New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-03-25
~ orEBWORKED EXPLANATION.

The Erie Railroads announcement that it will
abandon work on improvements in New York
State because Of the pending Public Utilities
bill is in accordance with the present practice
of railroads To blame it on hostile legislation"
If investors demand more than the usual rate of
interest ON a railroads bonds it is because the
investing public is frightened by hostile legis-
lation." If railway stocks collapse in the mar
ket. which usually means that investors are
looking for a larger return on their money than
current quotations afford, it is because Of 'hos-
tile legislation" The Bank Of France has just
advanced its interest rate. OF course it is
hostile railroad legislation" that did it! Lon
don is averse 10 letting the New York market
have gold 10 be sure. who would expect il TO
in face OF hostile legislation?
In all seriousness hostile legislation eX-
plains too much. The boyle will soon become
laughing stock il il is paraded so often. No
one depores really hostile legislation against the
railroads more than does The Tribune, and no
one has been prOmpter TO condemn it, but We
think the current explanation Of almost every
thing under the sun has been badly overwOrked.
As we have pointed ont before. the retrenchment
of railroad enterprises began prior 20 the period
Of state legislation regarding railroads and ut
that time the reasonable and real explanation
was given that in the existing state Of the mar
tageously for use in projected improvements.
Dear money is a worldwide market condition.
If the legislatures Of Kansas Nebraska, Missouri
and other states have given the money power
a nightmare the world over. they may feel quite
self-cOmplacent in the contemplation Of their
authority and influence
When, as in the Fries announcement the
Public Utilities bill is classed as hostile lcgis-
lation" the public is likely to question whether
the railroads are any more ingenious in their
estimate of what constitutes hostile Iegisla-
ton than they are in their statement of the
reasons for prudent and perhaps necessary re-
trenchments. The Public Utilities bin may be
found on full discussion TO be in need OF a few
amendments: but it IS not hostile In intent. nor
would it be so in operation. 1t would not ham
per or restrict the proper and legitimate de-
velopment Of any industry. Much is made In
the Ere's statement of the suggestion that un-
der the utilities bill subsidiary companies
formed for the purpose of constructing the New
York improvements could not after their com
pletioD, be taken over by the Erie That i'm
provements OF the Erie would be IN the public
interest no one would deny, and the bill Is not
drawn to interfere with the public interest The
aim OF the section to which the statement OBJ
YiOusly refers is TO prevent holding companies"
The transfer Of the franchises, rights. road and
stocks of one company TO another is made sub
ject 10 the approval Of the Public Service Com
mission But what commission would be so
blind as 10 block additions to a railroad improv-
ing its facilities to serve the public:
Unreasonable explanations Of railroad 70.
trenchment VIII not deceive and will only serve
TO keep alive public suspicion The true ex-
PLANTATION that money rates the world over are
uniavorable 10 increased outlay, is one which
railroads need not be ashamed or afraid to give
the public. 1t Is not good business to pay too
much for your money. Everybody can under
stand that