New-York tribune., 1908-02-23
DEPRESSION IN JAPAN
FINANCE AND RAILWAYS.
Opposition to Governments Control
of Lines Increases.

Toxic Feb o2-One of the conditions under
which the present Saionji Ministry succeeded
the Katsura administration at the close OF the
war with Russia that 1t should carry INTO
effect the policy of government railways. Inc
pledge was fulfilled, and the undertaking con-
stitutes al present not the least Of the many
difficult financial and economic problems with
which the rulers of Japan are confronted as the
results, direct indirect, of the war.
The grounds which the authorities hased
their determination 10 take charge of so vast
branch of national activity were for the most
part strategcal rather than economic. and no
secret has been made of the fact that the mill
tary power was mainly responsible for the plan
Still the advantages to the public from central
ownership of the railroads had conslderapie
prominence The national ownership plan' III
brief was that the government should purchase
seventeen private lines at an estimated cost OF
442 900 900 yen in round figures Ihe more
i,,nortant of these lines were the Nippon Rail-
way, assessed at 3G,J36,46l yen; the sanyo
Railway. ~ 714S720 yen; the Kwansai Railway
81. .3OS 0G0 yen, and the Hekkaido Railway 90
O50 501 yen. the remaining railroads ranging IN
nrice from 100000 yen to 10,GO,0OO yen. In
1ia,, of cash the government decided to pay Tor
these prouertiee in national Bonds at the latter
face value within five years, interest on tLe
railway shares being paid by the government IN
the interim The proposal passed the Diet
Since the abolition of the plan several OF the
estimates have had to be revised ana Tue
amount in bonds now to be appropriated lot til7
purpose is believed to be about 7co'oSo'Ooo yen
ir rourd figures. The yen Is worth approx
mately 30 cents.
Opponents of the policy of government owner
ship including many prominent financlers' GO
NOT hesitate 10 ascribe TO it large share OF the
resnonsibilitv for the persistent economic de-
rresston which afffi6ts the country. Ihe gov
ernment itself early realized that any suoue1
durpng of so large a block OF bondS Oh tlle
market would almost inevitably nVolNe NIoei-'
downward movements and hoped 10 escape '''s
danger by gradually effecting the eHchdhse u
bonds for railway shares Whether due 10 ar
ticination or otherwise-since up to the present
no payments have been made-the laot u '-'0
sudden stagnation cannot be denied.
Another criticism. which nowadays is CROWNS
,,ore and more frequent is that the govern
vent co far from fulfilling its promise to i'm
,~o,-o tranenortatfOn facilities has actually al
lowed them to deteriorate. The congestion Oh
Goods 81 stations is said to be unprecedehleu
and only a few weeks ago the head p1 an I'M
,,ortant foreign firm wrote to local paper cum
rIaining that il took several weeks 10 Ioi va "
their consignments, either by land OF "S'lei'
from, Osaka to Toxic distance OF shghtiy more
than three hundred miles IN oeIe"oe 'ii9
authorities say that the summer hooos anu
storms. which destroyed many miles Oh 'racA
and en7bankments disorganzed the Work OF tile
danartrnent OF communications and the rali"aS
bureau, and that all these defects VIII De rem
edied. %
The recent political crisis was laTseIy '''e o1
- 20 tho Government ownership question
which will continue tc be serious problem III
1,,o, rro,.ahlv for years Doubtless de-
+a-rninAd effort will be made in the near 1uVuIe
- 6nd some way out of the maze OF dlfhcuitles
i-h which the government has surrounded
itself Already hnanciers and practical railroad
men are discussing methods by which the gov
eminent can relieve itself of some Of its hnahciAl
,,,-dars Il is too early to say that government
r,,,rership is either success or failure out at
rresent a popular vote would propaoiy manu- '-i7
rs;1rav lines back to private companies