The Washington herald., 1906-11-19
Railroads at the South

Few railroad managers in the United
States are the intellectual equals of sam
uel Spencer, president Of the Southern
Railway Company None Of them knows
the general business and industrial con-
|ditions of the South as well as he. Fav-
ing devoted the best years of his life IN
practical study Of these conditions ba is
admirably prepared TO speak inteHfgentIv
and authoritatively Of them.
In speech delivered before the Ala
eama Agricultural Association at Mont
gomery last month. Mr.. Spencer made an
interesting array Of facts concerning the
lpost-bellum development Of the Soutb--.
development that is little short Of the mar
veious, and unsurpassed by that Of any
sother portion Of the world in the mast
thirty years. While. of course. the main
object Of Mr.. Spencer's address was 70
correct some popular misappreheneions re-
ssgarding the relations of the railroads n
public. he incidentally touched 11non
he growth OF the South's business and fte
fapid strides toward the commercial lead
zershtp Of the nation. He showed. for ex-
ample, that the manufacturing nro5ucte
of the South now approximate IN animal
value eighteen hundred million dollars
zRno that while the section Is stiH largely
devoted to agriculture, its products of the
farm are only seventeen hundred millions
annually These figures will undoubtedly
awaken thoughtful men TO not only the
possibilities OF tremendous wealth pro-
#iuction at the South. but to its actuaIi-
ies.
Air- Spencer complains, with apparent
Cstice. that the railroads are not getting
heir due share Of the great prosperity
% the South. It goes without saying. Of
purse. that they have been, and are con
hung TO be, protent factors in the re-
agkable industrial revival and develop-
Of which he speaks; and il would
BAR that short-sighted lawmakers. are
Fiving them Of an opportunity to reap
y fsir reward. With increased prosperity
ave come higher wages and also higher
S Drices for everything the carrier must
puy. Instead of 50 per thousand
feet for bridge and shop lumber in 1856
he cost is now sixteen to twenty dollars
Der thousand; instead Of SIS per ton for
81 #teel rails, the cost in ten years has in
Il Nt-eIG ~ F-vs A4ASANfl4 tA e14.NNy eacn IlT
locomotives, the cost is now from 81. Gao
e $4,000; Instead Of $40 for box cars 2
ecAde ago. the cost is now $500; and so on
throughout the long list Of necessary rail-
#oad purchases. The only article the rail-
Soad has for sale is transportation. The
outherr railroad systems, unlike many OF
hose Of the West. were not given grants
Il land by the government as an induce
TENT for their construction. They were
uilt solely with the capital OF their own
rs For many years all the conditions
Fere uufavorable TO most Of them earn
ag profits. and many Of them were for a
png time operated at a loss to their own
e. The result has been that loans at
eavy interest have had TO be procured
prevent bankruptcy. In the case Of
aiiroads. loans take the form OF bond
sues. which merely are mortgages upon
le property. The interest rate has not
scllned proportionately with the IN
-eased earning power of the roads and
be rate OF transportation has been con-
antly declining. This presents a situa-
on that requires an unusually high order
ability TO cope with. and the managers
Southern railroads, therefore. are. and
We had to be. men OF marked financial
ID business astuteness, or the properties