496 THE POPULAR SCIENCE MONTHLY. 



sired. In the older localities the earlier rule of interference has been 

 gradually withdrawn, as the common commercial law of self-interest 

 has been found to produce the best results ; and as the populations of 

 newer communities have increased, their interests have become more 

 established, and their experiences enlarged, they too tend toward the 

 path followed by the older places. Italy, after an examination of the 

 subject by a special commission, which was continued several years, 

 decided to lease the Government railways to private corporations to 

 operate. Switzerland, upon reviewing the experience of the other 

 states of Europe, declined to exercise the right granted by the charters 

 of the railway companies, that after a certain time the Government 

 might purchase and operate the roads, deciding that it would neither 

 profit the state nor benefit the people.* M. Leon Say says of the Gov- 

 ernment operation of the railways of France, " The failure is complete 

 and irreparable." f And M. de la Gournerie, Inspector-General of the 

 French Corps of Bridges and Highways, concludes a review of the sub- 

 ject of railway rates as follows : " I have sought to combat the widely 

 spread opinion that, in the commercial operation of railroads, everything 

 is artificial ; that instead of observing, we must invent ; that instead 

 of habitually leaving the different interests to react uj)on each other 

 through sujDply and demand, it is necessary to be regulating continu- 

 ally. If vte were certain that the men who manage railroad business 

 would always have a perfect understanding of these questions, my 

 conclusion would be to leave the matter to them entirely ; but the 

 companies enjoy too great power for us to resign ourselves to endure 

 tranquilly the consequences of their errors. I think, then, that the 

 state should preserve its powers, watch attentively, but prescribe lit- 

 tle," X The other countries of Europe have in general gone through 

 similar experiences and arrived at the same conclusions, and, following 

 the enlightened lead of the Railroad Commission of Massachusetts, the 

 tendency in the other States of the American Union is undeniable also 

 in the same direction of laissezfaire. 



In the transaction of trade, exchange is effected, not because one 

 party demands it, but because both believe it to be a benefit. Neither 

 can command what the other considers it his interest to refuse. Trans- 

 portation is limited in the same way by the same requirements. The 

 limit on one side is fixed by capital and is the total cost of all the serv- 

 ice performed. If the roads are not able to secure enough traflSc at 

 prices which will pay the expenses of operation and a fair rate of in- 

 terest on the investment, capital will no longer be invested in their 

 construction. If they persistently fail to earn the ordinary expenses 

 of operation, and so remain a constant tax upon the proprietors, they 

 must ultimately be abandoned. The reduction of the charges can not 



* " nerapatli'3 Journal," London, April 28, 1883, p. 518. 



I " Railway A^p," 1882, p. 735. 



X "llcport of Commissioners of Transportation," California, IST'T-'/S, p. 73. 



