Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-01-02
RAIL CONTROL IN ENGLAND.
System Adopted by Government Proves
Highly Successful.


railway mobilization plan include OPP
Grafton Of the lines by the same Off
Gals and employees as before the war,
with the exception, OF course, OF the
men called to the colors: a cabinet
officer at the head Of committee OF
railway operating officials, in existence
before the war under an act OF pari1a-
ment more than forty years old; the
transport of all government business
without the necessity OF routine pay
ment for each specific service; the
guarantee by the government to the
railway companies Of the same net
earnings that they had in the last year
Of peace; the equitable settlement OF
all labor disputes by the payment OF
war bonuses.
ENGLAND declared war on Germany
August 1, 1914. At one minute after
midnight on August the railroad sys-
TENS Of England, Scotland and Wales
passed under the control OF the central
railway executive committee.
At the head OF the committee Is the
chairman Of the board Of trade, cabi-
net officer heading the department,
roughly corresponding to the United
States department Of commerce and
labor. The active head Of the British
committee, however, is a railway ex-
ecutive, Sir H. A. Walker, OF the Lon
don Southwestern railroad.
The law under which the government
took the railroads required 1t to rem
der them full compensation for loss or
injury sustained because Of govern
n1Yt this DrO.
vision of law the government made an
agreement with the railroad companies
the principal features Of which are:
First. That the railroads place their
entire organization at the disposal or
the military authorities and handle
traffic in accordance with directions
from them.
Second That the government peri
od!cally pays to each road such sums
Of money as are necessary to make us
net income for the period equal to It's
net income for the corresponding peri
cd of the calendar year 1913. In other
words, the last year Of peace was taken
as the basis of payment.
Several notifications Of the arrange
ment have been made. The first covers
the question Of fixed charges on pew
railway capital invested during the
war period. Fixed charges are OF
course paid out Of net revenue. Early
in 1917 the government agreed to allow
per cent interest on all capital In
vested in new railway property since
August I, 1914.
The second modification covers the
question Of deferred maintenance.
Early in 1917 the English government
permitted the railroads to enter rea-
sonable charges for maintenance IN
their operating expense account. II
such maintenance charges were not
wholly expended the deferred portion
was credited to reserves to be drawn
upon later.
Despite the loss Of some 10000 en-
ployes who enlisted for service at the
front. the physical operation OF the
| British railroads under the agreement
with the government has been a sue
| eess. They have furnished the largest
amount Of transportation in the history
Of the country with a smaller and less
skilled labor force.
Radical measures to improve the car
service situation were not undertaken
until the beginning of this year, after
over two years Of war. The pooling OF
cars was not ordered in England until
January I, 1917.
There have been no substantial in
creases In the freight rates. Passen-
ger rates. on the other nand, were sub
tected to number Of adjustments, all
tending to a higher level, and then
we're, on January l., 1911, increased by
so per cent.
1t is known that there have been
deficits for the government to pay, as
1t is not charged for specific move
ments Of troops or supplies. Speaking
In the House Of Commons in the spring
OF this year, Bonar Law, chancellor Of
the exchequer, stated that the English
railway agreement was IAN extraordin-
arily good bargain for the government"
| Altho the dividend return upon Eng
Iish railway stock has been certain.
those securities have, Of course, suffer-
cd greatly in comparison with other
securities which with rising prices
could obtain a rising income. The
market value Of twenty six standard
railroad stocks declined from 27s,-
100000 pounds sterling in 1914 to 201.-
100000 pounds sterling in 1871. The
English railways hsye probably bor-
rowed less than sIoo,oto,o0o for exten.
sions or for additions to equipment.
In considering the smailness OF this
Investment, It must be remembered that
the total mileage Of English railroads
is only about 10000 miles. as contrast
ed with approximately 10000 miles in
q the United States.
! For protecting trousers from mud q
French inventor has brought out .
guard to be attached to the shoes like
/ q spur. ~