The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1916-11-26

New York, November 25.-(Special J
Wall street was greatly interested in the
statement made this week by Chairman
Newlands of the joint congressional com
mittee. outlining the purposes Of the in
vestigation of the railroads which started
last Monday. In opening the first session.
Senator Newlands explained that the wit
nesses to be called would include bankers,
railroad presidents. railway employees,
railroad stockholders. economists, pub
licists, farmers, manufacturers, shippers.
While it was stated that the investiga-
ton would cover a wide field, it was
evident that there was one phase Of the
subject of uppermost interest, govern
ment regulation VS.. government owner
ship. On that point in his opening re-
marks, the chairman said;
ut is question that must be faced.
Other nations far advanced in eiviliza ton
have adopted the system. Recently I'M
der the stress of war, almost all Euro
pean governments have taken over the
railways. If we pursue the exercise and
the study of government regulation wise
ly, persistently and energetically, we may
will meet every requirement, both in time
OF peace and of war, and in exigency or
crisis. But it seems to be a wise thing
for the government Of the United States
to ascertain now the history of the coun-
tries that have adopted government own
eIship and operation of railways
Beyond question the history of govern
ment-owned railroads abroad should be
studied If any constructive work is to
be accomplished. 1t is no secret, how
ever, to say that many Of our railroad
men know now what the answer will be
as far as government ownership for this
country Is concerned. Take the case of
Germany. For years the German railroad
under government ownership have been
held up as a model for the rest of us
to study. But 1t should be understood at
the beginning that the employees of Ger
man railroads are all eX-soldlers, which
means that they are trained for just such
work. Obeying 'orders with a German is
matter of tradition. Many years ago
Charles Francis Adams thus pointed out
why German railroad methods cannot be
applied to our lines: "In applying results
sdrawn from the experience of one coun-
try to problems which present them
selves in another. the difference of social
and political habit and education should
ever be borne in mind
But operating even under a monarchy,
the results obtained by German railroads
do not compare favorably with the re-
turns shown by our railroads. German
railroads, under normal conditions, pay
only 31s per cent interest on the cost of
construction; they pay far less taxes to
the government than is the case in the
United States; the average freight rate
paid by the German shipper is around Il
mills per ton per mile, against our 7lz
mills, and the average pay received by
employees is far under $500, whereas in
this country it is close to 500. Thus,
from the viewpoint of the government,
the shipper, or the employee, German
owned railroads will not compare with
those privately owned in this country.
Australia affords another case fire.
ouently quoted. The best year ever re-
ported by the governmental railroads
of Australia showed net profits after pay
ment of interest of S446 per mile, or ex-
actly the same amount our railroads paid
that year in taxes. AS for the average
freight rate, that year, 1911, it was 1872