The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917, 1911-06-09
Professor Says
People Should
Own Railroads
Railroads Themselves Soon
May Favor, Declares Prof.
Frank III. Dixon

New haven, June 9-'PhaSeS of re-
cent railroad legislation" was the SUBJ
ject of an address in which Prof
Frank H. Dixon Of Dartmouth College,
Tuck school Of administration and
finance at the Board of Trade lunch
con recently stated that the country
Is on the direct road to government
ownership Of railroads. Railroads
themselves will probably eventually IA
vor the movement, 1t was stated, be-
ing more and more pressed by the de-
mands for higher wages on the part
of employees and lower rates with bet
ter service on the part Of the public.
Investors are even now holding aloof
from railroad investment, and the peo-
pie as they gain confidence in them
selves are losing confidence in the
beneficence of private control and
operation of public-service corpora
tions, it was stated. Prof Dixon is
an authority on economic subjects and
has been instrumental in making the
Tuck school a source Of supply for
men of administrative ability.
Prof. Dixon's address in part fol-
lows:
1t is my firm belief that we are on
the direct road to government owner
ship of railways. We should only be
lOllOWlIlS III TIE lOOISlopS or OCn0r nd
lions If we adopted the policy. Note
for example, as the record Of the last
few years, the purchase by France Of
the Western railway, which will be
followed soon by the purchase of 9TH
ers, of the West of Flanders railway
of Belgium, Of the railways of japan
and Switzerland, Of many of the pri-
yate lines in Austria, and the re-
sumption Of State operation in Italy.
Mr.. Acworth, an authority on English
railways, declares that everything in
England is making for railway ma
tionalization.
Political unity, social betterment, in
dustrial progress, financial gain-all
have been influential motives. The
great social democratic movement
which is sweeping England and is
typified in the extraordinary proposal
of the chancellor of the exchequer for
insurance against sickness and unem-
ployment, Is gaining rapid Roadway in
this country. The people are gain
ing in confidence in themselves at the
same time that they are losing con-
fidence in the beneficence Of private
control and operation of public-ser-
vice corporations Control is a germ
which feeds upon itself. The more
regulative power the people acquire
the more they want, and the more
confident they become that they can
reach.
Constantly lower rates, more eff
ficient and a more widely distributed
service, greater safety in operation, an
absolute elimination of all rebates,
Determinations and preferences Of
every description, the end Of the
graft that comes with the association
of railways and supply houses, the
resurrection of water transportation
lines, more courteous treatment from
officials and empfOyes-and "a, host of
other advantages and dellghts-all
these are to come from ownership and
operation by the government. 1t is
unnecessary to pause and argue as to
the advantages and disadvantages Of
railway naturalization. The tide is
too strong; it may be checked for a
season, and then again it may burst
over us in a night. Those who want
it-and they have the power to get lit
eventually-are deaf to the reasoning
of those who would show it's dangers
and its Representatives,.
I should not be surprised to find the
movement favored sooner or later by
the railways themselves. The de-
mands made upon them, frequently so
inconsistent in character, may become
too great to longer complied with.
There is sharp difference Of opinion
as to whether federal regulation has
or has not affected railway credit adj
versely. I am inclined to think that
some of the railways have overeesti-
mated the influence Of the Interstate
commerce commission in this respect.
But it is clear, nevertheless, that rail-
way securities are not as attractive to
investors as they were a decade ago.
With this increasing difficulty in Sc
curing funds goes the absolute neces-
sity that such funds shall be secured.
have had an estimate prepared of the
capital necessary to provide the pop
ulation of 1920 with the railway facili-
ties merely which it had today, max
ing no allowance for any improve
ments in service of any kind whatever.
This estimate Is based on the assump-
ton that the population will continue
to grow at the same rte as during the
last decade.
This rough estimate, which 1 have
made as conservative as possible, calls
for an expenditure between now and
1920 of $1,000, 900, or an average of
$3.50, 100000 per year. President Loree
of the Delaware & Hudson made in
1907 a. careful estimate of the amount
which should be spent annually to
keep pace with the transportati
needs of the country. His estimate
was $500, 100000 per year. In view of
the fact that my estimate of 1890, 0O0,.
900 was a rigidly conservative one, |
covering only such expenditures as
were absolutely necessary to keep the |
plant in it's present condition, we may
fairly assume that the average of |
these two estimates will be absolutely |
required to meet the minimum public |
demand, or about $500, O00, 900 per year. |
For the fiscal year 1909, the last year |
for which figures are available, the |
amount invested by the railways of |
the United States in road and equip
ment charged to capital was only |
s316, 900, 900, and the total increase in
capitalization, which included issues
covering the purchase of other securi-
ties and issues for which par was not |
received, amounted to only $780, 1t |
is evident, therefore, that railway
must face the future
with some misgivings.
CRITICISM OF KAISER