The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-08-03
TALKING SENSE. NOW.

ton of the fact that they have their
head in the lions mouth, and that if
he shuts down upon it the business
they have built up will become unpro-
fitable. In this instance the Southern
Railway is the lions mouth and its re-
fusal or inability to furnish cars has
caused them serious loss and threatens
continued and permanent injury to
their growing business.
AT the banquet, which the Southern
Railway patronized greatly in Decem-
Der, Mr.. Spencer and Director Cox
town showing that it was better for a
town to be served only by the South
ern Railway than by two railroads
Some good people in High Point ac-
copied that statement as ideal. They
think differently now, as the following
article in the High Point Enterprise
shows:
"Mr. Green practically admitted this
morning that the furniture business
here had outgrown the facilities Of the
Southern Railway. He said that 1t
would be an impossibility to equip
enough cars to handle the product
This was a centre shot for our manu-
facturers. They seemed to awake at
once to their position. The light SEEM
ed to blind them for the moment. Is
it possible that the great business of
this hustling town must forever be
dependent on one road and that road
admitting that the business is crowd
ing them too much?
Gentlemen, it would pay US i'm the
end to sell half what we have and get
another road. Our business must be
taken care of. If We prosper
The Enterprise is talking sense now.
High Point needs another railway sys-
tenn 1t would not be bottled up now
if it had the Seaboard the Atlantic
Coast Line or some other good system,
or If tie Interstate Commerce Com
mission had the same power North
Carolina gives to its Corporation Com
mission.
"Why is it the Southern does not
provide the cars for High Point man
ufacturers some reader may ask.
Doesn't it want the business? Is it
not standing i'm its own light in the
long run to refuse necessary accom-
mediation to men who are anxious to
pay it big freights? And is it not in
viting a competitive line by delaying
to provide adequate facilities?
These are very natural questions.
If men who own and direct the South
ern Railways affairs We're the men in
charge Of operating the line, the cars
would have been provided long ago.
The men in the operating department
know that there is need of more cars
and better equipment, but they are
powerless. j. Pierpont Morgan and
the other owners of the Southern are
not practical railroad men; they are
bankers and spectators who make
their fortunes by manipulating rail-
road stocks and bonds and not by OPP
Grating railroads. OF course they
must have the railroad operated, but
they care only to keep it going in such
a way as will turn in most money to
them so they can make a fine showing
of profit and sell the Watered stock al
a handsome profit. About twelve
years ago Morgan undertook to reor-
ganize the old Richmond and Danville
and West Point Terminal companies.
The Southern issued $6O,O0O,0OO OF
preferred stock and $120,000,000 of
common stock. During the past ten
years the took has increase in cash
value $4,000, 900. Inasmuch as most
of the stock represented nothing but
water, the owner of this stock have
pocketed about SIS, 100000 in excess
of the true value of the stock when it
was issued. How did they get that
$75,OO0,O00 on water? Here is the
answer: They charged high freight
and passenger rates, and instead or
using the money thus derived to buy
sufficient equipment to care for the
business of the company, the money
is used to boost uD the watered stock.
While the Morgans are making this
SIS, 900, 900 the men employed to OPP
crate the road are working overtime
trying to make poor and scant equip
ment do double duty.
If J. Pierpont Morgan and associates
were running the road to make it a
regular business and a money maker
for century, they would use the bulk
of earnings to buy more cars and en-
gines, improve the equipment, and
cater to the business of the road. But
their business is floating and selling
and manipulating the oceans Of water
ed stock they have issued. They
wish to put it up high. They will un-
load Therefore for a period, as is
seen, it pays them better to use the
money from excessive freight and pas
senger rates to boom the watered
stock than to buy more equipment.
When they have succeeded In dis
posing of their watered stock to in
nocent purchasers for value, they will
go to the Railroad Commissions and
say: 1--WE have outstanding $180,000,-
900 of stock owned by widows and or
phans and by trustees. We cannot
reduce our transportation charges and
do justice to these stockholders who
had nothing to do with watering the