Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-06-14
ENGLISH LIBERALS FOR !
GOVERNMENT OWNERSHIP

Special Correspondence OF The Star
LONDON. June 8, 1908
ID AILWAY naturalization is fast be-
X coming one Of the questions OF prac-
fical politics In England. Within .
very short time IL will probably become
| part Of the recognized program OF the
| liberal party.
Two Of the most influential ministers
have declared already for IT, They are
| Mr. Lloyd George. the new chancellor OF
the exchequer and the man who has the
undisphted reversion OF the premiership
after Mr.. Asquith. and Mr.. Winston
Churchill. the brilliant son of an Ameri-
can mother and the rising young man Of
| the liberal party. who has just been pro-
noted to the important cabinet Office Of
president OF the board OF trade. The
latest recruit to the policy is Sir John
Drummer. a great liberal business man.
who told the party plainly at its first
meeting after Mr. Asquiths appointment
| as prime minister that IL was doomed
unless II adopted CONSTRUCTION trade
policy" and abandoned the historic doc,
trine Of '.laissez faire'' In trade mat
ters
People Agree on Subject.
At first this declaration was hailed by
the unionist press as a warning by Sir
John in the cause of free trade. but he
| has since explained that what he means ID
not the adoption of protection against
foreign imports, but naturalization OF
| railways and canals and their manager
ment in the interest OF the traders and
the country.
Strange to say. there is little differ
ence Of opinion among the people al
large on the subject. Even those who
are afraid of the very name OF socialism,
are in favor of state. railways. The
railway shareholders themselves. who
have seen their profits dwindling and dis
appearing year by year, would be de,
lighted to have government bonds bearing
per cent interest as a substitute fof
their stock. which now pays an average
of only 3h per cent. The fact is thai
the English railways are amazingly over
capitalized. Accustomed as the American
Is to the watering of railway stock. he
| would be astonished at comparing the READ
value Of some of the leading English
railways with their capital value. The
total capitalization of the railways of the
United Kingdom is about 1880. 600 O00I
and it is estimated that at least $1,000
100000 of this is water. The water has
been put in with no fraudulent intention,
but Is the natural result OF the slipshod
| methods of management which grew up
with the English railway system and have
| never been altered.
Would Cost o,OOO, 600, 900.
1t is estimated that taking into account
| the extra sum. which would be demanded
by investors for disturbance" and the
natural premium that is to be expected
In such a transaction. the railways would
cost the government about $4,000. 600. 600 !
and the advocates declare that they could
be made not only helpful to the trade OF
the country. but also a valuable govern.
ment asset at that price.
A demand for immediate railway re-
form is made by every class of trader In
the community. The question of rates Is
great scandal and the preference given ,
by railways to foreigners has aroused .
1t costs SO to ship a ton of British meat
from Liverpool to London. but on ac-
count OF the rate agreements between the
railways and the steamship lines IL only
costs $6.25 to ship a ton OF foreign meat
between the same two points. A case
quoted extensively In the British press :
recently was that OF a manufacturer in
Sheffield who was asked to bid on an or :
der for a large quantity OF goods deliv-
cred in London in competition with a
German firm. He found that the freight
rate between Sheff1eld and London would !:
prevent him from obtaining the contract,
and he had almost decided to give up the
attempt to gain IT. when he learned that
IL he sent his goods by rail to Hull. ship :
ped them to Germany and brought them :
back to Hull and then sent them by train
to London, the cost would be so much ,
lower that he could compete with the
German manufacturers. He based his
price on these rates and obtained the
contract.
Government Could Reduce Rates.
II is estimated that If the government
took over the railways and ran them for .
the benefit Of the whole people money :
enough could be saved on management to :
reduce the freight and passenger rates :
substantially. and at the same time in =
sure a better service. railway manager :,
has declared that 100000 of the 6O0.0aO ,
men employed on the British railways are
totally unnecessary and are only en-
ployed because of the useless duplication !,
of facilities caused by competition. The
expense of go separate boards OF direc- ,
tors and of a host Of higher officials could
also be saved. +.
am informed that Mr.. Lloyd George
intends before long to move in parlia- =
ment for a royal commission to investl- 9,
gate the whole question OF the railways.
This is usually the first step taken by
a British government in preparing for
such radical change. royal commission
has been investigating the railway prob
lem in Ireland for some time and Is al
most prepared to report The evidence.
given before II both by traders and rail-
waymen has been altogether in favor of
naturalization. and there seems to be-
little doubt that the commission will,
recommend that the Irish railways should
be acquired by the state. II is quite pos
first place in which Great Britain will