The daily morning journal and courier., 1907-06-27

 at present the outcry is loudest against the corporations doing an in- terstate s-particularly the railroads. Abuses in railroad man agement there have been and doubt less many still obtain Generally speaking, rebates, private car lines, discrimination against certain locali- ties, and the issue of securities for im- proper purposes. are evils of magni- tude and should be prohibited by stringent legislation. Even such reg ulations, however, should be instituted only after careful consideration and thorough investigation. Discrimination in railroad rates has not always been an unmixed evil. The marvellous growth aAd prosperity of the west are due, in no small degree, to the fact that wheat has been transported at a relatively low rate. Many fourishing 'centers of trade and industry have been developed by the judicious dis crimination of railroads Tn this re- spect relatively low rates have had an Influence not unlike that of the tariff in the upbuilding of certain industries and markets; and like the duties on certain classes of imports, the time has doubtless arrived for readjust- ment. Unfortunately, however, our lawmakers are being driven by thoughtless agitation into the enact ment of much nasty and ill-advised egislation-inimical to the free devel- opment of railroads. In England, when the citizen is excited by en- croachments on what he deems to be his rights, he finds vent for his over wrought feelings in a letter to the Times in this country, he immediately resorts to legislation, Railroading, next to farming, is the interest of most importance to all the people, and in the same degree that its growth is in terfered with is the economic progress of the country retarded, The period of extravagant railroad aid" legislation, with all its attendant evils, was less harmful to the country than this other extreme promises to be. In the enact> ment of the law limiting passenger
 
 three per cent. reduction--in this State our legislators apparently disregarded 1 the fact that the passenger service is the least remunerative of any of the I operations of a railroad Even before this law went into effect, it was only on the large through lines that the carrying of passengers was reasonably profitable, while many of the cross state roads operated passenger trains 1 at an actual loss on running expenses alone, to say nothing of a return on 1 the investment, In this connection quote from the correspondence be- tween two railroad officials, relative tc i a local demand for additional passen- ! ger train service.
 There is no money in the passen- ger business on the two-cent fare basis, and the Wheeling and Lake f Erie could save thousands of dollars month if we could consistently elim- mate passenger business entirely, as we have very few passenger trains at the present time that are earning suf- fcient money to pay for direct operat- ing expenses, to say nothing of inter est or fixed charges. There are only two or three trains out of Cleveland that earn sufficient money to meet their direct operating expenses, al other passenger trains are being run at loss.
 This statment is but an index tc the situation, as it exists in Ohio to- day. In the light of these facts ask the members of the Legislature if the enactment of this law was in the in- terests of the people? I think it must be taken that the capitalization ol railroads represents their value therefore this is a proper basis fol considering the amount of return thai should be had for their service. The President said in his Indianapolis speech:
 There has been much wild talk as to the extent of the overcapitalizatior of our roads. The census reports ot the commercial value of the railroads of the country, together with the re. ports made to the Interstate Com. merce Commission by the railroads or their cost of construction, tend tC show that as a whole the railroad property of the country is worth a; much as the securities representing f and that in the concensus of opinior of investors, the total value of stocks and bonds is greater than their tota face value, notwithstanding water tha has been interjected in particular places"
 It is both proper and right that cor lporations should be regulated by law but laws which by their terms as sume the prerogatives of ownership are inconsistent with our form of gov ernment. The financial needs of { railroad are usually imperative anC funds must be obtained, whatever thu condition of the money market I the railroad manager is to meet thu lexigencies of the times, he must bt given the widest latitude as to tn nature of securities and of terms or which they are sold. Simple restric tions as to watered stock, etc., are al that are essential to protect the in vesting public. Unfortunately, it i not alone the owners of the propert, directly affected that are injured b, inimical legislation, but the many later on, suffer from the effects of tn disturbance, paralyzation and disaste which follow in its wake. By tn careless use of fire in burning over tn prairie the villages are often destroy ed. The fact that there are som questionable resorts in the village does not atone for the disaster. Tntem perate and drastic reform measures however, commendable in purpose tend to shake confidence and will, Il