El Paso herald. (El Paso, Tex.) 1901-1931, 1910-08-20
MONARCHIAL SOCIALISM
IN THE GERMAN EMPIRE
XvI.-THE GERMAN ADVANCE.

the total income of the state. Scharz-
urg-Sonderhausen derives 80 per cent
of its total revenue from state-owned
farms and forests; Gutenberg pays %
percent of its bills in the same way;
MeckIenberg-Stre pays half of its
expenses in the same way; Bavaria pays
80 per cent, SaxOny 81 per cent and
Wurttemberg 80 per cent of all gov
ernmental expenses with revenue from
publicly owned properties.
Prussia the WealthIest.
Prussia, which has considerably more
than half of the population and area
of the empire, pays more than half of
ali its administrative expenses in this
way. The Prussian enterprises yield
4 constantly increasing revenue. last
year producing net profits of s176,-
900, 900. This was more than twice
as much as was collected by taxation,
the total tax receipts being a little
more than SS5 100000. In one year the
average income from state-owned prop
critics was $3.50 per capita, while the
per capita taxation was s2.15. In the
same year, owing to extension Of rail-
ways and other public works, Prussia
raised by loans a sum amounting 10
an average per capita of $3.50. Thus
in one year, the public properties pro-
duced a greater income than both
taxation and the sale of bonds. This,
1t Is important to remember, was in
Prussia where the people are almost
in open rebellion because of excessive
taxation If all the expenses of the
state had to be met by tax levies, the
result can be ina gined.
Railway Income Large.
In Prussia the S5ate-Owned railways
are the chief source of income. The
railways are now earning for the state
Il net profit of s150.0OO.0O0 a year,
which is a little more than per cert
on the total amount invested by Prus
STA in the state railway system, in
Guiding both what was spent in 1S4S
and 1S49, when the first Prussian rail-
ways were built, and what was expended
since 1880 in the purchase of privately
owned railways, the construction of
new lines and the reconstruction of
old ones. As this has been accom-
plished in connection with a gradual
and steady reduction of tariffs, there
is no opposition, in Germany at any
rate. to the principle of the state own
ership of railways. From its other en-
terprises. including forests, crown
land farms, mines, porcelain factories
and banks, Prussia makes a net annual
profit of about 27,000, 900.
In all Germany there is no public
owned enterprise which does not pay
a profit to the state. with the single
exception of steamship lines. The i'm
perial government does not expect to
receive 4 direct return from its subsf-
dies granted to the huge German ocean
steamship companies, and several OF
the individual states operate internal
navigation lines at a loss. But others
make a profit, so that the total an
nual loss for all Germany upon its I'M
profitable steamship lines reaches a
total ODl1-
Municipal Ownership.
In addition to these federal and state
owned properties. the German cities
nearly all are committed to the same
principle of collective ownership
Practically every German city owns
its street railways. its gas plant, It's
electric light and power works, its wa
ter works, Its slaughter houses, its
markets. it's cold storage plants, its
canals. docks and wharves More than
half of the cities also own and operate
amusement parks, beer gardens, thea
tres, moving picture shows, and other
concerns designed primarily to afford
cheap entertainment for the people
The cities as a rule make a profit
from their municipality owned enter
prises about equal TO what would be
considered a fair interest on the amount
Of actual capital invested.
This principle of operating publicly
owned enterprises for profit was out
lined by Bismarck when he took over
the privately owned railways. He said:
The SURPRISES which the states re-
ceive in the form Of net profits from
state-owned railways, or which go to
the shareholders in the form of divi-
dends in privately owned railways. are
really the taxation which the states
might impose upon the traffic by rea-
son of its privilege. but which, in the
case of private railways, falls to the
shareholders and not to society
The average German regards the
profits made ifrom state-owned bust
nesses as actually saving him that
much in taxes, since he believes that
II these concerns were privately own
ed they would collect as much money
or more. from him and his fellow Ger
mans as they now do. but that in that
case the dividends all would go TO the
stockholders and he would be exclud-
ed altogether from the benefits OF the
industry Now. he looks upon himself
as a stakeholder, receiving his divi-
dends in the form of RENTED taxation.
Next Article-DemOcratic Socialism
and Political Agitation.