The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-01-05

on the bonds would amount to $780,
100000. Deducting this from the av-
erage net income which the govern
ment recently guaranteed, plus the
average annual tax accrual, there
would be a remainder Of S463, 100, 055
to provide for the retirement Of the
bond issue and to make line extern
gions. ne hundred and seventy bill
Hon dollars annually at four per
cent, would result In forty years IN
the accumulation of S17,294, $50 ,00U
or enough to meet the bond ISSUE
and leave $293, 160, 054 annually to
cover variations i'm net revenue and
provide for the building Of new lines
The only sacrifice under this ar
rangement would be the tax now
paid. This could be doubtless met by
decreasing freight rates resulting
from the economy of central man
agement, the elimination of duplica-
ton and the hauling of freight and
passenger traffic by the shortest
route.
Any comparison Of freight rates
between the United States and Ger
many, the Low Countries and Den
mark are misleading unless the av-
erage length of haul is taken into
consideration The average haul in
Denmark is but a few miles and in
the United States, hundreds of miles.
This greatly increases the handling
and terminal charges. A comparison
between hauls Of the same length
does not show the same difference in
favor of the United States as the
average hauls.
Water TRANSPORTATION.
Water transportation is an inn
portant factor in these countries
They have created and maintained
enormous systems of canals which
together with natural waterways.
creates a very cheap method of
transporting bulky and non perish
able freight. In Germany, for in
stance, the freight handled BY. the
waterways is 20 per cent Of the
freight handled by the railroads
This freight is handled at an ex-
ceedingly low charge.
The railroads of these countries
handle much high class freight which
in this country would be slapped by
express or would be handled by
special carline companies at an in
crease over the general freight rates
When all factors are taken into coll
sideration, the increased handling
and terminal charges owing to short
hauls, the large percentage of all
freight handled by the waterways
and the express and high class
freight which lis classified as ordin-
airy freight, it seems probable that
the freight rates of European gov
eminent railroads are as cheap or
cheaper than those i'm this country
in spite of the fact that the average
investment per mile of railroad is
twice as great as in this country.
According to Dunn in his Govern
ment Ownership of Railroads." the
mil In, Eunaaa
STA is 1.24S cents, while in the
United States, 1t is 1853; the German
rate being 1.79 per cent of that of
the United States; the Inter- Colonial
Railway of Canada is .5S2 or a per
cent OF that of the United States,
Japan $40 or 80 per cent of that OF
the United States, while the rate in
Belgium is 1909; in Switzerland S.01
and in Denmark 2.14; New South
Wales LIS. It win be seen that In
Two Instances at least, the freight
rates on government owned railroads
are less than those in the United
States.
When we turn to the pAssengei
rates we find a different story The
average rate per mile in the United
States Is 1.94, while in Prussia. il
Is .SS4. The Prussian rate being go
per cent Of the rate Of the United
states, IN canada II is l94i Argcn-
ina 1Sl; French private. railroads
%; Holland 14si Unitea Kingdom
rs; while on state owned railroads
he rate in Prussia is S84; New
South Wales A104; Belgium .T39:
switzerland 1.29; Denmark 1.f3. In.
er-cOlonial Canada, 1856; France
s05; japan t7.4s. ss fs StGle3
AS early as 1870, Prussia inaugur-
tied government ownership. In 1879,
he government had invested three
hundred ana seventy millions of dol
ars in railroads. BY 1911, they had
increased their investments to ST.
Jos, 100000, The earnings from the
railroads was more than
nough to pay the original purchase
rice and mike all extensions and
improvements. AT the beginning OF
he war, Prussia received 46 per cent
4 all its income from its railroads.
#. e. PACKARD.