§ 5
In relation to quite a number of large public services it can be shown that even under contemporary conditions Private Ownership does work with an enormous waste and inefficiency. Necessarily it seeks for profit; necessarily it seeks to do as little as possible for as much as possible. The prosperity of all Kent is crippled by a “combine” of two ill-managed and unenterprising railway companies, with no funds for new developments, grinding out an uncertain dividend by clipping expenditure.
I happen to see this organization pretty closely, and I can imagine no State enterprise west of Turkey or Persia presenting even to the passing eye so deplorable a spectacle of ruin and inefficiency. The South-Eastern Company’s estate at Seabrook presents the dreariest spectacle of incompetent development conceivable; one can see its failure three miles away; it is a waste with an embryo slum in one corner protected by an extravagant sea-wall, already partly shattered, from the sea.
To-day (Nov. 4, 1907) the price of the ordinary South-Eastern stock is 65 and its deferred stock 31; of the London, Chatham and Dover ordinary stock 10½; an eloquent testimony to the disheartened state of the owners who now cling reluctantly to this disappointing monopoly. Spite of this impoverishment of the ordinary shareholder, this railway system has evidently paid too much profit in the past for efficiency; the rolling stock is old and ageing—much of it is by modern standards abominable—the trains are infrequent, and the shunting operations at local stations, with insufficient sidings and insufficient staffs, produce a chronic dislocation and unpunctuality in the traffic that is exaggerated by the defects of direction evident even in the very time-tables. The trains are not well planned, the connections with branch lines are often extremely ill managed. The service is bad to its details. It is the exception rather than the rule to find a ticket-office in the morning with change for a five-pound note; and, as a little indication of the spirit of the whole machine, I discovered the other day that the conductors upon the South-Eastern trams at Hythe start their morning with absolutely no change at all. Recently the roof of the station at Charing Cross fell in—through sheer decay…. A whole rich county now stagnates hopelessly under the grip of this sample of private enterprise, towns fail to grow, trade flows sluggishly from point to point. No population in the world would stand such a management as it endures at the hands of the South-Eastern Railway from any responsible public body. Out would go the whole board of managers at the next election. Consider what would have happened if the London County Council had owned Charing Cross Station three years ago. But manifestly there is nothing better to be done under private ownership conditions. The common shareholders are scattered and practically powerless, and their collective aim is, at any expense to the public welfare, to keep the price of the shares from going still lower.
The South-Eastern Railway is only one striking instance of the general unserviceableness of private ownership for public services. Nearly all the British railway companies, in greater or less degree, present now a similar degenerative process. Years of profit-sweating, of high dividends, have left them with old stations, old rolling stock, old staffs, bad habits and diminishing borrowing power. Only a few of these corporations make any attempt to keep pace with invention. It is remarkable now in an epoch of almost universal progress how stagnant the British privately owned railways are. One travels now-a-days if anything with a decrease of comfort from the 1880 accommodation, because of the greater overcrowding; and there has been no general increase of speed, no increase in smooth running, no increase in immunity from accident now for quite a number of years. One travels in a dingy box of a compartment that is too ill-lit at night for reading and full of invincible draughts. In winter the only warmth is too often an insufficient footwarmer of battered tin, for which the passengers fight fiercely with their feet. An observant person cannot fail to be struck—especially if he is returning from travel upon the State railways of Switzerland or Germany—by the shabby-looking porters on so many of our lines—they represent the standard of good clothing for the year 1848 or thereabouts—and by the bleak misery of many of the stations, the universal dirt that electricity might even now abolish. You dare not drop a parcel on any British railway cushion for fear of the cloud of horrible dust you would raise; you have to put it down softly. Consider, too, the congested infrequent suburban trains that ply round any large centre of population, the inefficient goods and parcel distribution that hangs up the trade of the local shopman everywhere. Not only in the arrested standard of comfort, but in the efficiency of working also are our privately owned railways a hopeless discredit to private ownership.
None of them, hampered by their present equipment, are able to adapt themselves readily to the new and better mechanism science produces for them, electric traction, electric lighting and so forth; and it seems to me highly probable that the last steam-engines and the last oil lamps in the world will be found upon the southern railway lines of Great Britain. How can they go on borrowing new capital with their stock at the prices I have quoted, and how can they do anything without new capital? The conception of profit-raising that rules our railways takes rather an altogether different direction; it takes the form of attempts to procure a monopoly even of the minor traffic by resisting the development of light railways, and of keeping the standard of comfort, decency and cleanliness low. As for the vast social ameliorations that could be wrought now, and are urgently needed now, by redistributing population through enhanced and cheapened services scientifically planned, and by an efficient collection and carriage of horticultural and agricultural produce, these things lie outside the philosophy of the Private Owner altogether. They would probably not pay him, and there the matter ends; that they would pay the community enormously, does not for one moment enter into his circle of ideas.
There can be little doubt that in the next decade or so the secular decay and lagging of the British railway services which is inevitable under existing conditions (in speed, in comfort, they have long been distanced by continental lines), the probable increase in accidents due to economically administered permanent ways and ageing stations and bridges, and the ever more perceptible check to British economic development due to this clogging of the circulatory system, will be of immense value to the Socialist propaganda as an object lesson in private ownership. In Italy the thing has already passed its inevitable climax, and the State is now struggling valiantly to put a disorganized, ill-equipped and undisciplined network of railways, the legacy of a period of private enterprise, into tolerable working order.