TANATION THROUGH MONOPOLY 823 would bear to the profits of the undertakings in question; and while it is probable that there may be some superiority in private industry, there is little doubt that the credit of the larger towns is so good as to enable them to borrow on lower terms than any usual rate of dividend would represent. So far as the question of tax revenue is involved, we may conclude that a somewhat greater yield with less friction would be obtained through public monopoly, but that it is questionable whether this source of taxation is a good one: the benefits to consumers by low rates more than compensating the reduction in public receipts. That public bodies will incline to the latter view is almost certain. Taxation of such essentials as water and light, and of the general conveniences of transport, chiefly used by the poorer and middle classes would run little chance of approval by any popularly elected body. ? STATE R.?LWAs.--Among possible forms of revenue-yielding monopoly, railways under state management must be mentioned, but in practice there is no instance of the application of this method, for most countries retain private lines in more or less competition with state ones; and where, as in ictoria and New South Wales, the whole railway system is state property, no attempt is made to do more than cover the cost of working and interest on capital expenditure. J?s the ictorian Railway Commissioners remark: 'No department controlling state-owned railways can expect to be allowed to realize more than a small margin beyond the amount required to pay the interest upon the capital invested, as immediately that point has been reached the public request and insist upon concessions in rates or increased facilities; both of which are practically an amelioration of taxation.' 2 The foregoing examination of the principal cases in which state monopoly is or may be employed as a fiscal expedient enables some general conclusions to be drawn as to the effects and limits of its working. The first point that is prominently suggested is that monopoly is in fact but one particular method of raising taxes, and that, consequently, its operation should be confined to articles that are well suited as objects of taxation. In practice also it is only productive when confined to commodities; when applied to 'acts,' and more especially to communication and transport, it meets with difficulties, partly from the nature of the object, partly from popular sentiment. The post office, telegraphs, and railways ? This part of the question has been well treated in Mr. Sinclair's Mu?,icipal M?l?e?, received after the paragraphs in the text were in type. pp. 2! 94. ? Victm?r? Year Book, 1887-8, vol. ii. p. 1.?9. See especially Y2
