BECAUSE the Government Rogulates
tho Charges-Enecto OF Rsaltics In FIX.
ing Rates-Amer0An System Best.


n.oause the Government Regulates
tho Charges-Enect OF Politics In FIX.
: ing Rstes-Amer1oAn System Best.
WARRINGTON; May 7o.-Of all foreign
. countries that have tried railway regulation
Nv Government authority. tho ono IN which
the situation u most useful for comparison
with the United States y France.
In France the railways are not owned
Nv tho Government, but railway rates are
a1ed by governmental authority, a. has
been proposed for the United States. M
Emile Heu1teau, president OF the Orleans
railway and one OF the foremost railway
administrations Of France, who oamS hero
"a a delegate to the International Railway
congress gave an interview before leaving
Washington to-day In which he explained
the working Of railway regulation In his
country.
'The maximum charges which The rail-
WAYS OF France may mako for carrying
merchandise said M. Heurtsau. ARE fixed
by contract made by each company with
tho Government. this contract being In
effect the oompany's charter. Tho Gov
eminent designates the exact course along
which roads shall be built, In some cases
laying it through territory which would
not be profitable for private management
to operate in without some sort Of sub
vention.
This eubvention the State gives in the
form Of an advance or loan, on which the
company must pay per cent. interest
and which must be returned within a spool
fed period. During that period the COM
pany may not declare dividends above a
axed figure, the surplus that might other
wise 70 to dividends being used In reducing
the loan.
AT the end OF the specified term; usually
pinety-nine Year,, the railroad becomes
the property OF the State outright, except
for It's rolling stock. on which the Govern
nent holds lien, to guarantee the payment
Of any Of the advance remaining unpaid at
that time.
This makes possible; you see, the build
ing OF railroads in places who're the Govern
ment restrictions would otherwise make it
impossible. Naturally, 1t Is the taxpayer
the merchant and shipper who think they
are getting 80 much benefit from tho States
Interference in the railroad business-who
pays for all these things.
1T is the taxpayer-the merchant and
the shipper-who pays for the oonstruc-
ton and maintenance Of canals and canal
lied rivers-the latter natural water courses
artiAcially deepened or straightened-which
h Some places make the existence Of a
profitable railroad almost impossible, and
IN others oentrLizs industry and traffic
TO the detriment Of sections Of the country
that do not have similar advantages.
There Is no provision at all for the States
regulating charges for water transports-
ton. The waterways are. IN tha eye Of the
law. public highways. The vessei owner
may charge - much as he pleases for the
services he gives, and inasmuch a. 1t costs
him much lees 10 render than like service
costa the railway, he can depress his rates
and raise them With impunity, so as seri-
o,Hly to Affect the trend and movement Of
trafnc.
This 10 not. however, competition In tho
true sense. 1t produces such results a.
these:
In the region north Of Paris, which 10
tho great industrial section Of France, a
very large proportion Of the traffic is carried
by canals, which you abandoned long ago
IN this country as out Of date. which are slow
and subject to all manner OF hindrances,
from the necessity Of repair, tho jam Of ice
in winter, and what not. In southern
France a very largo share Of the freight
between Marseilles and Paris, for example,
moving In either direction, goes around the
coast line instead Of directly by rail.
You can easily sec the effect Of this
Tho people are practically deprived Of the
moro efficient means OF transportation in
the interests OF the less efficient. This
would, OF course, mean much more In the
United States than 1t does In France even,
for your great middle West, especially.
What, you ask, Ia the cause Of this? 1t 10
that tho Government will not allow the
making Of railroad rates that will take the
traffic Of the canals, and its refusal to allow
this Is due to political pressure sometimes,
to the Jealousy OF one community toward
vessel owners to whom the present arrange
ment Is Of such vast financial benefit. to
the difficulty Of ever getting a govern
mental machine to reverse its action or to
modify its mechanical methods.
The inelasticity that government owner
ship or close government supervision in
variably brings makes 1t impossible that
French railroad rates should 20 below tho
point at which the boats on the waterways
do business.
Not only does the Government never
give its consent to the raising Of rates, az
might be expected, but also, Extraordinary
AZ it may seem to Americans who have had
no experience with governmental control of
such things, 1t frequently withholds its con-
sent from lowering them. Our only pro-
lection that our cont racts with the overn-
ment have fixed maximum charges 30 long
as the PRESENT agreements are in force.
we would be only too glad to adopt the
American system OF fixing the lowest
rates proper and making up the loss Of profit
on each shipment out OF the increased vol
a business they make the railways avail
able to, which is the only economically
and commercially right and sensible way
OF doing We would be glad to build up our
territory as the American railways do, by
encouraging its indust ries, by opening its
markets, by enabling 1t to compete with
Their territory contributing to the same
markets.
But we cannot do that Tho State con-
lrolled rates prevent it, however strong
our desire r the peoples may be.
The basis on which freight rates are
made IN France is generally that Of distance
IN fat, it is impossible that any Govern
merit or Government commission should
nate rates on any other basis.
This tape measure basis IL the easiest
TO letpp6 auaipaf charoo.o ~ 1tooVi in