New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-19
STATE RAILROADS IN JAPAN

Japan presents striking contrast to her late
antagonist in the matter of railroads. In Rus
STA, as IS well known, Count Whites vast svs-
TEN Of state railroads has proved burdensome
a large and increasing deficit having TO be met
each year, and there has lately arisen a strong
movement-Which, however. is not likely TO
suCCeed-fOr the sale Of It to private corDOra-
tons. In Japan, on the other hand. railroads
generally are profitable, and the government
with popular approval. IS now about to DUR
chase all the private lines and thus to make
state ownership universal There Is. OF course
a striking contrast also in geographical condI-
tons. The $4,000 miles OF Russian railroads
are largely stretched across sparselv inhabited
plains, while the 4,5O0 miles Of Japan's are I'm
q densely populated country. 1t would be sur
prising if the former did-at present-and If the
latter did not pay.
There were last year open and in operation
In Japan 4,496 miles Of railroads, Of which tbe
state owned 1915 and private corporations 3151
miles. The plan now practically adopted is for
the state to acquire the privately owned roads
by purchase Such purchase IS to be effected
if necessary, by compulsion, on the principle of
eminent domain, and it is on that account that
Mr.. Kato, the Foreign Minister, has resigned
from the Cabinet He believes in state owner
ship Of the roads, but not I'm acquisition of
them by force. In general, however. the terms
just It viii pay the companies for their roads
the prospective profits Of twenty years, ascer-
tanned by multiplying by twenty the average
yearly profits OF the three years preceding the
Russian war.
This important transaction is to be effected
with Characteristic circumspecton. 1t will be
performed not all at once but gradually, so as
not seriously to disturb the markets. The COM
panies will be paid in bonds bearing interest
at g per cent and redeemable at the pleasure Of
the state within forty-ive years The net reve-
nues Of the roads viii be devoted to the nav
ment Of interest and redemption of the bonds
and it IS reckoned that such redemption will be
completed well within the forty-f1ve years stip-
ulated CIhe japanese government has never
yet failed to meet It's obligations on time and
has generally done SO ahead Of time1 After the
amortization Of the bonds 1t is estimated tbe
yearly revenue from the railroads to the stare
will be S27,5G00OO which Is about equal n
the gross receipts Of the roads at the present
time.
II IS not however with n view chiefly To
earning profits for the state that the roads are
to be acquired by the government The prin-
clpaI expectations are that expenses will be re-
duced and traffic facilities viii be enlarged and
improved and that thus industry and commerce.
VIII be promoted. Under state ownership and
operation Of all the roads there will be s,cb
systems OF through trains or cars and throupt
rates between all points would scarcely he
possible under diverse private ownerships Tho
experiment will be interesting and lnstr1c-
tive one both IN itself and also IN comparison
with tia similar though less complete state rail-