SHALL THE GOVERNMENT OWN THE RAILROADS?
Howe, Dr. Frederic C.
Shall the Government Own the Railroads? Some Lessons From Europe By DR. FREDERIC C. HOWE United States Commissioner of Immigration, New York Author of "The City: The Hope of Democracy,"...
...In addition, were the railways removed from private hands the greatest single avenue of private exploitation would be closed to private initiative, and the opportunity for great public service would be so alluring as to entice men of ability to it...
...The chief office is in Berlin...
...Germany's System THE railways in Germany are owned by the individual states, but are regulated but not operated by the Federal council or "Bundesrat," which issues all regulations regarding construction, equipment and operation...
...One great advantage of Government administration is that it turns the se?.rch-light on every transaction of the railways...
...In Germany preference is usually given to men from the army and in Belgium to sons of railway employees who have been killed or become infirm, or who have been on the road for twenty years...
...An esprit de corps was created without parallel in private business, and hundreds of millions of dollars were expended with scarcely a suggestion of graft, corruption or private profit...
...the civil service...
...no one suggests that it he returned to the spoils system...
...This is the first step in an organized, systematic movement for the improvement of Wisconsin soils which is bound to show results in larger yields and higher land values...
...All questions of improvements, contracts, administration and appointments are under the control of this council and the director...
...Associated with him are eight members selected in the same manner...
...In addition to this there are twelve central bureaus, to each of which are assigned particular departments of administration...
...It was built by Government engineers, Government health officers, and Government employees...
...But the experience of those European countries which have tried the plan of State ownership, shows that this nightmare of the individualist exists only in his imagination.—CARL S. VROO-MAN...
...Disabled employees are entitled to a pension under any circumstances...
...Efforts are made to stimulate efficiency among the employees by the granting of premiums to those directly concerned with the running of trains...
...The law declares that the railroad shall be independent of political influence, and at the same time closely identified with the government...
...its employees are animated by a fine enthusiasm...
...We already have a magnificent corps of highly trained engineers in the Army, Navy and Treasury Departments, who successfully coped with the most difficult problems presented by the construction of the Panama Canal...
...Distrust Is Unjustified SUCH distrust of the Federal Gov-ornment is for justified...
...Advancement is by promotion or through distinguished service...
...As a matter of fact, the American postal employee performs a larger number of transactions than does the employee of any other country...
...High officials are required to have a university or technical education before they take examinations for the service...
...It succeeded eminently where private contractors failed...
...At the head of the various state systems is the Minister of Public Works, who has charge of the whole transportation system, both railways and water-ways...
...The Post Office Department, measured by cheapness and service, is one of the most efficient instrumentalities in America...
...Prussia is divided into twenty-one divisions, each one of which is in charge of a chairman with several assistants...
...In Europe the head of the railway administration is a cabinet official...
...and they are courteous, efficient and proud of their positions...
...The transition would probably be effected with as much ease and absence of friction as in Great Britain and France, where the entire railway systems were transferred to state control over night, without a break in their administration...
...FREDERIC C. HOWE United States Commissioner of Immigration, New York Author of "The City: The Hope of Democracy," "Privilege and Democracy in America," "Wisconsin: An Experiment in Democracy," etc...
...there would be constant changes in the higher administrative officials, and in consequence efficiency would be subordinated to political considerations...
...no secret rebates...
...Pensions are granted to all employees after thirty years of service on their arrival at the age of sixty-six, and to any employee whose health has been impaired and who has been in the service at least ten years...
...Insuring Efficiency ON all the state owned railways employees are protected by the classified service...
...In Switzerland THE administration of the Swiss lines is recognized to be very efficient...
...V. The Administration of State Owned Railways MANY, possibly a majority, of the people of America would say: "Yes, theoretically, I believe in government ownership of the railways, hut the administrative problems are so serious...
...The Prussian civil service is superb...
...Were the railways nationalized, the transfer would unquestionably be accomplished as is provided in the measure now before Congress for nationalizing the telegraph and telephone, which provides for the transfer into the classified service of all the existing employees of this industry...
...This will be of incalculable benefit to farmers...
