STATE PARTNERSHIPS

Evening Post, Volume XCIII, Issue 85, 10 April 1917, Page 6

STATE PARTNERSHIPS

In Britain, in quarters where State Socialism used to be anathema and private enterprise sacrosanct, consideration is now being given to the possibilities of Government partnership with private enterprise, the idea being to retain the efficiency of ambitious individuality, subject to the brake of State supervision. If the interest of private enterprise is to be retained, private profit must not be eliminated; " but," say the reformers, "it may be protected and yet curtailed—say 7g per cent, instead of 25." Point is given to tHe argument by the position of the British railways. According' to a writer in the Edinburgh Review, at the outbreak of war the Government agreed with the railway companies to guarantee them their net revenue in 1913, the companies in return to carry Government passengers and goods free of charge. It is calculated that in 1915 the net revenue of 1913 was maintained by ordinary business, and so in that-year the Government got all its railway work done without cost to the taxpayer; but in 1916 "increased wages of railway employees absorbed twelve millions a year, with the result that the Treasury will have • to make good a considerable deficiency. Still, it is likely that the Government's war bargain with the companies will result very favourably to the Government. A question arises, however, as to postwar policy, and this is where the partnership idea comes in. People who fear the political corruption that would result from adding 600,000 railwaymen (and voters) to the national pay roll, involving on tha Exchequer atiew liability of about a thousand millions for the nationalised services, are nevertheless tolerant to the suggestion that " the State should become a shareholder in railway companies or groups of railway companies, and as a shareholder should appoint representatives on to the Board of Management. It would thus have some cower of control over the management, and would be financially interested in the. success of the companies, but political interference would be more dif-■Hcult-tha«~in-the case of. railways -en-. tirely owned and 1 managed by_ th© State." The partnership idea is a com-, promise, but-a. not unpromising one, and ' rather chimes with that " genius for compromise" which has so materially helped the "English race in all departments, except perhaps in the intelligent conduct of military operations.