Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-04-08
RAILWAYS OF JAPAN
Subject of Their Naturalization
Being Discussed.
Special cablegram to The Star.

AC3AACf Apih Tie SUBJECT Oh li46
| naturalization of the railways of Japan.
a subject In which Americans are interest
ed, is being discussed with intensity pro
and con. The subject has long been dis
! cUssed but It's magnitude has compelled
a postponement of an attempted solution
of the matter, nor is il clear just how Ja-
pan, with all of the burdens of the recent
war with China pressing down with al
most crushing financial weight is TO solve
the problem. According to the general plan
favored by the government however, the
state purchases all private railways at
fixed rate-nameiy. twenty times the aver
age profits of the three years preceding
the war, the treasury paying by means of
3 per cent bonds. which the companies are
to divide among the shareholders.
The objection has been urged that this
looks perilously like the public confecution
of private property, but the coun claim
is made that the greatest care Will be ex-
ercised TO carry out the measures slowly
and prudently in order to avoid affecting
the markets. A special account will be
created and all net revenues from the rail-
ways will be applied in payment or interest
and amortization charges. whereby the to-
tai amount of the bonds VIII be redeemed
within forty-fve years.
After the bonds have been redeemed the
annual revenue accruing 20 the state, it
has been estimated will reach $1,000 900.
1t is argued that the plan will promote
industry by economizng railway expenses
and improving traffic facilities. 1t IS gen
orally asserted In the japanese newspapers
that this plan was suggested by a great
foreign capitalist, Mr.. Hartman. who has
offered substantial assistance and advice.
Bitterness of Feeling.
Among the shareholders of some Of the
privately owned railroads there is consider
able bitterness of feeling because heavy
salaries have been paid high railway otlf
cials, and there has been some padding OF
pay rolls and stealing in connection with
contracts and franchises. The argument is
advanced that If the administration had
only been more economical the railway
profits on the three-year-average basis
would have been far larger and the amount
paid by the state in the event of The adop-
ton of the general scheme would be FAR
greater for each individual. some of the
shareholders are saying that they would
never have consented to the eXtravagances
of administration If they should have fore
seen this three-year- rule, and
much hard feeling has resulted.
Marquis Safonji, in explaining the meas
ure for the benefit of the Japanese press,
says that this naturalization of the lall-
ways in Japan and Korea is the most I'M
portant Of the measures which have come
up since the war. The nationalist ton OF
the railways of Japan has always been con-
templated by the government, but IT mas not
been regarded as practical up 10 this time
because of financial reasons. The marquis
explained that the state merely allowed
private citizens, FOR convenience's sake, 10
construct railways. After the Iioxer
troubles continued Marquis Saiontt, the In
tlcularly clear.
The prosperity of the country, he argued,
depended upon the efficiency of its COM
munications.
More Than Thirty Companies.
From Hokkaido to Kiushu, apart from the
the government lines. there were over thirty
private companies with a total mileage of
less than 1900, besides many other less i'm
portant systems scattered over the country.
There was no unity in freight charges,
and passenger transportation was slow and
behind the age. The marquis contends that
governmental control will do away with
these evils. But If these commercial argu-
ments were not convincing the marquis
contends there can be no debate about the
matter of the state eventually taking con-
troll because of military reasons. Even Mr.:
Kato, who has objected to the detailed
methods as partaking Of force, openly an
nounced that he approves of the theory of
the naturalization of railways. The men,
bers OF the various political parties appear
to agree when discussing the general prin-
ciples, but they split into many factions
and take many different points of view
when It comes down to the details of
financing the proposition, and taking over
the various lines.
Some of the opponents of Marquis Saionji
do not hesitate to say that the government
railroads are the worst managed in the
country, and that alfspugh they are COM
DDS of the private railroads they Ia reality
make very poor attempt. Then again the
actina of the government in fixing its own
price for the purchase of the lines is de-
cd asa; lrht q Iriu q rli iyUu
regime, IL is urged, worked splendidly dur
ing the late war, and the new program, 1t
is asserted, will only mean another monop-
oily added to those already working or
about to be inaugurated, namely matches,
tobacco, beer, camphor, salt and sugar.
Regarding Manchurian Trade.
A statement regarding Manchurian trade,
while not absolutely official is as near
official as almost any statement can be
made here in Japan. The statement says:
MANY foreigners have tried to enter Port
Arthur and Dalny from Yingkow and An
tung, but have failed because they are
ignorant and adopt the wrong procedure.
According to the latest Investigations
the number of residents is follows:
'Dalny-Chinese, $3.50; Japanese, 3,712;
foreigners 4.
Port Arthur-Chnese, 79,0iS; japanese,
/ ,1Gl: foreigners, 30.
'kinchau-Chinese. 2J3, 05S; Japanese 152:
foreigners, 10.
The Japanese residents at Dalny are
fast increasing, those at Port Arthur are
slightly decreasing The Japanese consist
of merchants, experts, fishermen, coolies
with some adventures. The Chinese are
mostly farmers
After lapse OF little time, when the
arrangement of affairs Is completed the
japanese government will open Port Ar
thur to all foreigners"
The claim is made that while Japan pro-
fesses the principles of the opens door her
own position of proximity gives her decided
advantages, and that by excluding for
eigners from Port Arthur and Daily the
Japanese will be able to establish them
selves.