The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-08-16
Whatever blessings riches may
hive In other respects, they arc no
friends to the nobler qualities Of
the henrt.-Durns.
coon OUT OF AGITATION.

Whatever may be the effect on the
profits of the railroad business and the
value Of railroad securities, there Is no
doubt that some good will ultimately
come out Of the regulation enactrnents
that have been passed and the Incl
dental agitation. Relating will cease.
and, as far as practicable, all forms Of
The wholesale giving
Of passes will also cease. and the rail-
roads will profit by both of these re-
forms. Stock jobblng on the part OF
railroad officials will in great measure,
be stopped, and these officials will be
required to operate their roads for pri-
mary and legitimate purposes, and not
Tor the purpose of making deals" and
manipulating stocks.
Another advantage to be gained,
from the investors point of view, VIII
be a uniform system of bookkeeping.
so that the public may know from
the reports of the various railroads
precisely what relation gross earnings
Dear to net earnings. 1t is well known
that by the manipulation Of accounts
railroad statements are often mslend-
ing. BY scharging the cost Of con-
structive work and the like to tho
current expense account, an unfavor-
able showing may be made as to net
earnings; and, on the contrary, by
charging OFF what are legitimately cur
rent expenses to other accounts a ia
vorable exhibit may be made. In
either case the exhibit may mislead
The public, who do not understand the
devious ways Of railroad bookkeeping
which desire to boom their stocks
manipulate hleir several accounts sc
as to make as attractive a showing
as possible to investors; On the other
hand, that when railroads, for purposes
Of their own, desire to conceal from
the public the profits they are making
way as 20 make the ne. earnings ap
pear to be less than they are. If The
law requires that rates be lowered ant
railroad resists the enforcement o
The rate on the ground that it Is IN
reasonable, what Is easier than for tn,
railroad to juggle its accounts in sucl
q way as to prove its case?
But with a uniform system of book
keeping, and fixed rules as to wha
shall be charged to the current eX
pense account and what to other &C
counts, there can be no such jug
s Cling, except by fraud, which woul
soon be detected by the examiner.
Still another good result will be
closer relationship between the rail
roads and the people. Railroad ofi
SAILS, in many instances. have been to
prone to manage their properties froI
The Wall Street end of the line, som
Of them have paid too much attcntlo
20 earnings and too little to the need
and interests Of their patrons. I'll
railroads have performed good scrvic
W OcNElopihS inc country tnrOUS
which their lines pass. and they deserv
credit for what they have done in thi
direction. But, for all that, the bt
officials have stood sfar on and hav
not been in rs close touch with III
people as they should have been. The
have relied too much upon the repor,
II subordinates and too little upo
personal investigation. When publ
meetings Of protest are held, the b.
men do not attend. When they rio
over the line. they travel in priva
cars. That is poor way to get &
formation. That Is a poor way
feel the pulse Of the people. II IN
desire to know what the people a
thinking and saying. they should ri
4 In the smoking car with the farme.
the merchants, ana especially with t
drummere.
If the railroad presidents are wi
they Will have learned this valuat
lesson. We believe that most OF tbs
hays learned ii and VIII pront by