Omaha daily bee., 1908-06-07
RAILROAD QUESTION ISSUE
Growing Sentiment in Favor of Ma.
tiOnaliEstion in England.
PARTY MUST WAKE UP SOON
Libera Leader Says 1T IL Doome
UnIess IL Resli.es the Inter-
est of the People in the
Matter.

LONDON. June Observation-Disclosures
naturalization is fast becoming one of the
questions of practical politics in England.
Within a very short time 1t 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 un-
disputed reversion OF the premiership after
Mr.. Asquith. and Mr.. Winston Churchill.
the brilliant son OF an American mother
and the rising young man OF the liberal
party. who has Just been promoted 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 It's first meeting after Mr.. AsquJth's ap-
pointment as prime minister, that 1t was
doomed unless II adopted a Construction
trade policy" and abandoned the historic
doctrine of '1aisses faire" In trade matters.
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 hat what he means is not the
adoption OF protection against foreign I'M
ports, but naturalization OF railways and
canals and their management In the interest
OF the traders ana the country.
People of One Mind.
Strange to say. there is little difference
Of opinion among the people at 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
dWindllng and disappearing year after year,
would be delighted to have government
bonds bearing 4 per cent interest as a sub
stitute for their stock. which now pays an
average of only 81 per cent. The fact is
that the English railways are amazingly
over-capitaliEed. Accustomed as the Amer
lean is to the watering OF railway stock,
he would be sstonished at comparing the
real value of some of the leading English
railways with their capital value. The
total capitalization of the railways OF the
United Kingdom is about Ss.5O0Ooo.0o and
II is estimated that at least a.ooo.OOO.Oo0 OF
this is water, The water has been put in
with no fraudulent intention, but Is IN
natural result OF the slipshod methods OF
management which grew up with the Eng
lish railway system and have never been
altered.
England was the pioneer in railway build
ing and the railways had to pay heavily at
the beginning to acquire the necessary land
for their lines and to overcome the opposi-
ton and the prejudices Of the land owners.
Furthermore, II has never been the custom
OF the English railways to set aside a part
of the profits for upkesp and improve
ments. When improvements have had 10
be made they have been paid for by new
stock issues.
Il is estimated that. taking into account
the extra sun 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 S10.Ooo,0Oo.O0o and the
advocates declare that they could be made
not only helpful to the trade OF the country
but a valuable government asset at that
price.
Immediate Railway RefOrm.
A demand for immediate railway reform
Is made by every class Of trader In the
community. The question OF rates is q
great scandal and the preference given By
railways to foreigners has aroused consid'
erably the traders For instance, II costI
SO 10 ship a ton OF British meat from Lv-
erpool to London. but on account of the
rate agreement between the railways and
the steamship lines Il only costs 68 "a
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 order for a large quantity OF
goods delivered In London In competition
with . German firm. He found hat the
freight rate between Sheffield and London
would prevent him from obtaining the con-
tract and h had almost decided 20 GVs