New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-08-13
PATIRO1D REFORM NEEDED.

RAILROAD HEIORM NEEDFD
For twenty-five years we have been building
railroads In this country with n rapidity out OF
all proportion to the country's growth ana MA
tcra Development and rcckleSsnesS OF 'A-
pcnditllre only 10 be accounted Tor upon the
theory that all men had forgotten The certainty
of payday. In the sackcloth OF our receiver
ships and the ashes Of our bankruptcies we ma!
rs well confess that II has been a twenty-five
years debauch: a quarter Of 4 century OF ioaii
and hZz fume and froih. glitter ana glare Wis
Ionary schemes and bcwlldering Illusions; OF
building railroads that carry nothing Dnt mort
cages. and piling up In bank vaults bond issues
that have about as much value and Significance
rs the blue and white chips Of last nights
poker game We are awakening from 1t Win
something Of headache. And now what
Cocktails and iii 'em up again? Or confes-
sion and turn new leaf? That Is the question
which confronts the railway managers to-day.
They have not only been building railroads into
empty space when they were not needed ana
there was no business for them, but by making
n show of business, through freight charges on
thcIr own construction materials by overchargca
and rebates and all sorts OF bookkeeping jug
clcrv. they have deceived the public when they
were pcrs,Iaded 10 buy their bonds. Th"S
things are now notorious. They have brought
all railway management into dsrcputc ana
many Of our railway securities into discredit.
In the breaking up and reorganization or inc
great railroad systems that reach to the racine
Coast the question Is 10 be met whether the
crookedncsS which has been concealed IN the IN
tricaclcs Of bookkeeping or covered mp in the
mauipulation Of traffic contracts and rate rcgu-
la;ions is 10 be continued NE opportunity
embraced 10 strike ont in a new direction and
by frank and open handed methods regain pub
lie confidence.
The chapter Of Union Pacific which we pub
lish today is of interest as illustrating the In
capaci,y Of Congress 10 deal with concrete facts
in the prosecution Of business enterprises. or
lcclslatc intclligcnily and effectively upon the
concerns Of a corporation Of It's own creation.
II Is also Of interest an exposition of some or
fine methods which have been thought necessary
by railway managers 10 the successful prosccu
t,on of their enterprises They are quite In
line. though different in character. with those
which appear TO have been in use on the A'chi-
son system The intent in both cases was 10
keep from the public facts which the public had
a right 10 know. In tho case " the Union IA
ciAc the wrechcd laundering 81 Congress In
irving to tie rs hands might he held In the
,rhics II the business world 10 be sufficient
excuse for the conccalmcn's. cvaslons and con
tradictlons I'm which II involved itself with the
Oregon Short Line. The rigid moralst VIII
harlly accept H. In his view nothing in the
form OF misrepresentation Is Justified or honest
even when the misrepresentation Is OF that
negative sort that consists merely IN Keeping
something out Of sight, knowledge ~ which Is
essential to a Just Judgment. more general
justification would be- that In all III" MIDDLE of
transactions between the parent and branch
lines nothing was done that was not In perfect
consonance with current practices and the
methods everywhere In vogue. These managers
were certainly no worse and perhaps no better
than the rest.
We have already said. and repeat II now. that
In view Of the general distrust with which most
OF our railway securities are viewed M home
and abroad. on account ~ the sharp practices Of
managers and the tricks OF accountants. II stands
the managers themselves In hand 10 take some
concerted action 10 rehabiltatc themselves and
reestablIsh the credit Of their corporations. Is
there any better way than by throwing open
the books OF the railroad companies 80 that
there shall not be hereafter any ground Of com
plant by any investor In their stocks or bonds
that he was deceived by the misrepresentation
Of the managers or the croDkedncss Of the ac-
counts? There never was a better time 10 In
aug,irate Il reform. A reform which shall be
radical and permanent A reform which shall
make an end of the sharp practices by which
rival managers outwit each other, violate law,
rig the market and impose on public confidence.
reform which shall forbid gentlemen" after
entering into "gentlcmens agreement" from
putting premium on the traffic managing tai.
ent that can most surely dodge the agreement
the tylers OF the doors Of the offices. and the
fingers off the lips Of bookkcepers and account
ants; do away with the grips, passwords, coun-
tersigns and all the frccmasonry OF the craft Of
managers, close the suspense accounts. abol-
ish rebates and shut down all the costly ma
evasion. reform in short which will pay
fair price for honesty. instead Of a premium for
dextrous deception. and give TO every railroad
bond the credit and currency Of gentlcmans
word. This is possible. Why not try It?
We are prepared TO hear that this sort OF
talk Is calculated only to inJurc The already suf
fcring credit OF railroad securities We do not
believe 1t. We have been travelling twenty
five years In one direction and at the end Of It
find ourselves foundcring In n morass Of re-
ccverships. Let us bout ship and go on another
tack.
THE AMERICAN ASSOCIATION