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r^Tx- ll f: i'M •m •m fc* I iWv'y tju* :-ji l^y. isftl 4 K?-vi V:i5 k& iff N jt ~x^-y'^*yfr rJt T*^.. V- The fourth of a series of 10 articles by Mr. Mills, well-known writer and lecturer, on "New Zealand Before the War." BY WALTER THOMAS MILLS N THE Australasian world rail ways are not only publicly own ed, but the nation itself, after many years of experience, has entirely abandoned the contract system both in constructing the roads and i^ the purchase of roll ing stock and other equipment. Railroads are built at a sav ing of from one-half to two-thirds the cost of their construction under previous private contracts. The rolling stock and the locomotives show a saving of fully 50 per cent. The last American locomotives purchased from privately owned American shops, as compared with locomotives produced in the state-owned shops at home, showed a cost of $400 per ton in the purchased locomotives, as compared with $200 per ton in the cost of production in the state-owned shops. Besides this there has always been shown a very marked difference in the cost of upkeep and in the life of rolling stock, always in favtir of the state-produced equipment. FORESTRY .AND FINANCE ..Xv Tree planting has been undertaken on quite a wide scale. American pines planted more than a quarter of a century ago in South Australia have averaged a growth of 1,000 feet of lumber for each acre, for each year since the planting. -It is claimed in New Zealand that the products of the govern ment forests alone, during the next century, even if no additional plantings are made, would pay off the total national debt, interest and all. The New Zealand debt represented then almost entirely in vestments in productive property. A correspond ing indebtedness in the United States jn proportion to the population would mean an indebtedness of 45 billion dollars. This indicates how great'is the na tional interest in the national forests. In South Australia the government-owned forest is equipped with a sawmill and its products manu factured by the state and made directly available a COAL MINES AND PACKINGHOUSES Throughout both countries state-owned coal mines are in operation. So far, however, they have pro duced coal only for the use of the state-owned fail ways, except that in New Zealand the'state product was sold in the market, but only at prices fixed by privately owned enterprises. The superintendents of the mining plants in both countries have .offered repeatedly to deliver coal for private use at one half the current price charged if permitted to do so. An Australian dairy herd. By having grater power in the government, the farmers and other common people in Australia and New Zealand have'built up their prosperity by state ownership of-marketing facilities to get their products to market cheaply, and by stati banking methods which give money to actual producers without bank profiteering and in larger amounts vY'*v' if,'* 8 available to the, farmer States in Australia and New Zealand Successful in Business Operations for the People-^-Many League Planks in Operation There In South Austra lia the government has built and is operating a plant at the cost of $2,250, 000fc It manufac re a cheese, slaughters and freezes lambs, sorts and packs wool, gorts, grades and packs fruit, puts the state seal on every package and guarantees its contents. ThiS gov ernment ships these to a world. Ah advance payment is made, with a final ac counting directly to the farmers sf or total returns less the cost of the service. Since my return from that country, in New South Wales a $7,000, 000 government plant has undertaken the same sort of service with the same satisfactory results. It has enormously in creased the prices realized by tfie farmers and has at the same time greatly reduced the selling prices to the consumers. A BREAD AND BUTTER QUESTION In New South Wales the government has be come the only grain buyer the grain is stored in state-owned warehouses, shipped over state owned railways, ground in stat£-owned flour mills, baked in state-owned bakeries, and de livered from state-owned shops, with the re-, suit that the farmers have doubled the receipts, for their harvests and the housewives have secured bread, the same quantities as before, at 'one-half 'the previous prices,*and on last report these lower prices for bread had prevailed throughout the war. Quite as remarkable has been the record of achievement in the subdividing of the city lots, building of the streets and sewers, and the con struction of modern homes for working people. A workingman who wishes to obtain one of these homes may make a payment of $50 down and after wards pay in monthly installments at a rate run ning from one-half to two-thirds of what he would be obliged to pay for a rented house with anything like the same accommodations. He would pay out in 25 years, and his home will cost him nothing as compared with paying rent in fact- it is cheaper, by from one-third to one half, for him to buy his home than it is to rent it. 'Si'• In all of these under takings these public en prises hdve resulted in a standard day's work of eight hours. In hazardous or especially disagreeable tasks, like underground work in mud' and water, the, working day is six hours. Trade unioij wages have" been secur ed for-all workers and •at the same time the selling prices to con sumers 'greatly decreas ed. The same is true of pa a re freight rates, and es pecially of excursion rates, with free trans portation r, school chi 1 dren, fertilizers, race, horses, stallions/ FTVE faqb A flock of South Australian sheep. In that state the government slaughters and freezes the lamb and mutton for domestic use and export. It sorts and packs the wool. Other state enterprises lower the cost of various steps in the road from farmer to consumer. The result is that the farmer of South Austra lia gets the world price less much lower costs and without the costs of profiteering and wasteful or unnecessary middlemen. bulls, boars, and members elected to parliament. In every instance the building of railways and wharves, thfe opening of mines, the building of packing houses, flour mills and bakeries, have not only reduced the selling prices, but at the same time these enterprises pay the cost of their own construction,out of their, own earnings, and in this way they cost the nation nothing in fact, as the nation appropriates considerable proportions of the earnings of these enterprises for public purposes,, it is costing the national governments less to build and own and operate these enterprises than it would cost them not to do so. So far as I know these are the only countries iwhich consume the highest grades of their own products and make available for export only the lower grades. It seems to be the only country where the producers are prosperous enough so they .. can afford to do this, and this has been made possi ble only by the publicly owned enterprises. DRAWBACKS TRACEABLE TO PRIVATE OWNERSHIP There are serious evils in connection with these undertakings. Complaints made by unfriendly critics are frequently based on facts, but after four years' residence in the two countries and after following -up any number of such complaints, I found in every instance that they were based on either survivals of old abuses taken over with' the business from previous private owners or on 'the results of private interests still in control of some share of the public service. No one in New Zealand is misled by these com plaints. In every instance it is contended''by the progressive people who are on the ground, that these disadvantages are not because of public ownership, but for- lack of public ownership at some point in the process of public service for in stance, the railways were owned by the state the steamship lines and ferryboats were in private hands. Transportation frequently involves the use of both kinds of shipping service. BUILDING A CITY FOR THE jPEOPLE The evils ^f the transportation system are traceable to the expenses and to the political power of the privately owned steamship com panies. There is no demand whatsoever that the railways shall be turned over to the steam ship companies, but the demand is urgent, and in Australia it has since been accomplished, that the steamship lines be turped_ over to the railways. When the government of New Zealand opened up a state-owned mine at Runanga, the state first of all established a sawmillr Here it produced the timbers for the mine and the lumber for building houses for the miners. The houses were rented at reasonable rates, but both houses and lots were sold to miners and others (Continued on page 14) Astr,