ance of this operation is a deficit of 5,000,000 to 20,000,000 francs.

But how will it be if the state system operate with less favorable results than private companies-an almost certain contingency? The losses might well reach 30,000,000 or even 40,000,000 francs.1

'De Monopole d'Etat. Rapport au Congres de Chambre de Commerce, by M. de Lasteyrie.

CHAPTER XXIV

THE FISCAL MINES OF THE SAAR DISTRICT The Prussian Government Mines.-Decrease of Profits.

Not only railways, but all other state undertakings are exposed to commercial risks. Their profits do not always increase, as is proved by the fiscal mines belonging to the Prussian government. The following tables show the decease in the aggregate in the accounted profits of Prussian mining undertakings:

The enormous falling off after 1905 is readily seen;

the decrease per workman is 48 per cent., compared with the previous period.

A similar decrease is to be noticed in all the mining enterprises except that of salt.

Total

23,297.7 25,935.1 13,284. 15,738.5 16,472.1

The decrease in the profits in government mining ventures is due, above all, to the coal mines of the Saar district.

The following triennial tables show the changes which have taken place since 1900 in the cost and the selling price per ton of the coal from these mines:

The net cost has increased 48 per cent. and the profits have decreased 59 per cent. The budget es'Translator's Note-I have been unable to verify these figures, which appear to be incorrect.

tablished by the Prussian Department of Mines, Foundries, and Salt Works, has been worked out on new principles, such as a distinction between the costs of administration and the expenses of operation, reserves for new installations, current expenses, etc. Miscellaneous expenses, figuring heretofore in the general budget of the Prussian government, although really concerning financial operations, have been carried over to the budget of the Department of Mines, Foundries, and Salt Works. Hence, there is a decrease of 8,859,177 marks in the preliminary estimate of the net profit as compared with the budget of 1911.1

The gross profit upon Prussian fiscal mining enterprises was estimated for 1912 at 18,215,000 francs; the net profit at 5,938,000 francs. It should be explained, however, that a certain amount had been previously deducted for the Academy of Mines at Berlin, as well as for the Geological Institute.

'Circulaire du Comité Houillères, February 10, 1912.

CHAPTER XXV

PUBLIC VERSUS PRIVATE ENTERPRISE

1. A Priori Reasoning Contradicted by Facts. 2. The National Printing Office and the Paul Dupont Printing Company.

3. Naval Construction.

4. Two Piers.-The Telephone Company and the Postoffice.

5. Indemnities for Losses Upon State and Private Railway Systems.

6. Public and Private Electrical Plants in Germany. 7. Other Results in Germany.

8. The Municipal Public Service of Paris.-M. Dausset.Superiority of Private Enterprises.-Benjamin Welton.-Psychology of the Middleman.

9. Reaction Against State Undertakings in New Zealand. 10. Letter of a Citizen of Manchester.-Conduct of Industry and Its Regulation.

1. The partisans of socializing and of municipalizing all sorts of public services never tire of the old refrain that state and municipalities manage enterprises for the good of the service, and not for profit, and that, therefore, we ought to get them at a lower cost. We ought to. Here we have a priori reasoning. The trouble is that such reasoning is constantly contradicted by the facts.

2.

Some years ago the net profit on the National Printing Office of France apparently represented