...In Austria THE Austrian railways are directly under the Minister of Railways, who is a member of the cabinet and changes with each administration...
...IT MIGHT as well be admitted at the start, that if the government ownership of railways necessarily involved the enrollment of all the railway employees of the country into an army of political Hessians, ready at all times to obey the dictates of their political superiors, then, unquestionably, the inauguration of such a regime would be fraught with momentous peril to modern democratic institutions...
...no falsified reports...
...The railway policies are determined by the Federal council, while the actual direction is in the hands of a general manager and administrative council...
...He sits in Parliament, makes annual public reports which go into the greatest detail, and is subject to constant heckling in Parliament, so that concealment or evasion is out of the question...
...Engineers must have been thoroughly trained in the same way and have practiced their profession before they are permitted to take the examinations required by the state...
...By this arrangement there is a Federal council which regulates the empire and brings about co-ordinated administration...
...and it is not improbable that the United States would administer the railways as efficiently, if not more efficiently than has any Government of the world...
...No Fear of "Spoils" THAT America could recruit the same high order of talent to the railway service if put under Government ownership is evidenced by the willingness of men to abandon the most lucrative positions to enter cabinet or higher administrative positions when the opportunity is offered to them...
...They are making applications in groups of five or more in almost every instance, which greatly facilitates the work of the field agent and means the examination and analyses and final improvement of much larger areas...
...It is reasonable to suppose that the new conscience in America would insure as high a degree of administrative efficiency in the railroads as in the postal and Panama service...
...Other benefits are state owned cottages which are let at a nominal rental, and the giving of fortnightly free tickets to clerks and shop assistants...
...In France THE French Government railways are controlled by the Minister of Public Works, who is assisted by a general board of approximately 150 members, made up of separate commissions of accounts, engineers, finance and service...
...We are so close to the old days of political corruption and the spoils system that we are not yet ready to trust ourselves...
...The postal service has been classified for years...
...Helping To Improve Wisconsin Soils MORE than 106 requests for field examinations and chemical analyses have been filed with the state soils laboratory at the College of Agriculture, University of Wisconsin, since the first of the year...
...The Panama Canal is another example of business efficiency...
...In Hungary, the chief is a permanent official In Italy THE Italian railways, which have been greatly improved under state ownership, are under the general management of a director appointed by the king on the nomination of the ministry...
...Bad management might imperil the ministry in power, and bring about the angry protests of chambers of commerce, shippers and business men, while the condition of employees is open to easy correction...
...In the next article Mr...
...there is so much danger from the spoils system and the use of the railroads for political purposes, that it would be unsafe to undertake it...
...In addition the public service is alluring men from the universities and technical schools, and is drawing to itself much of the best talent in the nation...
...In addition there is a railway council, and a number of bureaus, to each one of which are assigned certain administrative functions...
...Such is the general attitude of America towards municipal and national ownership...
...The country is divided into five districts, with a director and district council in each...
...Howe will show how state owned and operated railroads in Europe are made to serve the every day needs of the working classes.—Editor's Note...
...Farmers are taking advantage of the clause in the new law which reduces the initial field examination fee for each 160 acres from five dollars where one man applies to three dollars when five or more men in one township apply...
...a responsible minister at the head of the system, local advisory groups who manage certain territory, and representative advisory councils who are closely acquainted with the needs and requirements of the empire...
...All higher officers must have a similar education, after which they serve an apprentice-ship prior to permanent employment All classes of employees, except the lowest grade of laborers, are in...
...In this council the various ministries have representation, as do the chambers of commerce and agricultural societies...
...There are no interlocking directors...
...It would involve adding a million and a half employees to the government service...
...In addition to the twenty-one groups of directors, there are nine advisory councils, to which representatives of commerce and agriculture are appointed in order to link the administration up as closely as possible with the industrial needs of the state...
...In Belgium IN Belgium the railways are in the hands of a responsible Minister of Railways, Posts and Telegraphs...
...By this means Switzerland secures central political control on the one hand, and the decentralization of local operation, schedules and contruction work on the other...
...The danger of the spoils system has long since passed, as are the days when favoritism and graft figured in Government contracts...
...It extends to the railway system...
Vol. 6 • October 1914 • No. 42
