The New York herald., 1922-08-09
BY SIR wM. AcwoRTH. K.C.s.I.

the fifth and sixth by w. Il. Layton.
BY SIR wM. ACwORTH. K.C.s.I.
Copyright IN all countries reserved.
Special Correspondence TO THE New York
HERsLD.
LONDON, July 29.-In railway af-
fairs, as in all other departments OF
human industry, the great war has
proved a sharp dividing line between
the new and the old. Before 1914 the
railways. speaking of the world as a
whole, by charging moderate rates,
which the public were able and ac-
customed to pay, earned an income
sufficient, after covering working ex-
penses, to yield a balance Of net
revenue which gave reasonable re-
turn on the capital invested.
Two years after the war ended.
though in the meantime the rates
charged had advanced by leaps and
which the traffic could hardly bear.
there were few countries in which the
railways were receiving sufficient to
cover their actual out OF pocket ex-
ownership, like Germany and Belgium,
but in England and in the United
States, the chosen homes of private
enterprise, the Governments had to
the railway machine moving.
A Return to SoIvency.
Gradually the railways of the various
countries are working back to solvency.
In England and the United States, not
they seem likely ere long to be earning
their prewar net income, and even in
France and Germany the deficits are
rapidly decreasing But in every country
the whole structure of railway policy
has been profoundly changed. 1t Is true
that England and America after sam
pling public management. have shrunk
back TO private ownership. and that
Belgium and Germany, after seriously
considering Standardization. have def
initely decided 70 retain State owner
ship.
ment Is. however. both In England and
America. very different from the old, and
similarly there is "A prospect Of radical
changes in the methods of State man
agement both in Belgium and Germany.
France has decided to release 10 pri-
vate company the one system, the Quest.
which It natlonalized in 1908, and so
again becomes country of private COM
pany management. But in return BY
the new law of 1921 the State control
over the companies, always strict. has
been made still more so. The State In
Canada has taken over from private en-
terprise the management or nearly
&c, 1000 miles Of railway.
Even countries not touched directly by
the war have recast their policy. In
Holland, where the State hitherto owned
the railways but leased them to COM
panies. the State has now gone into
with them by acquiring the
majority of the shares, with the conse-
ouent right to appoint majority of the
board OF directors. Spain is proposing
10 follow the example OF Holland.
This idea of partnership between pub
lie authorities and private investors In
enterprises which are, In American
phrase. affected with public interest
Is not new. 1t worked successfully on
the Mexican railways till the country
relapsed into political chaos. II was
applied before the war to numerous
tramway, electric light and power and
other similar undertakings by the Ger
man municipalities and Is being further
In that country at present
Probably Il will extend yet further IN
the future.
German Railways Fcdcra1fzed.
have said that radical changes in
the method or state management are
imminent both in Germany and Bel
gIum. one great change Germany has
made already, in that the railways,
hitherto the property of the separate
states. have now been bought up by
the Reich and are operated as one
single concern. But Germany and Bel
pitlm are both seeking new organiza-
tion in which the railways may possess
a greater measure OF autonomy, with
n budget largely under their own con-
troll separate from the general budget
~ the country. In this they are fol-
lowing precedonts set by Switzerland.
Italy. the Union OF South Africa and
Japan.
A committee on Indian railways re-
ported unanimously In this sense last
year but 50 far the Indian Govern
dealt xith the problem OF railway In
by a different method. The
national railways are managed by a
board OF directors. consisting OF busi-
ness men such as any ordinary COM
mercial company would appoint, and
with similar powers. But the company
has only one shareholder. the Govern
ment and the unanimity of the share
holder may perhaps hereafter, though
IL IL understood not TO have done SO
at present, interfere overmuch with the
discretion Of the directors.
In England and America the railways
have reverted TO private management:
under conditions radically changed. In
Great Britain the fifty separate com
panies working their own lines. and the
stlll larger number OF companies own
ing railways worked by others, are be-
ing compulsoriiy amalgamated into four
group companies. The United States
transportatioQ act. 1920, also contem-
plates similar scheme OF consolidation.
but so far only by voluntary action.
And there is another interesting dir
ference The English act. In line with