The Liberal democrat. [volume] (Liberal, Kan.) 1911-1924, 1914-12-18
WHY THE COST OF OPERATING
RAILROADS HAS BEEN IN
CREASED
juggling Against Increased Cost of
Labor and Supplies on One
Manufactured Rates
on the Other

During the last few years the ad-
vocates of government ownership of
railroads have been somewhat per-
sistent in the public press and the
matter is referred to here, not with
any idea of combating this propa-
ganda, but merely that the people
may briefly see both sides of the pic
tire. So long as a lot of men vel
come the wrecking of the railroads
on the theory that the government
VIII take them over and that such a
state of affairs would be preferable
to priv ate ownership, it will be i'm
possible to obtain from them a fair
judgment of the latter system which
now prevails in the United States. It
is impossible to go into this great
question at any length at this time.
hut here are few things worth
thinking about Much has been said
in recent years about the water"
contained in American railroad Sc
curities, and, in this connection the
valuation of the government owned
railroads of Europe is very interest
ing. In Germany the state owned
roads are capitalized at $114,1S5 per
mile, In Austria at 81 20,692, in Hun
gary Mt S69,2l0. in Italy at $126,SS6,
in belgium at $190,914, in Switzer-
land at $l02,950, in Roumanla at
$50, IL, in Japan at SSS,1O4, in New
south Wales at $71,391-while the
privately owned lines of the United
States, regardless of what water may
have been forced into them in spe-
enc instances, are capitalized at
only SG3,944 per mile. Whatever
imitation may therefore have been
put into these properties In the past.
the TACT remains that their present
valuation Is much lower than that of
the government owned railroads of
Europe, and, what is still more I'm
portant. the rates charged are the
lowest and the service rendered ad-
mittedly the best in the world.
In this connection, statement
contained in the last annual report
of the Deutsche Bank of Berlin.
which has paid up capital and re-
serve fund of $75,000,0OO, is inter
esting: American railroads need
higher rates. The present rates are
the lowest in the world-represen
ing but fraction of the English
railway rates. for instance-and this
in the face of the fact that wages
In the United States on the average
are fully twice as high as In Europe .
Certainly this view OF the privately
owned lines of the United States.
coming from Germany, which has
the most successful state owned sys-
tenn of transportation in the world.
is worthy of grave consideration.
Letting Well Enough Alone
In view of these facts, the average
ci'i7en may well ask himself whether
1t is not best to let well enough alone
rather than invite other ills we know
not of-whether it is not wiser 70
cure such defects as may cucumber
the present system rather than RIM
the danger of plunging this mighty
industry into the whirlpool of party
politics for all time, with its attend.
am ornortunity for evil of which the
past affords such rich variety of ex-
psrience. The United States is still
n young country. and in many sec
lions only partially developed. Many
new lines and extensions are needed
mere and there to give wider op-
portpnity to expanding agriculture
and commerce, and nothing could be
more unfortunate or disastrous than
that these favors could henceforth he
obtained only by leave of the domi-
nant political factions which VIII
reign at the national capital in the
years to come. Political parties are
IL 'ensely human Institutions. and the
average cautious citizen will prefer
10 leave the railroad expansion of
ire future to the economic law of
supply and demand of the different
communities rather than to place
suen temptation for power In the