Los Angeles herald., 1907-11-20
HILL CHAMPIONS
AMERICAN ROADS
"ENTERPRIsE HAS PREVENTED
BLOCKADE"
"Reoord UnequaIed by Another coun=
try" Declares Magnate at kan-
sas City Banquet of Con-
merciaI Club

BY Associated Press.
KANSAS CITY, Nov. 19.-James ).
Hill of ST. Paul, executive head of the
Great Northern railroad, was the prin-
cipal speaker at the thirteenth annual
ba anouet of the Commercial club in this
city tonight.
Mr.. Hill discussed the Commercial
DEVELOPMENT of the Mississippi Valley"
and gave a comprehensive history anu
review of Industrial conditions as they
exist today. 80.
'"rhe transportation facilities OF the
whole country are and have been ufl-
euual to its present demands" he said.
''They must be made equal to the DUR
dens they bear or the country cannot
prosper.
How far railroad construction has
been unable to keep pace with the DO
mestio commerce the country y'eVen now
does not realize.
RAILROAD managements have met
the situation by every effort to increase
equipment and increase efficiency III
operation. In both directions what
they have accomplished is little short
of wonderful. Everything that avail
able capital, ingenuity, cheap service
high protected labor and skillful man
agement can accomplish has been done
"rhe problem that remains is both
physical and financial; to bring con-
struction up to the needs of our I'M
mense domestic commerce, and to raise
the necessary money to do this. II
both or either of these is impossible 1T
is not the fault of the railway com
panies.
Blockade Avoided
, "Only gross ignorance of the truth
or the malice of disturbers can ignore
the plain and true facts. Only by i'm
proved methods of operation has the
country been saved from a blockade OF
traffic that would have destroyed busi-
ness activity or turned it into game
of confusion and chance.
This achievement, in connection
with a constant reduction of rates that
has brought the average per mile for
each passenger in the country in the
last ten years to about two cents, and
the freight rate to seventyfour cents
per ton per mile, a saving that amounts
to billions of dollars in the aggregate
will be better appreciated after COM
parison between the stats tics of rail-
roads in the United States and the sys-
TENS of other countries.
THE percentage of net earnings
available for distribution on tlfe capi-
talized cost of the railroad systems of
England is 81 per cont, in. France 4,
in Germany 6. The average of these
is Az per cent on a much higher capt.
talization per mile, amounting in Eng
land to over four times as much. The
total dividends declared by all the rail-
roads of the United States in 1906 were
but per cent of the capital stock out
standing.
"on over SS per cent of outstanding
stock no dividends whatever were paid.
Not a Failure
"Any other business is judged by it's
average conduct, it's average returns.
The railroad systems of this country
are not failure as has been charged
by men who are without knowledge of
the facts and whose opinion is conse-
quently of no value. On the contrary
it is said that when judged by results,
by official record, they are perhaps the
most con nspicuous success achieved in
the development of the United States.
Costing but from one-half to one-fifth
as much as tho systems of other coun-
tries and charging rates from one-half
to one third as great, they carry near
ly double the business per mile and pay
twice the rates of wages.
"Few inventions produced by Amer
lean genius, propdDiy no otner INDUSTRY
founded and perfected by American en-
terprise can show a comparatively good
record, which in the essentials of prac-
tical value outdistances all compare
sons. Under conditions most different
we have created transportation sys-
tenn at lowest first cost which gives the
most efficient service to- the public at
the lowest charge and pays its em-
ployes the highest known scale OF
wages.
have a right to be proud of their rec
ord and resent criticism supported by
nothing better than ignorant deelara-
ton
] Judge John c. Pollock Of the United