The Washington herald., 1907-04-23
President Finley Talks on
Railroad Situation.
TENDENCY IN LEGISLATION
Head of Southern Declares Rail-
roads Differently Regarded from
All other Business Undertakings.
AntagORism Being Carried to Point
that VIII Mean Destruction.

Mississippi River 10 the city Of Mem
phis. and declaring that he was in favor
of a most liberal policy of river and har-
Dor Improvement, Mr.. Finley said:
IAN that I ask for the railroads is
fair play and the same active and ag-
gFessive public interest in their welfare
that IS manifested in behalf of water
transportation and all other business en-
terprises contributing to the growth and
prosperity Of the country.
IN some of the States, owing perhaps,
to a failure TO understand the true rela-
tions of the railways to the business Of
their communities and the identity of in
terests between the public and the roads,
there is a tendency 10 regard the rail-
ways as different from all other business
undertakings and as the proper objects OF
burdensOme restriction rather than OF
helpful announcement. This tendency
is being manifested in legislation that
would universally be recognized as de-
structive if applied to any other bust
ness. It has been carried 10 such
lengths that thoughtful business men,
who recognize the Importance Of efficient
transportation agencies TO the success Of
their own business may well consider
what are TO be the final results.
AntagOnism 10 Railroads.
rs antagonism TO railways TO be carried
TO the point that viii destroy the proper
ties, or only 10 the point that viii cripple
them? What will be the inevitable effect
on the general prosperity Of the country
of either Of these degrees of destruction?
These are questions that every business
man should ask himself, and that he
should PROFOUND TO those responsible for
enacting and executing legislation, If
these questions are answered without
prejudice, it viii be found that. in every
case. legislation that goes farther than
proper regulation, cripples every business
interest along the lines of the railways
affected as surely as it cTipples the rail
ways themselves"
Contending that the future growth Of
the South depended. in large measure, on
the attitude OF Southern communities to-
ward railway Development Mr.. Finley
said.
Il cannot conceive that the people of
any locality should deliberately favor
policy that would restrict investments.
but business men win not put their
money in any locality unless they are
assured that its transportation agencies
are strong enough and prosperous enough
TO expand their service with the growth
Of business. Since the construction Of
railways first began, they have ever been
the forerunner of investments. In this
day, IN localities already supplied with
railways, further investments depend on
the assurance Of the adequacy Of railway
facilities. For these reasons Southern
industrial development and Southern rail-
way development must 90 hand in hand,
in the future. as they have in the past
Stifie or restrict railway development in
any section, and the inevitable result will
be TO stifle or restrict all Industrial prog
ress and material advancement in that
section.
Interests Declared Identical.
Il think that no one who studies the
subject carefully and without prejudice
can differ with me in the conclusion that
the interests OF railway and OF the
people depending upon IL for transporta-
ton are Identical, and that, while the
public IS entitled to the best service that
the railway can give, the railway is
equally entitled to just and fair treat
ment at the hands of the public I think
ii must also be as clear 10 the business
men Of the South as it is TO me that, If
the railways OF this section are TO in
crease their efficiency as transportation
agencies and as allies with Southern COM
munities for Southern development, they
must spend large sums of money within
the next few years. The practical ques-
ton that confrOnts the railway managers
of the South is; How is this money 10
be obtained? This is not only a vital
question for the railways. but il is also
vital question for the Southern people.
Mr. Finley pointed out the utter ill.,
adequacy Of railway income 20 provide
funds for betterments and extensions.
showing that if every dollar of the net
income of the Southern Railway from its
organization had been used for this pur-
pGse il would have amounted 10 only
about s.. 600 per mile, whereas the road has
actually spent, or contracted to spend,
for capitalized betterments and improve
ments, more than sos 10000 or within a
fraction Of $4,000 per mile on its present
mileage. He shOWd that adequate funds
could be obtained only by borrowing and
that every attack on the earning power OF
a railway through legislation reducing
arbitrarily its charges or imposing oner-
GUS and restrictive conditions on its ODer-
alton, is an attack on its ability tc
maintain and improve its service and re-
acts on those It is intended TO benefit.
Legislation that CrippIes.
Mr.. Finley referred to propositions tC
reduce passenger fares in the Southern
States as an illustration Of the character
of legislation that eripples the ability Of q
railway TO perform service and improve
its facilities. He showed that passenger
rates that might be profitable In States
with dense population and heavy pessen.
ger traffic, like Massachusetts, New York
or Ohio, would be impossible in States likt
Tennessee and Mississippi. where the pop
ulation is so sparse that heavy traffic can
not be built up at any rates He con.
tended that all laws imposing penalties OF
railways for failure to perform impossible,
services were inimieal both to the rail
ways and the public. In conclusion, ht
said.
For these reasons, I feel justified il
urging upon you that your own Interests
demand from YOU something more than
mere passive belief on your part in tn,
self-evident truth that the railroads SHOULD
have fair play. The South needs ant
needs urgently and speedily, a great ex
pansion Of transportation facilities. Th'
railroads are willing and anxious TO sup
ply these facilities. As business men
therefore. you are vitality and personally
interested in seeing that the railroad!
have fair play and q square deal: tina
their passenger and freight rates are no
arbitrarily reduced so as 10 cripple thei
credit and prevent them from improving
their facilities. and that they are not sub
jeeted 20 restrictive regulations as to ca