The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-09
URGES GOVERNMENT
RAILWAY OWNERSHIP
william F. MacLean, Canadian
VI. F., Says It Will Solve
Rate Problems.
STEP Is NEAR, HE BELIEVES
Looks for Offers to Sell by
Pennsylvania, Central and
New Haven Lines,


proprietor OF the Toronto World and a
leading conservative member of the DO.
minion Parliament. In which he has sat
for twenty-five years. believes that the
railroads OF the United States and of
Canada Will be owned and operated by
the Governments within u comparatively
few years
Mr. MacL&an. who was at the Waldorf.
Astoria Yesterday, sees no other ,utco,na
Of the constant strife over rates NJ thc
conditions which produce Gripping strikes
and Of the demands of the peopIs Of this
country and Canada for improved service
n Il tax with reporter for THE Sun
yesterday the editor and NJ. T.. sharply
criticised the railroad situation in his own
country ana explained why Government
ownership must come eventually
Canada has railroad situation" he
eald which Is the outcome OF a lack of
policy. We have the Canadian Pacific.
wonderful success In many respects and
which is still growing the Grand Trunk
and Grand Trunk Pacific, the last men
toned being uncompleted. IL has cost
the Dominion many millions of dollars.
but as matter of fact II is owned by
the stockholders Of the old Grand Trunk.
Then. too there Is the Canadian Northern.
financed by the public or by public euar,
antees.
Unnecessary Duplication.
The latter two roads should be finished
.nls year parliament puts UP more
funds. Grant that they are COMPLETED
rapidly the situation Is this: A LOT OF
unnecessary duplication as to constr,,c.
lion has occurred which forethought would
have avoided 'N
But worse than that. there Il to be
an uncaiied Tor duplication OF service and
maintenance. and this entails a continu-
GUS strain on the public's support OF the
railroads. Our three great transconti-
mental systems parallel each other instesd
OF branching out independently into vast
new territories that require railroad tap
ping TO come to full development.
Still worse, the Canadian Pacific. which
ought 10 reduce its rates because Of its
cnarter obligations to the pubic, is actu
ally restrained by the other companies
the junior roads, who say that as new
ROADS they cannot meet a cut in rates
And yet they received the public money
and public Endorsement expressly for the
reason that they would compel lower
rates. N"e
we nave a public owned system known
as the 1nter-Coloniai Canada has thu,
three cross the continent roads and a
railway commission. yet high rates are
ma htained ana unnecessary duplication
OF construction and servic. despite the
fact that Canada has given land. money
ana bonds In the assurance that the pub
ne Would be served cheaply and effec-
lively.
state Money Wasted.
And after all this outlay Canada has
10 completed system owned by the State
she has spent her money, but she hasn't
ne goods nor the efficient service that
iorsthcught might have secured. Now she
must md a way out OF the muddle II the
owners of the roads and the securities
issued are 70 get dividends or interest
and the public is to secure a reasonably
priced service.
After all the building, all the money
spent. we are now faced with the problem
o. how 10 get efficiency. how TO maintain
the national credit and how to get the
value OF our money from railway regu-
la'loh and from the railway commission.
PERSONALLY | believe that the answer
10 the problem IS Government ownership.
l ain inclined to believe that the Cow
eminent Will In time insist upon acuuir-
;ns our roads at their physical valuation
while agreeing TO take care OF the holders
OF securities. i believe that will be the
outcome Of the railroad situation In the
United states as we'll as In Canada.
Now you will be surprised when I
venture the assertion that within 4 year
or two several OF your biggest lines will
be going TO the Government OF the United
States. hat in hand. and asking the Gov
eminent to buy them out. look for the
Pennsylvania Railroad. for the New York
Central, for the New Haven and for other
lines TO make propositions TO sell.
ALSO I am quite sure that your Gov
eminent will look favorably upon such
Propositions provided that the roads will
agree 10 accept price based on physical
valuation.
Sees Start Already.
What IS the main thing that your
Interstate Commerce Commission and your
Government railroad experts have been
doinst Getting data az regards the
physical valuation OF your roads. To
mo that implies your Government Is
getting ready TO bargain.
! doubt IL the roads will accept a
price based on physical valuation, even II
th- Government agrees to protect the
security holders, but have no doubt that
como form or arbitration can be arranged
between the United States and the rail-
roads which will solve that problem
why do ] think that Government
ownership Is coming? Because every in
olcatlon of railroad politics suggests It,
Because the trend in these days is for
Government ownership and operation OF
such utilities and because financial and
labor crises Of various sorts viii have to
be handled directly by our Governments
oa this side OF the Atlantic they are
handled IN some OF the great nations on
t4'o OtLtr SIDE.
Canada had billion dollars invested
IN h"r great systems, but under the
present system the people are not getting
th@lr moneys worth There 10 Il strong
demand that the nation get an adequate
return for the vast sums and for the
aNhlc credit she has handed over To tie
roads Many people ara sway,ng TO the
reh'I mat this return can only be ac-
"4npishcd through Government owner
snip.
An interesting feature OF the railroad
situation both In my country and yours
u ne growing interdependence OF the
'"adS OF the two countries Your roads
a. reaching out more and more for
'.iad AN business. for Canadian outlets.
"ule our lines ar striving for American
o.-.uess and for American outlets"
MI Macl.can founded the Toronto
N"'H IN 1850 and has been identified
Avn u ever since. lilo has given In
'Ar.Itmcnt great deal of his attention
20 railroad problems and legislation and
- regarded at home AS AL authority on
ne subject.