The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1905-10-04
GOVERNMENT OWNERSHIP.
Practical Illustration Of the Operation
Of Railways.

A recent statement by the Cana
dian Minister Of Railways and Canals,
Mr.. Emmerson, in the Dominion
House of Commons, indicates that the
experiment of governmental owner
ship and operation of railroads has
been a complete failure in Canada.
According to Mr.. Emmerson's state
ment. the Intercolonial railway, owned
and operated by the Canadian gov
ernment, was run during the past fis-
cal wear at a net loss Of about S2,OO0,-
600. and that amount will have to be
made good out of the revenues OF the
Dominion. imposing an additional bur
den on the taxpayers. Mr.. Emmer-
son was not able to express the hope
that deficits can be avoided in the fu-
tuce, but seemed to regard them as
inseparable from the governmental
management Of the line.
On account Of the similarity Of eco
nonlic conditions in Canada and in the
United States and of the advocacy Of
governmental ownership and opera
ton in this country. Mr.. Emmerson's
statement has unusual interest, espec-
ially in so far as it throws light on the
reasous why the Intercolonial Rail-
way aas failed to earn enough to pay
expenses. He attributed the deficit
in part to increased wage cost. Aside
from the question as TO the relative
efficiency Of labor on the government
road and on either lines, Mr.. Emmer-
son said:
"The very moment you increase, by
even a farthing, the wages of any o.
the employees, you have what is prac-
tically not a controllable element;
that is to say, it becomes a fixed
charge. You can never reduce. A
government railway never could
Mr.. Emr,erson has found that ths
compensation of government employ
es on the Intercolonial Railway, just
like the compensation Of government
employees generally, can be changed in
only one direction. Their compensa-
ton can be increased, but it can not
be cut down. That has certainly beer.
the experience in the United States
with all classes of public servants,
and there is no reason to believe that
employees. on government railways
would be an exception if the
policy advocated by Mr.. Bryan should
be adopted. In times Of depression.
when the earning capacity of men in
all lines OF business is curtailed, the
government employe alone is exempt.
There is neither any reduction in the
working force nor any scaling down
Of wages. This would be the condi-
ton on government railways. Traffic
might fall off and the general level OF
wages might be such as to warrant g
reduction II force and III wages, but
there would be neither on a govern
1nant line, and the wage cost Of oper-
anng it would be the same as in times
Of The greatest prosperity when the
line was working 70 the fullest capac-
ity. while the deficit to be made up by
the taxpayers would be swelled in
proportion. The government line
could not reduce freight charges in
such times for the reason that its
managers would be under obligations
to keep the deficit down to the lowest
possible level and they would have to
earn as much as possible on the de-
creased volume Of traffic.
Mr.. Enlmerson's statement illus
trates the tendency Of all transDorta-
ton charges made by a governmental
agency to become petrifed, whether
the government actually operates the
railway line or only prescribes the
charges. He said:
Z think !. can say frankly that there
is no subject upon which the people
are more sensitive than that Of in
creasing freight rates on govern
ment railway. From one end of the
railway TO the other, from the Sidneys
TO St. John, and from Halifax to Mon
treal. the very moment the suggestion
of an increase is made, that moment
you meet with opposition. That is
necessarily the outcome Of govern
nent operation of railways
This statement by Mr.. Emmerson is
of particular interest in connection
with the agitation in the United
States Of the proposal to give the In
tersiate Commerce Commission au-
thurity to prescribe transportation
charges. Where rates are made by
governmental authority it is next 10
impossible to advance them, even
though commercial conditions are