The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-03-06

put fOrth BY Russians OF education ann
energy TO develop tho vast regions Of tire
meudoas resources that are inhahatsd
nv q great variety q races still clinging
tn Inshi@val Or To ssmi- Oriental habits.
Russia needs mOre railroads and h ready
10 give assurances tn capital that may
consider investment In them.
Italy. where 2.O0o years ago was the
supreme administrative ability % the
world. where 60 years ago were the cen
tres ~ finance aud commerce.. n nov
exospt the northern provinces. an inn
pOVerished land % the dolce far niente.
where neither the temperament Of the
people nor the climate IL conducive
tn the highest order Of organized effort
When the Kingdom " Italy was formed
10 found in the constituent States a num-
Der of heterogeneous and disconnected
railroad systems. The attempt co unity
and extend them Was q severe task for
q straitsnsd sxcbsquer. In its anxiety
TO assure the people that IL intended to
provide for their needs the Government
made many upfavorabls concessions.
some Of which 10 was later obliged 20 take
over Rnd complsts. After four alternate
periods % Government operation and
corporate operation the Government In
1905 in obodisooo TO growing popular
sentiment arranged TO take over the lines
again. and u n operating them at this
time. Tho proportion Of operating ex-
pensss 20 receipts increased from 90 per
cent in 1908 to "a per cent. in 1905. The
net revenue fell from SCOOPS 900 lire In
IeOs 20 5000 .O0O lire In IeOs. The Rail-
way Minister told tho writer that the
railways yielded about , per cont profit
TO the Government. From another and
authentic source IL was learned that in
its accounts the Government does not
charge tho railways With the cost Of the
existing plants.
In Swift xerlaud the sentiment OF the pso-
ple was at first adverse to the construction
and operation of railroads by the State.
Federal Capitalization was 90 much feared
that the granting OF CONCESSIONS was left
with the CIntons This division Of author
ity lod To friction and the placing OF gen.
eral questions concerning transportation
under the control OF the Federal Gov
eminent. Popular feeling in favor of
Governmental ownership and operation
developed and increased. Those holding
this belief POINTED out that the railroads. OF
adjoining countries had passed into the
hands Of the States. the action OF Germany
being especially cited, and they argued
that " these precedents were followed
tariffs could be reduced for the benefit
% commerce and the profits OF the lines
would accrue to the Government instead
Of to the private companies. which were
largely owned by foreign capital.
A law was finally passed authorizing
the Government purchase of the lines. and
two-thirds 20 the mileage 10 now owned
and operated ny the State. In 1901 n new
tariff was framed. adopting the lowest
rates that had b>en in effect on any road
TO apply over the entire State system. and
a draft was sent To the Swiss Commerce.
and Industry Association. the Swiss Trade
Association. the Swiss Peasants Union
and the Swiss Railway Union for recon-
mendations. Their Suggestions, which
promptly came. were largely of various
reductions in rates. which were complied
with az far as possible. the repurchase
law having enjoined that in the formation
og tariffs the interests Of Swiss commerce
have every consideration. Ia was 49,
timatsd that these reductions in the rates
would find more thaa compensation in the
increase Of traffic. The results of the FIRST
year or two seemed to carry out this sup
position. hut during the succeeding period
the net revenues have fallen on.
Under the State control salaries Of the
administrative officers have been reduced.
With the result that some OF the abl@st
men have left the railroad service. TO he
succeeded by fInctionaries Of inadequate
expsrience and ability who regard their
positions ~ Governmental Offices The
wages Of the rank and file % the service
have been increased. and there has been
an increase in the train service which has
added greatly to tho expenditure. The
result Of this policy IL found in the account
Of the United swiss Railways for 1905 which
showaan excess OF expenditure over income
of 81 $50 OOO. in the expenses being included
the interest upon the capital and the amor
tization. which the repurchase Law specifies
shall be completed in sixty years. That
10. in ten years railroads that under cor
porats operation we're fairly profitable
and prosperous have under the control
Of the state become a drain upon the tax
PAYERS This has happened in a country
40 small that there Is little or no conten-
ton and rivalry between one region and
another. where because 81 their high intel
hgsnce and patriotism the inhabitants
have maintained political organization
eminent by the people and for the people
In strong contrast with the situation
in Switzerland 10 that In Holland a country
Of approximately similar area hut 81
utterly different physical characteristics.
Switzerland - mountainous. and practi-
caIly all Of its transportation must 90 by
rail. Holland in large part lies below the
level Of the sea. and IL 80 permeated by
rivers and canals which for ages have
been the generally accepted means of
communication that it might not seem
there would be any need for railroads.
Yet there was need for railroads but their
develo pment for long years was a con-
tinuous struggle against adverse condi-
tions. The first line under State manage
ment speedily driftsd into hopeless in
efficiency Other lines built by private
capital barely maintained existence. The
Government finally took over the lines
in existence aud Duilt additional lines
L. ..,..~aaa hn-avar IN dfra~f n.,a..