RURAL PLANNING AND DEVELOPMENT 203 



though, like other railway corporations, it has been hampered in the 

 past by its failure to recognize the folly of uncontrolled speculation in 

 building sub-divisions. In Appendix B particulars are given of the 

 schemes which have been inaugurated in the western provinces by 

 the company. The company has shown its appreciation of the fact 

 that successful settlement of rural territory cannot be secured with- 

 out the combination of co-operation, financial aid to the settler, good 

 facilities for transportation, social intercourse and education. When 

 all these factors are present, and land is properly planned in the first 

 place, and when a careful and economical organization is behind any 

 scheme, success seems to be achieved even if it sometimes is delayed 

 in its consummation. 



But a railway company is a traffic authority and the less it is 

 mixed up in real estate manipulation the better. The interests of real 

 estate and traffic often conflict and many of the difficulties and the 

 bad planning of railway terminals and stations are due to the influence 

 which the real estate departments of railways have had over the 

 traffic departments. 



The action of the United States government in securing the 

 restoration of railway lands to the public shows that in that country 

 it has been realized that the policy of making railroad grants is not 

 to the national advantage where it can be avoided. It is true in a 

 sense that what is to the advantage of railway enterprise may be for 

 the general good, but the responsibilities of a railway company to 

 its shareholders prevents it from being a disinterested public servant. 

 There is undoubtedly an extent of vacant land near to railways which 

 requires to be classified in order to ascertain what government action 

 is necessary to limit speculation and to impose an adequate tax on 

 the holders of idle land. We have also to recognize that all the capi- 

 tal invested in railways, and not merely the portion which has been 

 guaranteed or subscribed by governments, has to be paid for by the public 

 and that every effort should be made to secure that that investment 

 will be reasonably remunerative so far as it has been properly made. 



GOVERNMENT POLICIES AND LAND SPECULATION 



// the government confines its attention to assisting settlers with 

 capital, to subsidizing railways, to affording facilities for the farmer 

 to borrow cheap capital and to promoting co-operation, the effect may be 

 to help the speculator rather than the farmer. When an owner of land 

 spends money on its development before he sells it he is able to provide 

 conditions suitable for the efficient working of the land and to recover 

 for himself some of the benefit of his expenditure. If, however, he 



