The mirror. (Stillwater, Minn.) 1894-1925, 1905-09-14
German Railroads.
Paper Read Before the ChautattQud Circle.
"O ONE who has grown weary of
assertions, and begins to look
for facts on which he NAV haSa

NJ ON Il VINO has grown weary OF
assertions, and begins to look
for facts on which he may base
an opinion, Germany offers the
best field for the study of government
ownership of railroads. There, side by
side, and under practically the same
one can view the workings
of the two systems. He can witness the
steady growth and prosperity of the
state roads and at the same time see
the rapid decline of those under pri-
vate control.
The increase of the holdings of the
state roads has not been brought about
by confiscatiOn or by unfair means.
The government offered the private
companies cash for their property, |
which was accepted in the, majority of
cases, and today the German govern
ment owns ten-elevenths of the mile
age of the empire.
To buy these roads the government
borrowed the money in the open mar
kets at three and half per cent inter-
est. The profits of the road have never
dropped below four and half per cent,
and during the last ten years the earn
ings have been seven per cent. Figur-
ing on the basis of borrowing money
at three and half per cent ID max
ing it earn seven per cent, the surplus
earnings will pay the principle in
twenty-elght and one-half years; or. in
other words, the roads will pay for
themselves in less than twenty-nine
years. From standpoint of an in
vestment, it certainly appears to one
as safe business proposition.
The mileage under private control
fell from twenty thousand miles to
about four thousand during the last
few years.
The largest returns of the private
road were made in 1869, the roads earn
ing SIX and half per cent, but at the
present time they are earning only
three and half per cent. This means
that the railroads under government
management are earning just double
the amount earned by private roads.
To review the disposal of these lar
ger earnings, and their relations to the
welfare of the people, gives one con-
siderable matter for thought. The gov
ernment of Prussia, in the first place,
has a state debt of nearly two billion
dollars. The earnings of the state
railroads pay the interest on this debt,
provide for its payment, take care of
all improvements and extensions and
still there is left $26O,OOO,OOO yearly.
Another question that interests
Americans at this time, is the cost per
mile. In Germany, on her total mile
age, there is debt of sixty-two thou
sand dollars per mile. You can see by
this, then, that there is but one trunk
line in the United States whose bonded
Indebtedness does not exceed this
amount. Then, too, they have been
given the right of way; that in itself
is almost as large as Prussia. Besides
this, cities, towns and villages have
given them bonuses that amount in the
T aggregate to hundreds of millions Of
dollars. In Germany the cost of right OF
l way for extensions amounts to ter
thousand dollars per mile.
The next point to consider is the
rates in force. Some one has said thai
4 the Germans have their money stoleI
: out of one pocket and put back in thu
S other. In the matter of rates tht
I Americans have their money taker
l from all their pockets with no sign O.
g any return.
In Germany there are four classes il
9 the passenger service. The fare pc
d mile, first class is four and three
f fourths cents; second class, a little les
l. than three cents; third class, about on
l. and three-fourths cents, while tn
d fourth class is one and fourth cents
l. Considering our rates they range fror
d two and half cents per mile il
r some parts of the East to nine cent
d per mile in portions of the West, or
n probable average of three and half t
,e four cents.
ID In Germany they make profit o
,e their passenger rates, while with us
is universally believed that our passer
ger service is operated at loss.
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