The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-29

Their average rate IL &c pfennigs, N
figure"
In Austria in 1860 the Government
owned over 60 per cent. OF the railway
mileage. In 1885 II sold its railways
but in 1873 II began to resume owner
ship. In 1880 1t had IL per cent. Of the
lines; in 1890, 43 per cent. and In 1909,
| 67 per cent, or 1880 miles. These
changes have reflected the economic
history Of the country. Government
| operation has been consistently q drain
| on the State; in 1906 tire roads yielded
2.S5 per cent. and In 1907 3 per cent.
-Four private companies" NJ. 0uyot
says, have never had to resort to Q guar.
anteed reserve fund. During the period
| l9O2-06 one Of them did not earn divi.
dends on Its capital. the second earned
from per cent to SIS per cent, the
third from ga per cent. to 6.6 per cent,
while the fourth earned from IL to II
per cent. And all these companies pay
taxes to the State" In Italy, Switzer-
land. France and New Zealand no arsu.
ment for public ownership of railways
can be found that begins TO Offset the
certificate for private enterprise fur
nished by American railroad history.
With NJ. Guyot the conclusion q
| this whole matter In that State rail.
ways fall into one Of three situations;
FIRST where they are profitable and
| tho public treasury absorbs the profit,
| In which event the interests OF shippers
and passengers are sacrificed to those
| OF the Government, as Is the case in
| Prussia. second, where tho roads are
operated at a loss and the deficiency
Is made up by taxation. tho interests
OF the taxpayers sacrificed 10 those a
the shippers and passengers; third,
where all other interests arc sacrificed
| to those OF the employees, political
considerations swsmping those Of
| transportation. a condition asserted 10
be In varying degree an unavoidable
| attendant upon State ownership. NJ
Guyot applies this reasoning also to the
British tramways.
The housing OF the working classes
az; was passed By the British Parlia-
ment in 1890; Il authorized local gov
ernments 10 demolish unsanitary
houses, with provision for compensa-
ton to owners Of the condemned prop
critics. This led TO evic,ions whose oon-
sequences IL was sought 20 avert BY
putting UP municipal tenements In
London between 1923 and 1871 BULL
inss containing $4,000 rooms ans hous-
Ing $4,000 persons were torn down. to-
gether with enough furnished rooming
houses 20 bring 80 total Of the e1-
domic.led TO $4,000 The County Council
constructed buildings Of 6.a2s rooms,
2.5l9 cottages and three lodging
houses with i.s4s bedrooms for single
men: . total of lodgings for 5l,sss por-
sons. The Investment required uSa
sl4.021. 900: gross income from II. 81
00e, 200. OF which es.os per cent. is rival
lowed up by interest and sinking ftiId
charges, repairs. taxes. water. lights,
unco!iect!hle rents. &C. 70 that on the
best showing the Undertaking Is sclf-
supporting but not source o. profit.
But this showing. which would be salts
factory and u Justification Of the policy
were II complete. In spoiled by the
sophistry OF municipal accounting:
other funds and accounts contribute 20
It's making. Does the alleged gain In
sanitation Offset ths deficiencies OF The
undertaking in respect OF municipal
finance? "Out Of population Of a.
537 900 the London County Council has
dispossessed ahotI: 81, 900 individuals,
IL has housed 6l,s5S. In the report Of
the Commission OF tho Municipal Coun-
ca Of Paris on tho subJert OF cheap
housing 1.-THE commissioncrSl say: For
several years tho mortality due TO tu-
berculosis has fallen IN Lon
don from 80 20 10 a thousand
owing in large measure 20 the work
undertaken by tho London County
Council, a work which this e'ngle re-
suit would serve TO justify In other
words. tho London County Council
moves per cent. Of the population and
the mortality from tuberculosis imme-
II 4. 4
IL truly miraculous, but tho most strihf
ing feature Of the whole statement IN
the tremendous disproportion between
given cause and effect" NJ. Guyot ex-
aininos thu housing OF the working
classes on the Continent with similar
results IN scepticism. In Germany.
Italy, France, Belgium. Holland. Switz-
erland, Austria, Hungary, Sweden ard
Norway he finds misguided impulses Of
social sympathy leading 20 the benefit
or one class At the cost of another. In
the very use IN this relation OF the term
working classes" he finds evidence
OF the retrogressive character of such
measures: The laws concerning un.
sanitary buildings are a new violation
of tho right OF property"
Tho survey comprehends a wide
range OF topics. Government contro! Of
food supplies in Switzerland. Franco
Germany. Austria and Italy hss re-
suited uniformly in A business unsat,s-
factory 10 It's patrons and Improbable
for Its municipal managers. In Governs
ment monopolies, excmpiifed by the to-
bacco business in France, similar re-
suits are reported; SO. too IN insur-
ance and similar businesses the benefits
arc disproportionate 10 tho cost Tho
core OF the books theory Is that indus
trial operation Is Inherently adapred"
to private enterprise, and that indus
trial control" 10 the only proper -t,nc-
ton OF government In this respar.
Government In business In "a dishonest
man." able to pay Peter only by roob!ns
PAul