New-York tribune., 1907-11-20
HILL ON SITUATION.
PLEADS FOR TOLERANCE
Comprehensive ReUie7c of Present
Industrial Conditions

industrial Conditions.
Kansas City. Mo, Nov 19-James 7 HIN Of ST
Paul. executive head of the Great Northern Rail
way, was the principal speaker at the thirteenth
annual banquet of the Commercial Club in this
city tonight.
Mr. Hill discussed The Commercial DEVELOPMENT
OF the Mississippi Valley" and gave a compre
hensiVe history and review Of Industrial conditions
is they exist to-day. lie said In part:
The transportation facilities Of the whole coun-
m are and n have been unequal 70 its present means
the country cannot prosper
How far railroad construction has been unable
country even now does not realize. o' ''-'
ttallIoad Lnanagements have met the situation by
@ @cilcieEcy I IN operation In both directions what
III Eyerytthing& & that available capital Ingenuity
aenent can iGen o aSor bG ana SKILL % @ mah
lem that remains is both physical and financial
20 bring construction up to the needs of inn
10 E 20 Is 5h S Il H. both { or 81 either % Of these
system. And only gross ignorance OF the truth
and true facts Only by improved methods Of
bocEaS of aS tT me 0Hd e 6eep Sag6 IRON P
ness activity or turned it into game OF confusion
This achievement in connection with constant
REDUCTION OF rates that has brought the average a
ten years to about two cents, and TIE freight rate
70 5ions Of dollars in the assregste viii be bef
Ter appreciated after comparison between the
The systems OF other countries
RAILROADS OF ENGLAND
The percentage of net earnings available for dis
1riPuton on he capitalized cost of the railroad
Germany 6 The aveTag5 Of these is ~ per cert
on much higher capitalization a mile amount
ing in England to over four times much Tho
total dividends declared by all the railroads of the
o caP @ oussndne nt e r oTT Gsn! 81 5 PeT Te
cent Of outstanding stock 10 dividends whatever
Any other business is judged by its average con.
FnfrY flpnlI rs4n,, .Nf
This country is not failure. as has been charged
ana whose opinion is consequently Of no value On
t ne contrary it IS when judged by results by Of
cess achieved in the development OF the United
much AS the Systems Of other countries and charg-
ing rates from 0ne-haf to one-third great. It
pays twice the rate Of wages. Few inventions pro-
sry ounded snd by adcan 4G G1nen ente en-
III 5Ti5g can snow d conlparative record which in
81 comparisons Under conditions difficult
first cost which the most efficient service to
Ne ne pune At he Qwest charge and pays its en-
lioyeS the highest Known scale of wages
The railroad men of this country have right to
ported by nothing better than mere decIamatiop
, Inc people should realize that there is physical
their habit TO regard railway a means OF
may be done. limited only by the policy or the
wishes OF its management The truth, of course, is
gam can get out Of the railway work beyond its
apnIicat 80 f t Ionnon faTness requires the
10 otner property, and comparisons s TO rates as
earning power place the railway systems Of the
United States far above those of any other coun-
conduct. '1'0' anu -'' uS'tu'
GREATEST PROBLEM OF OUR TINES"
The capital now invested In railways Is well enl-
ployed, and the men in charge of the railways in
with the greatest problem of time-how 10
T cent vesr @ Teg AZ ffo ~ 70 10
-Teases at the rate Of about ~ per cent year.
with Existing facites has been reached The
nfas1rf OF prosPer6y Is the ga ease ana certainty
The whole situation declares that must have
ly enlarged terminal facilities. How these be
had, and what inducement can We offer to the
body will build them? There is subject, right
20 be asserted wrong 10 be rectifed, real al
legged that can take precedence of an issue so vital
one nearly concerning the income the employ
eT ohe e Of omr s peope ana prosperity OF
year ago said that it would require $500 Ooo,
SLIGO. 10000 a year for five years make
railroad facilities equal TO the demands upon them
and spent the railroads have barely held their own,
Jess. but in the opinion of competent judges, more
perhaps % per cent more-must be spent annually
Tor the five years to
There are but two reasons, actual scarcity. Of
The outlook Promising enterprises can no longer
be financed on any basis consistent with present
A more serious factor. perhaps the controlling
given 10 confidence in our investments all
The world, and the consequent limitation of credit.
Credit is the atmosphere which initiates the lungs
be reduced in proportion or be quietly
sTnothered. For this reason attacks, not on indl-
Fldual transgresSion, not on dishonest finance, but
upon existing business systems, representing the
Ing credit what generation could not rebuild
Political campaigns in many states have been made
on the issue of a general assault on the integrity
Df railroad property and management. There fol-
iowed wild raid in which over 10 acts more or
less confscatory Of railroad property were enact
I'd by the legislatures of more than a score or
states The consequences TO the transportation sys-
n raj lrOad
10 the price OF farm products and to the success
II every form business have already made
themselves felt, and the country shivers under tho
BUSINESS PROBLEM.
II such continues TO be the attitude Of the public
mind. there will presently be power short Of
pledge of the credit of the government Itself able
- secure the funds necessary TO provide more
sder in a purely business way this business prob
loTn. For it is his problem He individually viii
suffer If railroad construction does not keep pace
with business growth This is q question of
directly the welfare Of all the people.
Before We again realize favoring disposition 10
invest there must be different temper, a larger
Vew Of Justice, a better appreciation Of what the
railroads of the United States have done and are
doing compared with those Of the rest of the
world, and a settled policy of fair and reasonable
liberal treatment, and protection for the future.
The duty Of the state toward railroad property,
which should have the rights common 10 other
property must be considered well the duty
Of the railroad TO the public.
of our railroads should be regulated properly by
wholesome and fair laws and quite as necessary
that they should not be regulated improperly. Reg
uiatiye statutes are now In force OF such scope