Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-06-02
New Zealand Does Not Teact
Wisdom of Government
Ownership in America.
BETTER TO REGULATE
THAN OWN AND MANAGE
Government Regulation of Railways
in Washington With Final
.... Good Results.
EDITORIAL C"rrespondencs III III sisr-
BY THEODORE w. MOVES.
MAY 5. 1917:


MAY s. 1871:
In New Zealand the government owns
railroads and telegraphs and several mu-
nicipal governments own street railways.
There is nothing in New Zealand eN-
perience which should deter the niteo
States from taking control of telegraph
communications, If it wishes in the same
way in which it now controls coumuni-
cations by mail New Zealand has cheap
and efficient postal and telegraph serV-
ice under government control The TWO
services go well together Our telegraph
service under individual control IS ab-
normally expensive.
The experience of New Zealand does
not however. unqualifiedly commend TO
the United States ownership rather than
stringent regulation of the railroads. nor
does municipal government ownership OF
street railways In New Zealand commend
such ownership as a substitute for strln-
gent regulation to Washington. Tor m
stance.
The advantages claimed for govern
ment ownership in New Zealand are ~
low and decreasing freight rates. as
against higher and increasing freight
rates in the United States; % cheap ana
decreasing passenger rates for New Yea
landers, and 81 no American overcap-
talization, with its train of resulting
evils 1t is declared that under govern
ment ownership in New Zealand the rant
roads are no longer run primarily tor
profit, but for service; all profits over j
per cent needed for interest are return
ed to the people in lower rates and better
accommodations. no special faVofs are
granted big shippers. corporations and
combines; everybody is treated alike;
oil oh feS I'm, ri
workingmen. farmers. etc; old age pen
sions, and approximations and relief
funds are provided for retirement of en-
ployes: railroad travel is safer. and no
dividends are paid on watered railway
stocks. 1t Is alleged that there is no
political corruption. no trouble with pat
ronage. no logrolling among members to
get new lines. no political pressure by
representatives to get jobs for their
friends. no manipulation of roads to
favor individuals or particular sections of
the country. and no tendency of solid
railway vote to keep corrupt admins
tration in office forever.
Government Ownership Abroad.
On the other hand it is claimed for pri-
vate ownership in the United States that
az freight rates are only from one-thirti
10 one-half those OF New Zealand: that
% the cheap special passenger rates in
New Zealand are not enjoyed by travel
ers in general, but by special classes OF
New Zealanders. who are carried at a
loss at the expense of the taxpayers as a
whole. and that 10 the roadbed, the roll
ing stock, the speed and the general con-
venience of travel are not up to the
American standard. that the service is
poor and coupled with indifference TO the
criticisms of patrons.
in rail
struction and extension in the public in
terest is claimed for America. and in this
connection il is pointed out that while
such construction in New Zealand has
not even kept pace with the slight in
crease of population. wonderful activity
in the JGitel States has given in IA fex
Years 10 suci. new states as oklahoma.
with not a mile of track before 1870. more
than twice the track mileage today of the
whole of New Zealand. On the question of
comparative profits TO the public. il is
claimed that the taxes paid by American
railways in one year would offset the
nominal net earnings Of the New Zealand
railways for twenty years.
Some New Zealanders attack government
administration of the railroads along the
very line of evils denied in respect TO it
BY its advocates. alleging Determinations
not In rates. but in distribution of the
valuable privileges of railroad facilities
and a tendency TO use railway employees
as voting material to be pampered or pun
ished with reference to their votes instead
OF their work.
The New Zealand critics of government
contend that the benefits of the system
are largely confined 10 those who live
along the line of the railroad. that extern
sions are slow and controlled by favorit-
ism. The roads, they complain though
nominally profitable, are. in fact run at
loss. which falls on all taxpayers for
the benefit only OF those living near and
utilizing the railroad We of the United
States. in our own glass house. cannot
throw stones at unsound financing at the
antipodes. but we may take melancholy
interest in observing the fact that New
Zealand borrowed money from Great Brit
ain to buy great tracts of land from large
owners to be sold again to small owners,
and then used the money received from
the small owners not TO repay this debt to
Great Britain, but as ordinary current
revenue TO meet current expenses. and
We are also Interested in similar error
in the financing Of the government rail-
road. il il is in fact run al a loss to the
general taNpaying public for the benefit
of those whom the government has favor
ed with railroad facilities. Peter and Paul
in partnership rob Peter to pay Paul. and
whether the operation is satisfactory OF
not depends upon whether the transaction
is from the viewpoint of Peter or Of Paul
Regulation in the United States.
But whether or not government owner.
ship IS beneficial in New Zealand i,
seems to be generally conceded that
such ownership would not work well a,