ompensation for their services, it must be evident
that what would be a fair compensation for the same or similar services
to a large, well-organized, well-regulated and well-managed company
cannot be sufficient compensation to an individual carrier or a small
company, whose expenses will always be comparatively larger than those
of its better-equipped rival. Monopoly and extortion need not
necessarily be synonymous. In fact, States and municipalities in their
public works often prefer monopoly to competition as the cheaper of the
two. Nevertheless, should it ever be found that monopolies cannot be
reconciled with justice and economy, a return to the first principles of
railroading may become advisable.

_3. State ownership and management._

A number of European states, notably Prussia, France and Belgium, as
well as Australia, British India and the British colonies in Southern
Africa, have adopted government ownership of railroads. The motives
which led to this step in the various countries differ greatly. While in
Europe military and political considerations predominated, in Africa and
Australia it was more the want of private capital and energy which led
the government to engage in railroad enterprises. There has in most of
these states been a desire to avoid the evils usually connected with
private management. The experiment of state ownership and management of
railroads has been longest tried in Belgium, and with the best results.
With an excellent service the rates of the Belgian state roads are the
lowest in Europe. Their first-class passenger tariffs are, next to the
zone tariff recently adopted on the state roads of Hungary, the lowest
in the world, and are, for the same distance, lower than those of
American roads. In Prussia the state service, upon the whole, is also
superior to that of private companies, and is probably equal to the
public demand. In France the government only owns and operates less
important lines, but furnishes upon these a more efficient and cheaper
service than private companies would either be able or disposed to
furnish. The oft-repeated statement of those opposed to government
regulation to the contrary notwithstanding, government ownership and
management of railroads is a decided success in Europe, Mr. Jeans says
of state railroads:

"Notwithstanding the superior financial result, the lines
worked by the state are those kept in the best order, and
the working of