The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-11-20
COMMON SENSE
VIEW OF HILL
Head of the Great Northern
Principal Speaker at Banquet
in Kansas City.
CONDITIONS AS THEY EXIST
DEVELOPMENT RETARDED BY
OPPRESSIVE LEGISLATION.

Kansas City, Nov 19.-James J. Hill
Of St Paul, executive head of the
Great Northern railroad, was the prin-
cipal speaker at the thirteenth annual
banquet of the Commercial club in this
city tonight
Mr. Hill discussed the Commercial
Development of the Mississippi VAL
ley" and gave a comprehensive histo-
~ and review of industrial conditions
as they exist today.
Every Effort Put Forth.
The transportation facilities of the
whole country are and have been un-
equal TO its present means. They must
be made equal 10 the burdens they
bear or the country cannot prosper.
How far railroad construction has
been unable to keep pace with the do
nestle commerce the country even now
does not realize.
Railroad arrangements have met the
situation by every effort to increase
equipment and increase efficiency in
the 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
aEement can accomplish has been done.
The problem that remains is both ply
steal and financial, to bring cOnstruc-
ton up to the needs of our immense
domestic commerce, and to raise the
necessary money to do this. If both
or either of these is impossible, it is not
the fault of the railway system. And
only gross ignorance of the truth, or
the malice of disturbers, can ignore the
plain and true facts. Only by improved
methods of operation has the country
been saved from a blockade of traffic
as would have destroyed business ac-
tivity or turned it into a game of con-
fusion and chance.
Comparison With Europe.
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 2 cents. and the
freight rate to "A cents per ton per
mile, q saving that amounts to billions
of dollars in the aggregs te, will be bet
ter appreciated after d comparison be-
tween the statistics of railroads in the
United States and the systems of other
countries.
The percentage Of net earnings
available for distribution on the capt.
talized cost of the railroad systems Of
England is 80 per cent, in France 4, in
Germany s. 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
railroads of the United States in 1903
were but 4 per cent Of the total capital
stock outstanding. On over SO per cent
nT NeNr y
whatever were paid.
Eystem Not a Failure.
Any other business is Judged nv its
average conduct. its average returns.
The railroad system of this country is
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, when judged by results. by ON
c1al records, perhaps the most con-
spicuous success achieved in the de-
velOpment of the United States. Cost
ing but from One-half to one-ffth as
much as the systems of other cuuD-
tries, and charging rates from one-haIf
to one-third as great, it carries nearly
double the business per mile and paws
twice the rates Of wages Few fnven-
lions produced by American genius.
probably no other industry founded
and perfected by American enterprise.
can show comparatively good record
which, in the essentials of practical
value so distances all comparisons.
Under conditions most difficult wa
nave created { transportation system
at lowest first cost which gives the
most efficient service to the public ar
the lowest charge and pays its en-
plcyes the highest known scale Of
wages.
Have Right to Be Proud.
THE railroad men of this country
have right to be proud of their rec
ord, and resent criticism supported nv
nothing better than ignorant decIama-
ton. The people should realize that
there is a physical limit to the capacity
OF railroad. 1t has been their habit
to regard the railway as a means Of
transportation over which an indefinite
business may be done, limited only nv
the policy or the wishes of its man
agement. The truth. of course is that
neither the desire to serve nor the
of gain can get out of tbe
railway work beyond its ability To ner-
form Common fairness REQUIRES the
application Of the same treatment of
railroads as of other property. and
as to rates, as to efficfen-
cy' as to capitalization per mile and as
10 earning power, place the railway
systems OF the United States far above
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