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What are the Objections?

There are three main objections urged by the spokesmen of the present system against the State acquisition of the railways. They

are:

(1) That the service will be inefficient.

(2) That there will be a great probability of a general strike. (3) That it will lead to political corruption.

The author of Railway Nationalization has dealt at length with and effectively disposed of these objections. With regard to the first, he points to the greater efficiency of the State as compared with the private lines in the same countries. He also points out that in the acquisition of the railways by the State there is no idea of staffing them with amateurs and political tide-waiters, but that the existing practical staff will be utilized. With regard to the second, he shows that strikes are not accidental, but are due to unjust treatment, and that the need for them will be reduced to zero by the more humane treatment of the railway employees under State ownership. As to the third, he points to the political jobbery involved in the 140 definite railway interest men now in Parliament, voting for and protecting their respective companies as against the commonwealth, and further points out that the Post Office, ever subject to the light of publicity, has been practically free from scandal and corruption, which cannot be said for our present railway system.

Terms of Purchase.

The terms under which the State can compulsorily acquire the railways from the present companies are fixed by Mr. Gladstone's Act of 1844. This provides that the price payable shall be twentyfive years' purchase of "the annual divisible profits, estimated on the average of the three next preceding years."

Let us see what sort of a bargain this will mean for the Irish railways. The average annual divisible profit for the three years ending 1898 amounted to £1,521,717. Twenty-five years' purchase of this will give £38,042,925 as the price of acquisition by the State. This is just £1,300,000 less than the paid-up capital value of all the Irish railways. The Government would be easily able to get their State Railway Stocks taken up at of 2 per cent. But against this, a big saving in working expenses, consequent upon unity of management, would be effected. A late manager of one of the English railways has estimated this saving at 20 per cent. This will give us an annual saving of 414,000. Thus :

Present profits

Saving by unity of management ..

Less annual interest of 2 per cent. on Govern-
ment railway stock of £38,042,925 ....

£1,521,000

414,000

£1,935,000

951,000

£984,000

706,000

Still leaving

£278,000

Leaving a net annual profit of

With this sum, goods rates and passenger fares
could be reduced by 20 per cent.

to form the nucleus of a sinking fund, and to improve the conditions. of the Irish railway servants. Of course, the reduction in goods rates and fares would soon more than recoup itself in increased traffic.

It should be clearly borne in mind that there will be no need to raise a single halfpenny of the purchase-money by taxation. The process will be one of simple conversion. Upon a given day a State scrip will be substituted for the existing stock certificate. If shareholders desire to have cash they will simply sell the Government scrip as they sell consols to-day.*

Conclusion.

It will, therefore, be seen that if the Government can be induced to put Mr. Gladstone's Act into operation, and thereby exercise their express right to buy out the Irish Railways, an excellent bargain can be made for the nation. With goods rates reduced, passenger fares made reasonable, and the more humane treatment of the railway workers, we may look for smiling prosperity in districts and trades that are now suffering from depression, largely because of the heavy burdens they have to bear in extortionate transit taxes. As far back as 1868 a special Government Commission recommended that the State should take over the Irish Railways. Mr. Field's motion on the subject in the House of Commons recently has called forth a public opinion in favor of the step being taken from nearly all classes and every shade of political opinion. It is evident, therefore, that the times are ripe for this great and beneficent social reform.

[We have to acknowledge our indebtedness to the author of Railway Nationalization, referred to below, for many of the facts used in the preparation of this tract.]

BIBLIOGRAPHY.

THE following works are recommended for a more complete discussion of the State Railway policy :

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"Railway Nationalization," by CLEMENT EDWARDS. Methuen & Co. 2/6. National Railways," by JAMES HOLE. Cassell & Co. 26.

"Irish Railways," by WILLIAM FIELD, M.P. From the Author, Dublin. 2d. "High Rates and Railway Monopoly in Ireland," by WILLIAM FIELD, M.P. Daly, Byers, and Walker, Dublin. 6d.

The Nationalization of Railways," by the Manager of the Mersey Railway. Journal of Commerce, Liverpool. 2d.

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Railways of England," by W. M. ACWORTH.
Railways and Traders," by W. M. ACWORTH.

Murray. 1889. 14.

Murray. 1891.

"Railway Transportation," by A. T. HADLEY. Putnam. 1886.

I-.

I dol. 50 cents.

It is, of course, impossible in a small pamphlet like this, to go exhaustively into the terms of purchase. Such points, therefore, as the provision for arbitration made in the Act of 1844 under certain circumstances, have been left out, and the fact that the Government has advanced several millions to the Irish railway companies, which would naturally be deducted from the price paid.

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The Irish Revolution of 1898.

VERY few Irishmen have yet realized that in the year 1898 a change was made in the government of Ireland greater than that made by many famous revolutions. Up to that date the mass of the Irish people had no more power over the local government of their own country than over the government of Russia. In that year, at one blow, the Local Government Act swept away the old aristocratic and oligarchical authorities, and substituted a system of government more popular and democratic than that enjoyed by Frenchmen under their Republic.

The Old and the New.

Let us contrast the old governing bodies with the new. Before 1898, the Irish Counties were governed by Grand Juries. Each Grand Jury was chosen by the Sheriff, who was appointed by the Lord Lieutenant. The people had nothing to do with it: the Sheriff might select whom he pleased, except that he had to select from each barony one Juror holding freehold land worth £50, or leasehold land worth £100.

As the Grand Jury met only twice a year, most of the real work was done by the Boards of Guardians of the Poor Law Unions. The people had hardly more voice in the election of these Boards than in the selection of the Grand Juries, because half the Guardians were Justices of the Peace, sitting by right of their office, without any election at all; and the other half, though elected by vote, were chosen by the large property owners under a system of plural voting which gave many of them six votes apiece, and under which it was possible for one rich man to have as many as thirty-six votes.

All that is done away with now. County government will be carried on in future by County Councils and District Councils, elected just as Members of Parliament are. Every ratepayer, every occupier and lodger, whether rated or not, has a vote in the election of these Councils; and no man, however rich he may be, has more than one vote. Peers can vote and women can vote. Nothing is left of the old powers of the Grand Juries, though they were allowed to nominate three members to the first Councils elected, to instruct the new bodies in the routine of County business. In future an Irish Grand Jury will be no more than an English one has been for the last two hundred years: that is, a committee to decide whether persons accused of crime shall be put to their trial or not. Outside the towns, the old Guardians are gone; and the District Councillors act as Guardians of the Poor in their stead. It now rests with the Irish nation to see that the new County government by the people is better than the old County government by the Castle and the landed gentry.

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