The semi-weekly messenger., 1907-11-29
ONLY QUESTION IN RAILROAD
CASE.


Mr.. James ]. Hill, Of the Great
Northern railroad, made speech
few days ago in which he mentioned
one fact which, We believe, will be
surprise to many of our readers. He
said that since this railroad agitation
had begun there had been over a
hundred and seventy acts of legisla-
ton passed by score nr more OF
states in the line of restrictions on
railroads Mr. Hill seems to think
that the attitude of the legislative
bodies OF those states is driving the
country onto a situation which Will
require the pledge of the government
with it's credit to secure the funds ne
cessary for the railroads to keep up
with the increased demand on their
facilities to accommodate the business
of the country.
If legislation along the line of con-
tinued and greater hampering OF the
railroads in their ability to PROVIDE
for increased business continues we
do not see what is to be done unless
the government steps in and, by great
or increase of taxation of the people,
proyides for paternalism in the matter
of interstate traffic. The railroads,
| while in private hands cannot continu-
allv reduce their charges and at the
same time increase their expenses, as
under existing conditions they are
compelled to do because of the increas-
cd cost of labor and material and the
demand for enlarged transportation
facilities made imperative by the in
creased amount Of passenger and
freight traffic.
IF is nonsensical to say that through
reduced charges the business of the
railroads will be so increased as 10
improve their financial condition when
their incomes are not sufficient to al
low them to provide the facilities ne
cessary to meet the increased demand
ON their capacity.
The reDorts of the railroads sho"
that. while their gross receipts may
have increased, their net earnings have
fallen off.
IF a railroad or any other concerl
makes no profit on its business VIVA
difference does it make how much 1t
gross receipts are? 1t is the differ
, ence on the right side of the ledge
between the gross receipts and tn
expense of conducting the ouslnes
, which shows that the concern is beln'
, proftably conducted. There must b
a good sum to go to the credit sid
of the account between these two item
, if the concern is doing a prot1tabl
business. What difference does
, make whether a company's or an IN
dividuaPs gross receipts from its
his business is a billion or a thousan
. dollars a year unless the expense az
count is less than the gross RI
ceipts account?
No doubt the railroads in Mort
Carolina would haul a great man
more passengers if they charged on
one cent a mile for passenger fare
= but what benefit would that be
the companies or to their stockholde,
IL it cost the railways two cents
a cent and a quarter per mile to ha'
that greatly increased number OF pa
e sengers? That is just the questio
Q now. Can they haul passengers at Il
g rate of two and a quarter cents
i mile, imposed by the last legislator
h and make a fair return for the
l. stockholders? They say they canno
# IL it is judiciously decided that the
l. are right then that act of the legi
y lature is unconstitutional That
IL the only question in the case.