Where Democracy is Triumphant.

New Zealand Graphic, Volume XLVIII, Issue 8, 21 August 1912, Page 33

Where Democracy is Triumphant.

By

CHARLES EDWARD RUSSELL.

Switzerland is described as a country where there is no trust, no rebate, no graft, no political boss, no insurance swindle; where public officers perform their duties, and corporations cannot escape publicity; a country free by a graduated income tax from the threat of vast fortunes. The remarkable excellence of Swiss telegraph, telephone, and post-office service, and. the public-school system. Within five years the Swiss railroads have passed from private to Government ownership, without confusion or dissatisfaction.

IF to be in harmony with one’s surroundings, to work and to thrive a little and to rear children, to have liberty and security and be tolerant and self-respect-ing constitute any measure of happiness, then the Swiss are by all odds the happiest people in 'Europe. Such, I think, is the judgment of all observers that have been much among them. You can test it by a simple reference. From every nation in Europe there is emigration; from Switzerland, little or none. At all times about 300,000 Swiss are in foreign countries, learning languages or methods of combining travel with work, but they come home, always they come home. The typical Swiss never thinks of making permanent residence outside of'Switzerland, or, if once thinking so, he changes his mind when he makes trial thereof. And, indeed, life in Switzerland seems on the whole wonderfully sane and comfortable and yielding much to all that share it. Let me not speak disparagingly. Life doubtless seems sane enough in other' places; but here is still a difference. In Switzerland man lives without feudal surveillance or autocratic interferenece. In Switzerland are no disguised police agents slinking behind you in the streets to hear your conversation, or furtively edging toward you at a cafe table, or watching you from corners; and, having had elsewhere some experiences with this snaky tribe, I testify to the blessing of their absence. In Switzerland are no offensive, arrogant army officers to crowd you from the sidewalk. to overawe citizens, and to insult women. In Switzerland is no rampant militarism with its nasty scandals and its iron hand heavy upon the people. Mi Switzerland are no privileged classes, no nobles, no hereditary rulers, no arbitrary enactments, no oppressive taxation, no kings, no kaisers, no aristocracy, real or imitation, no vestige of any government that the people themselves have not created and do not from day to day direct.

Whether we like or dislike the admission, we shall confess, if we know them intimately, that the Swiss fare exceedingly well. In Switzerland are no trusts, no criminal conspiracies of capital, no “Systems,” no Standard Oil Companies, no advancing and swelling money autocracies to corrupt, the courts and seize the Government, no special enactments for favoured speculators, no purchased elections, no political bosses, no crooked Congressmen, no greasy Sen-

ators elected by the railroad companies, no public officers maintained by thieving corporations, no Aldriches, no Depews, no Platts, no Forakers, no persons that in the least resemble this precious crew. In Switzerland is no gang of public plunderers operating under the shield of the Government, no theft of the public lands, no exchange of campaign subscriptions for Government favours, no John D. Rockefeller, no H. 11. Rogers,

no Ogden Armour, no Pierpont Morgan —on a great scale or a small is none of these nor likely to be. Finally, in Switzerland is no menace that the country’s resources will be absorbed by a few individuals, no tremendous threat of the accumulative power of great for-

tunes. It is no wonder that the Swiss comes home. And yet Switzerland should be confronted with all of our problems. It is an industrial country; it carries on most of the honest industries that we have, and with some of them does better than we. It is a business country; it has manufactures and commerce. It is a country of a "mixed population"; its public business is transacted in three languages. It is a country of great enterprises and undertakings, some of them greater than ours. And yet I cannot deny that the Swiss have found a way

to do these things without making a mess of them and to maintain a republic without dragging it in the mire. In Switzerland is as much interest in politics as in America, and elections are more frequent. In Switzerland political parties are as sharply differentiated as ours and as closely matched. In Switzerland is no such thing as a political boss, no municipal corruption, no

