Evening journal., 1921-10-29
STATE RAILS
COST MILLIONS
England Also Turns Roads
Back to Private Owners
After Huge Loss
S-HOUR DAY
CAUSED DEFICIT
By LLOYD ALLEN

Omitted Press STAFF Correspondent
LONDON. oct. l0.-Britain's rail-
roads-after seven years OF govern
mental control-have been returned
to private management and the Brit
ish taxpayer is approximately three
quarters OF a billion dollars poorer
1s1.0s1,149 pounds sterling, to be
exact.
Today. IT'S safe to say the British
people generally rejoice at the ter
mination OF state Interference in the
railroad business.
Moreover the man in tho street Is
undoubtedly convinced that nation
alization" OF the roads would prove
a very questionable and PROBABLY
costly innovation. and he would
point to wartime curtailed services
and costly passenger fares. 20 prove
his contention that any socialization
or semi-socialization is doomed TO
utter failure.
Because the British arc essentially
modest about proclaiming them
selves efficient" the world at large
Is virtually ignorant OF the speedy
express trains that in normal times
run at world-record speeds. Also, it's
not generally known that the British
railroad companies and their work
ers have highly complex, self-ad-
justing wage scales that automatic
ally and with very little real fric-
tion keep the rate OF pay al a def
mite figure, as compared with the
cost OF living.
Wherefore the transfer OF these
gigantic properties from govern
mental to private control was ac-
complished without any special dis
cussion regarding wages. since this
problem had been adjusted many
months previously.
Also. the whole question OF gov
ernmental remuneration TO the COM
panies had been taken care OF by
means Of an arrangement whereby
the government guaranteed the rail-
road managements to keep the net
receipts. while under state control,
equal to the 1913 earnings.
Regular payments were made
from the state. subject to later re-
funds from the companies should
super-auditod statistics show any
over payment
Here Il was that tho state treasury
suffered. BY the time de-control ar
rived. August Is. 1921. the state had
paid out 121,9s1,14s pounds while
an additional figure Of approximate
~ 60.0o0.0o0 pounds remains TO be
paid.
These sums were transferred IN
three payments the first OF which
was made March 81. 1920. Previous
to this date receipts had balanced
expenditures.
Added TO the public cost OF state
control IS still another item OF some
4 000.0 900 pounds for the railroad
companies- OF Ireland
Britain has accepted these huge
losses with very little grumbllng, be-
cause they represent a small portion
Of the staggering cost Of the great
war
Throughout the terrific struggle.
the British railroads never broke
down. and IL Is believed here the
roads stood the strain better than
the railroads OF any other belTiger-
ent
Experts explain that Britain's
practice OF constructing the solidest
kind Of roadbeds and bridges. and
the consistent use OF lightweight
rolling stock accounts for the war
time efficiency.
Principal causes OF huge iossus IN
state operation Of the roads is attrib-
uted 10 general Inauguration Of the
cight-hour day. necessitating en-
ployment OF 10000 men. costing 49,
GOO. 600 pounds yearly, 10 which must
be added wartime wage increases 70
the regular personnel Comparativ,
pre-war and wartime wage bills are
as follows:
1918 annual wages. 47,5oo,o
pounds: 1920 annual wages, 113,
100000 pounds; 1921, estimated
173.0oO. 600 pounds
Under the present wage arrange
ment. the men get an additional shii
ling for every increase Of FIVE point
in an index figure Of the cost OF liv
ing. as compiled by the Ministry o
Labor.
Downward trend OF the living cos
entails wage reductions in the SAM
proportion. until a definitely fxe'
low level is reached. whereafter tn
wages remain stationary and canno
be reduced further
BY act Of Parliament. the British
roads are 10 group themselves into
four great amalgamations which vii
be completed by January I. 1928
Each group will have its directorate
thereby eliminating scores OF boards
of directors now functioning.
Sir Eric Geddes. who was wartim,
Minister Of Transport is repoi,,. Z,
have estimated an annual saving o.
Approximately 3O.oo0.oo pounds
though less optimistic prophets pu
the gain at four million.
simultaneously with railroad de
control. the companies inaururate,
cheap excursion rates. Coming q
the peak Of the vacation season. thi
move highly pleased millions OF hol
idayers. Regular fares remain ar
proximately rs per cent. over prs
war rates
Furthermore. people were pror
to associate cheaper rates. art,
months Of almost prohihitive fare
with private ownership. although II