Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1916-01-29

years has been considered q fair price
for SO doing. II a similar method were
adopted in this country It would make
the cost to the United States about
SIS, 900, OOO, OO0 I think no one Will con-
tend that the United States can issue
Indebtedness to that amount, or to
any considerable part Of 1t. without
materially increasing the rate which
it would be necessary to pay for the
money; and am not confident that 1t
could be done in a reasonably short
time without paying as high a rate as
the bonded indebtedness and the net
returns on stock averaged during the
past year, which, II true. would seem
to remove the possibility Of a saving on
account Of a lower government rate
than paid by corporations.
the railroads, there would be loss of
taxes amounting to about Sic, 900 a
year, this being very considerable item
in the revenues of most Of the States.
In the past one Of the strongest argu-
ments in favor Of government ownership
has been that it would prevent discrimi-
nations between persons, places and COM
munities: but under our present railroad
laws 1 do not think that there is enough
complaint on this score to warrant taking
such action unless the other reasons for
SO doing are overwhelming. There are
other considerations which relate to this
vately owned corporations goads tradic
managers to the highest state Of acttv1-
ty and efficiency. If they do not get -
good results as their rivals, they are not
promoted. and, very frequently. are re-
tired. When we turn to government con-
trolled railroads all this is changed. The
taxpayer may be called on when the re-
suits are not satisfactory. Therefore
and it is the experience in all affairs OF
life that you do not get efficiency unless
there is some pressure or some personal
emolument resulting from it.
Any such system as the Civil Service
applied to our railroads would be fatal.
One of the distinct weaknesses Of the
Civil Service is that men cannot get a
suitable reward for unusual activity or
mediocre as well as to the efficient. and
nothing could be more subservient to the
best results in the operation OF railroads
than the putting of mediocre men in posi-
tons of high executive responsibility.
Before taking any such important step
as the ownership and operation by the
government of public utilities, we should
carefully examine the experiences and re-
tried out the same operations. The West
ern Railroad of France was taken over
by the French Government in 1908, since
which time the following results have
Oecll ODldlHeu. WltHlI lHT60 years Tie
number of employees has been increased
Is per cent. During that time the operat-
ing expenses increased from $29. 600
to s44,5OO,OOo. or 50 per cent. This in
crease-and it is an important point to
consder-was largely due to the Increased
cost of labor. In 1908 wages were $16.000,-
600. In 1912 they had increased to $a8,5OO,-
600. or an increase Of. s. per cent. and
the total expense. five years after the
government had assumed control. had
increased 6S per cent. In the meantime
the gross earnings had increased only
IL per cent In 1911 there were $3.50 more
men than in 1908. which Is also a signifi-
cant result
In 1911 the operating expenses Of the
Intercolonial Railroad in Canada were
97.2 per cent. of the gross receipts Of this
government-owned line. and the net earn
ings We're less than $500 per mile. while
the net earnings Of all Canadian rail-
roads, including the Intercolonial, were
s2.272 per mile. All of the conditions re-
lating to the territory in which the In
tercolonial operates are better for sue
cessful operation than the other sections
of Canada, and yet this property has cost
the taxpayers of Canada $343, 000, 900, or
$4,000 per mile. which includes cost Of
road. deficit from operation. and I'M
earned interest at four per cent on the
investment