franchise-stealing, no bribery, no boolling, no "big mitt,” and no graft. They do not think much of "ruling” in Switzerland, nor much of the idea of divinely gifted intellects. All are great men in Switzerland, and one is as great and as divinely gifted as another. To the Swiss mind the great men are those that do something in science or literature, like Agassiz or de Saussure; but they hav particular fancy to be “ruled” by anybody, however great. The only rulers of Switzerland are the Swiss people. The Swiss conception of a public office seems equally odd. Certain men are hired to do what the Swiss people tell them to do. That is all. If he were put into office to prosecute public thieves he would proceed to prosecute them. They might be some of the best fellows in the world, and great friends of his party, and otherwise admirable; he would plod on and prosecute them. And he would convict them. And they would be sentenced to prison. And there would be no new trials, no reversals, no stays, no delays. Once condemned, the criminals would go to prison and remain there until their sentences expired, and meantime fare exactly like any other thieves. Ami that seems to be one good reason why there are no public thieves in Switzerland. Thieving is not a healthful occupation there; people do not yearn for it. Democratic Government. The Government of Switzerland is the most democratic in the world. The Swiss people manage their own affairs in their own way. as seems good to them, and without regard to any other consideration. No law is on the Swiss

statute books that a majority of the Swiss people do not wish to have there. There is no authority in Switzerland bin the decision of the Swiss people, and no court can interfere with that decision. No man holds an elective office in Switzerland without the clear warrant of a majority of the people, and no niov» ment is made by the Swiss Government because it is wise or politic, or for anv other reason than because it is the will of the plain common people of the country. The situation in such a country seems worth careful attention. The population of Switzerland is 3,425,0011. Suffrage is universal. At any time a certain number of citizens (valving from 30,000 to 50.000 under different' conditions) can suggest to their countrvmen anything that pleases them or does not please them, any law they wish to have passed or repealed, anything they want the 'Government to do or not to do. Whereupon the people express then opinion on the matter, and as the majority thinks, so becomes the Jaw or so performs the Government. Certain classes of laws must be submitted to such a popular vote before they become operative; all laws van be submitted at anv time the public desires to vote upon them. W'hat is true, in this respect, of Switz erland as a whole is trm' of each of the twenty-two cantons in its separate affaiis. Ant act of any cantonal government can be overturned at any time; any cantonal government can be instructed at any time to do anything a majority of the people wish it to do. I hrougli the operation of the people's right known as the Initiative, a small percentage <d the citizens sign a petition demanding that a question be submitted to the test of a popular vote. Thereupon the Government has mi choice, within a specified time it must submit the question, whatever that may be. This direct submission of a question to the people is called the Referendum. Everywhere in Switzerland these two instruments of direct legislation work in small matters and in great. As no man can assume to deliver to the corporations any legislation for their benefit, the |>eople being likely at anv time to upset it. there is no room for a political boss in Switzerland. It is only the corporations that- make and support bosses. Of course this system makes many elections, which, on the authoritv of the wise, is said to be an evil. Switzerland takes her elections easily; she has mild attacks. The Swiss makes up his mind about the question at issue, deposits his vote, and goes about his business. Switzerland in the throes of an elect-ion contest is like Switzerland at any time. The throes are indiscernible. The people are so well accustomed to deciding questions of government that voting seems to them much like eating their breakfasts; t hey do it and proceed to other matters. We may safely conclude that the first reason why the Swiss fare well in their affairs is that the Government is strictly of their own making: if there is any thing they do not like they can have it remedied quickly ami radically. They know- at all times that the conditions in which t-hev live have been marie bv themselves and exist only by their sanction. Nothing is forced upon them. They hue nt all times in their hands a machine mobile, swift, and efficient bv which

•they ran work reforms and effect changes. ’rhe next reason seems to be that their system of taxation has elements that make for the general welfare. It is far from a (perfect system, but it seems to have merits. Unfortunately it differs somewhat in the different States (or cantons) and the differences are perplexing to the foreigner. But in most of the cantons the principle is this: The tax is levied upon incomes. Every person in receipt of £2O a year or more pays for the support of the Government. If the income is £2O, he pays lAd a year for every £4 of income. If the income is more the rate is increased until on an income of £2OO a year the citizen pays 13/ for (‘very £2O he receives. You can see that this system tends materially to discouraged the process of building gigantic fortunes. Before the fortune could become gigantic I lie tax rate would amount to something like Confiscation.

