The Washington times., 1919-05-09
POINTS OUT DANGER
IN GOVT. OWNERSHIP

MONTREAL. May 9.-President z.
W. Beatty, Il c., in an address to the
shareholders at the annual meeting
Of the Canadian Pacific Railway IN
Montreal today, stated that the re-
suits of the years operation WERE on
the whole, satisfactory, notwithstand-
ing the shrinkage in net earnings,
due to the extraordinary increase IN
wage scales and cost of materials.
"Over az per cent Of the total in
crease in operating expenses" he
said, 'was due to the increases in
wages. The increase in gross earn
ings was due to the advance in rates
granted in March and July.
after four years of war the physi-
cal condition Of the property was ex-
cellent, requiring only usual main
tenance expenditures to insure usual
efficiency.
"The financial showing Of the last
three months Of the fiscal year has
been disappointing, but not unexpect-
edIy so. The financial position of the
company at the end of the fiscal year
was. on the whole, extremely graft
flying.
Many BIunders Made.
SERIOUS and continuing plumbers in
government being required to assume
the ownership at present of 11,4OO
odd miles Of railway, with the pros
pect of an additional 6,400 miles.
When this acquisition has been &C
complished, the principal competing
systems in Canada will be the Cana
dian Pacific and the Canadian ma
tional railways.
Il have no fear of government
ownership, but Government owner
ship apparently has some fears Of
private competition under equal con-
dftions. 1t has recently been found
necessary to give the national rail-
ways privileges in the matter of con-
struction of railways not enjoyed by
private companies and to exempt
them from complying in other re-
spects with the existing laws re-
specting railways. 1 sincerely trust
that this policy of making one law
for the national railways and one for
private enterprises will neither be
continued nor extended because moth
ing would, in my opinion, be calcu-
lated to destroy confidence in Cana
dian railway enterprise more than a
policy which confers exclusive and
peculiar rights on the national rail-
ways designed to make the cOmpeti-
tive conditions unequal.
Must Bar Politics.
The subject of government owner
ship has received much attention re-
Gently, but not nearly as much as
the Importance of the subject justi-
fies Notwithstanding our previous ex-
perience and that of 'the United
States and Great Britain. If govern
ment ownership and operation of rail-
ways is to be attempted on a large
scale the situation is full of danger
which cannot be avoided or even
minimized except by vigorously indie
pendent and non-political admins
tration, which is at least difficult to
establish under our system of gov
eminent This fact, however, can
only be obvious; that in no other way
can the people of Canada obtain a
correct appreciation of the results of
government operation of the sys-
TENS which are or which may here
after come into its possession than
by their being only realized If ad-
ministered in strict accordance with
the laws Of the country under which
other companies have TO operate, and
by their financial and accounting
methods being made as precise and
as accurate as the law now requires
as private corporations and by the
exact financial results being sub
mitted to Parliament each year
1T would seem to be obviously
wise that the assumption of further
obligation should be at least deferred
until the practibility of govern
ment administration or administra-
ton under the aegis of the govern
ment (Which is quite inseparable
from government ownership has
been demonstrated"