The weekly Iberian. (New Iberia, La.) 1894-1946, 1915-12-04


contends in recent editorial
that the 80 railroads which the
Railway Age Gazette has shown
we're on October / in the hands
of receivers deserve no pity. 1t
computes their average capltali-
zation per mile at S5l 900. 1t
adds: "Now, the average railroad
capitalized al $54, 600 mile is
on the way to the receiver when
the first rail is laid and the first
spike is driven That means at
least $50, 900 mile of dishonest
capitalizaiion-Of wind and wa.
ter-aDd railroad cannot run
on either of those elements. 1t
is just such dishonesty capital.
lzed corporations that induce and
reqGire regulation. In order to
keep ding they have to charge
more than the traffic will bear u
Fhe answers TO such foolish
statements as these are so nu.
merous 1T is difficult to choose
which to use Their implication
is that the "average railroad
should not be capitalized fOI
over S34 900 a mile. There le
not system Of standard gage
railways ou earth which is not
capitalized for much more than
tAis The Examiner ~ an az
den advocate Of government
ownership. Let US test the IN
tt.liigpncr aud fairness of its
stare mvnt Icy rhe average costs
af8o = ruction per mile reported
II lyp'cal systems Of railways
snau entirely, Or practically en-
rely by governments. The fol.
Owing are the average costs Ol
cors,r action per mile reported
for the 9 ,te railways OF certain
countries: New Zeaand, $53, 7S0
| Denmark, s62 763; Victoria, t63,
5l9; New South Wales, S75 200
Japan, $50, ,l02; Italy, &I5S, 1856
La Germany, where most of th'
railways are owned b! the gov
ernment, the average cost OF con
structiop is reported as SIG, 500
and IN Belgium, to which hi
same sta smeD' tnr',es. IL lie re-
ported AS s216 ll3 The average
cost of cobstrhtf ot the Ma
tiOnal prArsc. ntai Sp'. say
which has rpc- ft heen bulii b!
the governme Nana.n A
about 800 600, wlre qt -
or adequate tefmf he GOV
ernment of the Unlte states, i
connection with ths building q
the Panama Canal, rec onstructet
the Panama Railroad. OoiOne
Goetha ais testified that up to No
vember 1, 1911, this reconstrnc
ton work had cost S167,O 900
mile, and that it would react
s226, 100 a mile. From these
statistics Of state railways scat
tered all over the world ths
reader will be Obliged to draw
one of two conclusions. lie vii
probably conclud that since II
costs the average governments
great deal more than $4,000
mile to build an "average rail
road" q policy of regulation
which contributes toward the
bankruptcy Of private railways
having only this average capl
talization IL Of very doubtful
fairness or wisdom. On the 9th
or hand, if he agrees with the
| San Francisco Examiner that
capitalization of $54, 900 mile
"means at least $4,000 mile OF
dishonest capitalization" anc
that a railroad with such q capl
talization must "charge more
than the traffic will bear In orde1
to keep going" what must b
conclude as to the intelligence o.
consistency of a paper which de
nounces private railways with
can't alization of only S54, ,OO(
spd defends a policy of reRuls
liion. aud at the same time sdvo
Gates policy Of Cover hmeD
ownership hicb results in capt
alizaiion varying from $54, ,OO'
over 5000, ,00Oi-Railway Ag'