The next reason why the Swiss fare well is that their .public-school system is probably the best in the world, and with them public school education is practically compulsory. You can send your child to a private school (in some cantons) if you insist upon so doing, but the

face of the Government and the force of public opinion are sternly against the practise. In the canton of Solothurn private schools are absolutely forbid-

den. In other cantons a private school pupil must secure a formal permit from the local authorities, and in some cantons he must ipay a charge to the public funds. The idea is that the public

schools are good enough for all, that rich and poor are to meet there on even terms, that the pu'blie school is the nursery of democracy and patriorism; above all, that democracy is th? life-blood and strength and -very soul of the 'Republic, and the Republic is Switzerland and without the Republic Switzerland is nothing. Education is a serious matter in Switzerland. A parent must send his children to school or go himself to gaol. They kept 'a (Seventh-IDay Adventist in gaol for two years because he refused to let his child attend school on Saturdays. As it then seemed likely he would spend

the rest of his life in 'a cell, he surrendered. Switzerland spends £2.200.000 a year on its schools; its population is .3.425.000. If it were not for the few people that live in remote inaccessible mountain regions there Would be no such thing -as

an illiterate Swiss. The army examination's show only 24 in 10.000* unable to read, and these are always the scattered dwellers on lonely mountain peaks. Everything is furnished free in the Swiss schools —books, slates, pens, and paper, drawing instruments, everything

that the student needs at any stage. The schools are under 'strict and regular medical inspection. There are about 000,000 school children. The State maintains 299 trade-schools, 21S housekeeping schools, many agricultural schools. Besides these are the great Federal Poly teehuieum at Zurich and other polytechnic schools maintained by the t'oufederation. Six great nuiveritie's, Bern. Geneva. Basel. Zurich. iJausanne. anil Fribourg. and a college at Neuehatel completes the edudtional scheme. Tuition fees in the Swiss Polytechnic schools are nominal—i£4 a year —and this charge is remitted in the case of po’or students. More 'than that, there is a State funk! to defray the expenses of the impecunious. To such the authorities say:—'“Here are certain sums of money to be given to you in your school bourse. When you leave this institution you will begin to make your way in the world. You ought then to re-

gard this money as a loan and to repay it as you can, so that it may be used to help others situated as you are. But there is no compulsion about it. In practically every ease the money has been repaid. The next reason why the Swiss do so

well is that their Government is con ducted solely for their benefit and not to exploit individual fortunes. Moreover, it has never occurred toi the Swiss that their Government should assist trailie by placing obstacles in its way. In Switzerland you can send through the mails a. house and lot or a million tons of pig iron if you please and will pay the postage. The Government does not care how much you send: send all you like; the more the lietter. The Government will despatch wagons for your pig iron anywhere you wish, and at the other end of the line it will deliver wherever you s'ay, and the transit will be quick and safe. Or, if you wish, the Government will transport the iron and collect your bill for it from the purchaser and deliver the money to you at your house, or your office, or your hotel. Or if you owe money and wish to pay it. in your own town or any other, you can give the

money to the post-office and it will deliver it to your debtor wherever he is and bring you a receipt. If you live in the country you can pay the money to the letter-carrier and he will attend to the payment. If you wish to forward your baggage, perhaps in advance of your journey, the post-office sends for it. and when you reach your destination your luggage awaits you at your house or hotel. Whether one trunk or fifty makes no dillerence. The sums you pay for this admirable service are I have sent a box weighing twenty pounds halfway across Switzerland for (><!., the postal officers calling for and delivering it. On a package weighing one and onetenth pounds you pay lAd.; up to fivq and one-half pounds, 2Ad.; to eleven pounds, 4d.; to twenty-two pounds, 7(1.; to thirty-three pound's, KM.; to fortyfour pounds, 1/3. These rates apply between any two post-offices in Switzerland. For packages weighing more than forty-four pounds, there* .are rates by the distance, varying from 3d. to 1/ for every eleven pounds.

This same Government operates all the telephones in Switzerland—for the convenience and benefit of the people. The charge for a telephone in Switzerland is £1 12/ a year, and Jd. for each call within the city or district in which you live. For long-distance telephoning the charges are from IJd. to “Ad., according to distance, the latter being the highest charge. Telephones are very common in Switzerland. The service is as remarkable for its smooth excellence as for its

cheapness. This Government also operates thi; telegraph system—for the public benefit

—maintaining what is said to be the best telegraph service in the world. In proportion to the population, Switzerland lias more miles of line and, I think, more) offices than any other country. You can send a telegram .anywhere in Switzerland for 3d. and id. a word. You can put postage-stamps on a telegram and drop it into a post-office or a letter-box and you do not have to think of it again; it will lie forwarded promptly. The Swiss post-office, by the way, is highly praised by experts.

