New-York tribune., 1910-08-22
IRISH RAILWAYS
Failure of Private Enterprise
Salt Without SaVor.
London, August ~

Nca+ion of freight and terminal charges
and class rates on mileage baslS "ele
more radical than the new railway Ia"
in America. Legislation respecting the
RAILWAYS Of the kingdom has been easier
and less complex than in America. where
the states have regulated them on divers
theories and the federal government
has been brought in at subsequent
stage when the necessity for centrahzed
supervision was apparent Yet II wouid
be a. serious error TO assume tnat state
control in Great Britain and Ireland hdo
operated successfully in every respect
1t has offered adequate safeguards
against unfair discrimination or pretu-
dice against any description Of traffic
and any private or corporate interests
1t has not cheapened freight rates as
much as the business interests OF the
community have required; nor has It
provided every section Of the kingdom
with adequate traffic facilities
Ireland has been a notorious exception
to the widespread benefits Of railway
competition and government regulation.
The service has been so inadequate that
there mas Dee1 d StiOlAS ACOiA-AS AO- --~--
a century In favor Of national owner
ship Of railways. and this has found
expression in the majority report OF the
vfceregaI commission which has been
conducting a most exhaustive examina-
ton during the last four years. There
have been complaints, decade after dec
ade that the freight rates have been SO
high as to be prohibitive- Merchants in
the north have found it cheaper to send
goods to New York for transshipnnent
to Cork than to pay the high tolls by
land. Such shipments have been excep-
tional, but complaints of exorbitant
charges have been continuous
Apart from the excessive rates, the ser
vice Of trains has been irregular and
INADEQUATE: many stations in sparsely
populated districts have been closed be-
cause there was so meagre return for
keeping them open, and branch lines
have not been constructed in districts
which were cut off from access to mar
kets and ports. Private enterprise has
failed to develop the resources and TO
stimulate the activities Of the more re-
mote and backward sections Of the ISL
and. Gladstone considered seriously the
expediency of state purchase Of railways
when he was introducing his series of
reform measures. The viceregal com
mission has impaired a. fresh impulse TO
the movement.
When there were complaints Of Illegal
rebates and unfair Determinations the
railway commissioners could investi-
gate the grievances Of merchants. farm
ers and shippers and enforce the prin-
cipIes of the general traffic acts of 1854.
1873 and 1884. When there was neither
unjust prejudice nor Illegal preference.
and there were demands for lower
freight charges, 2 more trustworthy ser
vice of trains, an enlargement Of traffic
facilities and the construction of new
links and branch lines in the system,
there was no authority for forcing pri-
vate companies TO undertake business
at a loss. The reply of the managers
that the proposed traffic would not cover
expenses was decisive. So complete is
the failure Of small competing railways
to minister to the requirements Of thinly
populated sections that the commission
after examining about $50 witnesses has
reached the conclusion that cheaper
transit and increased facilities for pas
sengers and goods cannot be had with
out amalgamation Of railways. Half Z
century ago competition was the SOW
erefgn remedy. Let there be q much
private enterprise as possible without
prejudice or favor. and the rates Of traf-
fio would inevitably fall, Theorists and
economists are now singing on another
page Combinations. instead Of being
condemned as fatal to competition and
cheapness. are wanted as practical meas
ures for lowering the cost and innpro---
ing the conditions Of traffic
The recomm endsticns Of this COM
mission are practical evidencs that
state contraI and the unrestricted com
petition Of private railways Will not
suffice in every instance for meeting
the requirements of public interest. The
minority report stops short of govern
ment purchase. but strongly favors
anlalgamation Of existing railway lines
on terms arranged by arbltrators. and
if necessary with financial assistance
from the public treasury. The majority
Of the commissioners have no faith in
the policy Of encouraging voluntary
agreements for pooling business and
combining mana genents. They favor
either state purchase and administra-
ton Of the lines. as IN Germany. or
their acquisition by the Irish local
authorities after the state has guaran-
teed the interest on the capital re-
quired- Both the minority and the ma
jority insist upon tbs necessity for put
ting an end to ruinous competition and
differ mainly upon the expediency OF
making amalgamation voluntary or
compulsory. The wetghtiest argument Is
in favor of arming the government with
a controlling interest in the admins
tration of the lines, with or without the
assistance of advisory boards of direc-
tors.
The situation in Ireland IS exception
al. owing to the draining off of the pop-
ulation into foreign countries, the CON-
tinuous depression of agricultural and
interests and the ex-
haustton and impoverishment of the
country. The railway service has ytr
tually broken down in many sections OF