The Topeka state journal., 1922-11-18
MIR. HowELL's PLAN.

r.. B. Howell, the newly elected SEN
ator from Nebraska. has a solution Of
the railroad problem all his own. Mr..
Howell presumes that "the railroad
capitalists will force the hands" of
the government and make public own
ership a@d operation of railways a
practical question. He admits that
the government knows little about
the railway business" and that its ad-
ventures in that field have been cost
Iy and disappointing. But from these
premis4s he derives the remarkable
conclusion that the federal govern
ment must proceed at once to de
velop knowledge" and, TO this end,
take over one of the great lines and
operate it.
But really It is not necessary for
the United States further to develop
knowledge" of the operation of rail-
roads by government. It can obtain
all the information It needs from
countries that have had experience.
England, France, Belgium and
Canada-they have all had quite
enough of government ownership of
railroads. Accounts have Peen ap-
pearing in the press of the United
States of the sickening experiences
which the first three named have un-
dergone, and ]. L. Payne. former con-
troIler of statistics, Canadian depart
ment of railways and canals. has de-
picted the situation of Canada, where
the people are stunned by the mag
nitude OF the figures involved"
eft correct bookkeeping had been
applied" declares Mr.. Payne, cit is
within the mark to say that the defi-
cIts during the past two years would
have averaged $125.Ooo.o And
this in a country with but 100000
of people. Mr.. Payne presents figures
showing the announced deficits as
follows: 1918. s27,76e.577; 1919,
s47,e93,312; 1920, $67,5o5,o59; 1921,
56,673,sS4. But even these huge
losses are but part OF the TRUTH" he
says. THE figures given do not in
clude fixed charges on the National
Transcontinental.- the Intercolonial,
Bay, the Quebec Bridge nor the
branch lines in the maritime prov1
inces. making up about $500 miles of
lines and covering a capitalization OF
nearly a billion dollars"
The reason for this is that the gov
ernment utterly ignores interest on
capital liability. OF course it does not
by that convenient and unsound
method get rid of such a proper and
genuine charge entirely. The distress
ing story of deficits is not all. In or
der to pay operating shortages, fixed
charges, bolster weak links in the sys-
tenn, provide needed equipment. stan
dardiza effectively built sections, and
maintain the organization set up by
the government, the official records
show that since 1914 over $500, 100000
has been advanced from the Dominion
treasury. This has added to fixed
charges.
To every one who was in close
touch with what was in progress. it
was well known that the construction
of the last 5000 miles of the Canadian
Northern had more to do with votes
to be won than with the transporta-
ton needs of the territory served.
When between 1913 and 1919 ton and
passenger miles fell off. the Canadian
Northern increased its workers by
S,052 or S6.4 per cent With an in
crease in volume OF business of 80 per
cent. 1s17-1920. it increased the num-
ber of employees COS per cent and got
35.1 per cent less service per employe.
There was a decline of 4s.S per cent
in ton and passenger mile efficiency
during the first two years OF public
ownership. The story told by Mr..
Payne is one more answer to the ad-
yocates of government ownership of
railroads.