This Government, also, will not grant a franchise to any public enterprise except with the provision that after a lapse of years the State may purchase tile undertaking if it shall see fit. In this way most of the street-car lines in Swiss cities have gone to the municipalities, and those still in private hands will eventually pass into public ownership. Everything done by the Swiss Government is done out in the daylight; they can know all about it if they wish. And the Government makes sure that if it practises no hugger-mugger itself it allows no one else to practise huggermugger either. Its hand is upon every corporation, big or little, public or private, that transacts a dollar's worth of business in Switzerland. Every Swiss corporation must publish at regular in tervals in each year a detailed and exact statement of its condition, th<) amount of business it has transacted. its profits and the disposition thereof- all in plain black and white. The penalties for

juggling with the figures are such that the corporations do not dare to lie; for

in Switzerland no distinctions are drawn between corporation rascality and individual rascality, and the officers are held personally responsible for the corporation's nets. The Government provides an official Jieriodical for these reports; no stock company can escape its columns. Moreover, a corporation in Switzerland has no chance to play tricks on its stockholders. Any two stockholders can at any time demand to see the books or know anything they wish to know about the concern. If a corporation should refuse the information, the stockholders would go into court ami the court would in an hour have the Whole thing into the sunlight and some of its officers on the road to jail. Trusts and “Systems” are impossible in Switzerland, not alone because of this fatal publicity, but because stock-water ing and stock-kiting arc practically prevented. A corporation that desires Io increase its capital stock must give due notice by publication and then bring the project before an open meeting of the

stockholders. As the condition of the company is a matter of open record any unjustifiable increase is instantly detected and can l>e stopped. Insurance scandals and swindles could never occur in Switzerland. This Government looks upon insurance as a thing vitally concerning most of its citizens and to be watched lest the public interests suffer, 'nierefore. it keeps the insurance com|MUiie.s under incessant supervision and inspection. They must show what they do with their money, and if they fall to fooling with their reserves ami surpluses, out they go from Switzerland. Foreign insurance companies doing business in Switzerland must make regular returns of ail the policies they issue and invest a certain proportion of the total in Swiss property, ami this property the Government is prepared to confiscate at any time for the benefit of tin* policyholders. Again, this Government does not allow gentlemen to make great fortunes by selling, things unlit for food poisoned meat, for instance'. No Beet Trust could ever exist in Switzerland, nor any private interference with the food-supply, fey the simple reason that the Government does all the slaughtering in its own slaughter-houses under its own sanitary supervision. No private person is allowed to slaughter animals for food. At least they know, when they sit down to dinner, that they are not. to ea*t cancer germs, nor infected pork, nor the flesh of animals that have died natural deaths. The Rebate Problem. The railroads of Switzerland were built by private capital, and until live years ago all were operated by corporations. On January 1. I’9ol, the leading lines, except two. passed into the hands of the Government. This was the result ot a referendum, alt which the vote was the largest ever cast on such an occasion. In IS9I the project of Government purchase had been submitted 'to the people ail'd defeated. Switzerland bad 'then a small national d-eibt. and the country hesitated to create a great one. Moreover, the terms of the proposed purchase seemed unfair. But the feeling in favour of public ownership grew, the new proposal was of if'airer nature, and when the final test came the purchase was carried by a large majority. Since then other great systems have been absorbed. I’he general plan of purchase was to capi'talise the earning power of the railroads mi a 4 per cent basis. As the value is entirely dependent ultimately on earning capacity, this was the only fair hypothesis upon which to proceed. I’he average net (Minings of the preceding years were, therefore, taken. This multiplied by 25 would (determine the rapitalisadion which would earn 4 per emit. I'he sum total for the roads involved. by this method of vah illation, was about £37.200.0911. I'he railroad companies, profitable enterprises, were

not partial to surrendering their property, and objected to the details of the plan. Negotiations consumed some months, for the Government seemed desirous to be .fair and to listen 'to all representations. In the end, the general plan, as above outlined, was offered as the ultimatum, though somewhat modified by varying conditions. Having fixed upon the purchase price, the current assets were utilised to offset the current liabilities and funded or fixed debt. Whatever liabilities remained, which must be met pound for pound, were Idedueted from the purchase price. The balance, naturally, belonged to the stockholders, -ami (was distributed td them pro rata in federal bonds. Thus, in the ease of the Swiss Central Railroad. the purchase price, 25 times the average net earnings, was £7,700,000. After deducting the current assets from the company’s fixed liabilities,

