The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-29
Govern ment 0wneuhip.


Govern ment Owneuhtp.
II any fact or figure that might be
used as an argument against govern
mont ownership or operation OF pub
lie utilities has escaped tho grasp OF
YVES GuYo, French economist and
statesman. IN Where and why Public
Oioner ship Has Failed (Mscmillans).
translated by II. r. BAKER, that fac; OF
figure must be either hopelessiy obscure
or extremely agile In eluding pursuit.
NJ Guyot indicates, a. tho fundA-
mental error OF tho proponents OF the
theory he rejects and attacks. their neg
lee: Of the plain teachings Of experience
and their reliance upon "the testimony
OF public departments never weary O.
boas;!ng o! their own successful ad-
rnin!stration, and Of municipalities
which. inspired BY loc0! pride. declare
that they have accomplished miracles"
He fnds inef''ciency. extravRgance.
.rrespousIb!ii,y and even corruption in
variable attendants OF public ownership:
Soc!a.!stn Tray prate OF labor for the
sake OF service. but no such motive
finds place in his category Of ";he
mainsprings Of human action: com
puls!on. bribery and tho instinct for
personal ga!n-compulsion by confls-
cation on one side. the strike on the
other; bribery. IN tho not necessarily
offensive sense of political rewards.
Primarily selfish motives are tust as
responsible FOR the good az for the bad
that IL IN life. Sane budget regula-
ton and public management OF trading
enterprises are. VI. Guyot declares with
Dogma en- Of u-h Nh ha To
and in which he INDUCES quite freely.
nothing less than contradictions in
terms. An outstanding instance OF this ne
finds IN Belgium. where tho State began
running railroads a. long ago So 1894;
but with NJ. Guyot tho fact that
French engineers are unanimous in
praise Of tho skill with which the Bel
CLAN lines are managed" has no argu-
mentative ponderahiiity whatever: in
weighing the evidence Il seems 70 count,
for instance, nothing at all as com
pare! with tho protest OF a convention
OF dlagruntled Belgian manufacturers
agains; the Ingenious accounting Of the
Ministry.
Private enterprise. whether individual
or corporate. Is undertaken on the
strength OF n supposed demand for the
product Of the energy skill and capital
OF those engaged sufficient 10 make its
satisfaction profitable. II their es.t-
mates arc correct they gain: n not
they lose. In either case they stand
the consequences. But such autornat-
icnlly operating responsibility does not
attach 70 tho prosecution Of business
enterprises ny government officers, In
place OF THE inevitable and !nfallible
criterion OF tho business man" thew
are guided and governed by the PASSING
whim OF popular fancy. A Government
or good spenders" shrewd enough 10
mako the taxpayers nay taxes w,rnou,
perc".v!ns that theyAre taxes. can do
wonders with government monopoly,
Ths RUSSIAN Governments monopoly
or alcohol was established on pretence
OF moral benefit 70 tho people At large:
mo social side OF drinking was to be
removed. the Government would have
no interest IN encouraging increa.ed
consumption OF liquors. But in 1912,
a representative year, tho monopolv ao.
counted for % per cent, Of Qovernren,
receipts Imagine n sudden effective
temperance propaganda among tina peo.
pie, They stop drinking. There /. a
deficit In the budget. VIII I, be- enough
FOR tho responsible officials to plead the
moral" aspect Of the monopoly in de-
renee OF their own financial dencienc,esr
NJ. Guyot rather thinks not,
For tho State owned rntlrcoh. ~,
Prussia tho lowest percentage Of prof,,
was 4.6s in 1883, the highest o2s in
1880 and tho average between E ana a
per cent: but. objects the critic. M
capital charges on the railway deb,
are included in the report Of operating
expenses At per cent. with a small
addition by way OF sinking fund, them
pronts' would he reduced by nearly
halr' In favor OF Government whom max /,
ing up 'ts reports on Prussian railw,p w |
Is the ease ana hence tho low cost OF |
construction. due to tho physical char. |
acfer or the north German country. In |
1907 the cost a mile was 227. 900 mark, |
while the average cost In Europe WA
equal TO 100000 marks a mile. The in
conventences OF traffic on the S,ats |
owned roads OF Prussia, tho red ,apr !,
the special tariffs-90O volumes OF
them-are notorious; in addition 10
these NJ Guyot cites facts ana fs-
ures to explode the myth OF sweet har-
mony between rail and water route. N
myth based on reports in wh.cn. nc
cord!ng to the Duisburg Chamber q,
Commerce. EFFORT In made to hide tho
natural fact OF group rivalry "behind
tho fig leaf of national interest,": 1.-THE
exceptional tariffs of the Pruss,au sys-
tenn ahect 63 per cent of tho total
kiiometric tonnage and 40 par cent Of
ths ssea Fsoe'Dts e ths Rsvas1AA O0AA