there still remained an indebtedness of £5.280.000, which was idedueted from the purchase price, leaving fol’ the stockholders an equity of £2.020.000. whieh was distributed among them in federal annuity bonds. These bonds run for 20 vears and are then redeemable or may be continued as the Government prefers, lite face value of the company’s shares was £2O. By the purchase arrangement the bonds arc to tie redeemed at £3O. on which the interest they bear amounts to -I per cent. The first purchase proposal, rejected at a former referendum, would have netted the shareholders £4O a share. The net earnings of the road more than provide for the interest. the bargain seems not to have been particularly hard, although some of the roads had been paying for years 4 to 0 per eent dividends. They were allowed to share among their stockholders all

their surplus funds, undivided (profits, and reserves, and it was stipulated that in no case should the purchase price be less than the amount actually and legitimately invested in the railroad. The Government then took over the rollingstock and appurtenances at an appraisement of their actual value, and the

transaction was complete. The Govern ment's investment was £40,000,000.

As 'to the success of Government ownership of railroads in Switzerland, I have, found (but one opinion, though there may

be others—in minute quantities. The Swiss believe they have reaped solidly from their bargain. Their railroad service has been increased and extended; about 10 per cent more trains are run. Rates, passenger and freight, have been

reduced, for the Government took the lowest rate in force anywhere on any of the railroads and made that the standard rate for all the railroads, a

reduction of about 4 per vent. The quality of the service has been bettered, a lot of old rolling-stock has ibeen thrown upon the junk-heap, and new ears and new locomotives built in place thereof. Road-beds, track's, and stations have been replaced and rebuilt. When the Government 'bought the. roads most of them were single-itraeked; it is engaged in doulble-traeking all the important lines. New kinds of reduced-fare tickets have been introduced. The system has .been unified. New connect ions have been established. The machine has reVolved with exceeding smoothness. Moreover, the investment seems to be profitable. I’he expenditures required to put the lines into good condition have been large, but they have been met out. of the profits of operation. More than £OO.OOO has been put .aside every year for the sinking-fund to cover the pur-

chase price. The interest on the bonds has Ibeen provided. With, two more years of necessary improvements and extensions out of the way, the railroads promise merchantable returns to the publie treasury. At the same time wages have been increased ami more men are employed. All employees have now one day of rest in seven, annual holidays, sick and disabled benefits, increased pay with length of service up to certain limits, and pensions when they are retired. If they lose their lives in the service, their widows and children receive pensions. Finally, the Government has enforced a rule that no man shall work more than ten and a-'half hours in twenty-four. Because of the railroad conditions only, no trust could ever make headway in Switzerland. Oppressive trusts are 'built through rebates, discriminations, and special privileges granted 'by railroads. There are no rebates, discriminations, nor special privileges in Switzerland. In Switzerland a man 'buys transportation exactly as we buy postagestamps. It makes no difference who the purchaser is, rich or poor, good fellow or bad, friend of mine or enemy, campaign subscriber or not, manufacturer or daylabourer, he gets exactly tbe .same rate always, invariably, inflexibly the same. There are three classifications in the Swiss service—package-freight, half carloads, and earloads; and these classifications are the same 'for all shippers at all times with one carload or one million.

Railroad ownership on a large scale is an experiment in Switzerland. The other features of Swiss life I have described have long ceased to lx> experiments and become demonstrated facts. Beyond question they do well for Switzerland; in. fact, they comprise the smooth success of this unique Government. If any one seeks the heart of the Swiss achievement it is easily found. The Swiss have held fast to their democratic faith, and in .Switzerland the plain every-day people are the unquestioned lords of the land.

To be sure it is a small country—--3,425.000 inhabitants, 25,825 square miles. Yet the main question its not the size of a rtJiin'trv. but whether it has succeed-

ed in establishing good government, whether it has in any degree secured the liberty, happiness, safety, welfare, and intellectual progress of its people, whether it has protected them against greed and arbitrary power. And in these res,peets the Government of Switzerland is without a peer in Europe. Switzerland lias prior people; also it has rich. Whoever looks here for a .soln tion of the problem of superfluity and privation must take it iwith many allowances. But the poor are not often very poor, the ridli are not very rich; 'the utmost extremes are nearer together than in any other land of my knowledge, and between dwells an uneipialed percentage of those upon whom the burden of life is easy, who leave enough and somewhat to spare.