Omaha daily bee., 1907-11-20
MORE TRAFFIC LINES NEEDED
Construction is Far Behind the
Growth of Business.
PLEADS FOR LESS AGITATION
IndisCriminate Attacks on Railroads
Destroy Their Credit
BUSINESS AND RIGHTEOUSNESS
He Says There Can be no CONFLICT
Between Them without Fraud
ut One End and HypOcracy
at the other.

AT Ahe uAheFs
KANSAS CITY, No, Nov. le.-James
HIN Of St. Paul executive head Of the
Great Northern railway, was the principal
speaker at the thirteenth annual banquet
OF the Commercial club In this city tonight.
Mr.. Hin discussed THE Commercial De-
velopment Of the Mississippi Valley" and
gave a comprehensive history and review
of Industrial conditions as they exist to-
day. He said:
THE transportation facilities OF the
whole country are and have been unequal
TO its present means. They must be made
equal to the burdens they bear or
the country cannot prosper. How far rail-
road construction has been unable to keep
pace with the domestic commerce the
country even now does not realize. Rail-
road managements' have met the situation
by every effort to increase equipment and
increase efficiency in operation. In both
directions what they have accomplished is
little short of wonderful Everything that
available capital ingenuity, cheap service.
high priced labor and skillful management
can accomplish has been done. The prob
lem that remains is both physical and
financial; to bring construction 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 impos-
| sible, 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
activity OF turned 1t into a game Of con-
fusion and chance
This achievement in connection with
a constant reduction of rates that has
brought the average per mile for each pas
| senger in the country in the last ten years
| to about 2 cents, and the freight rate to
"A cents per ton per mile, a saving that
amounts to billions of dollars in the aEgrs-
gate, will be better appreciated after q
comparison between the statistics Of rail-
roads in the United States and the systsms
OF other countries.
Railroad Enrnfngs Abroad.
1.-THE percentage of net earnings avail
able for distribution on the capitalized
cost of the railroad systems of England Is
SIA per cent in France A. in Germany g.
The average OF these is ~ per cent on a
much higher capitalization per mile,
amounting in England to over four times
as much. The total dividends declared by
J all the railroads of the United States in
| 1906 were but per cent OF the total cap
ital stock outstanding. On over 80 per
cent of outstanding stock no dividends
whatever were paid
ANY other business is judged by it's
average conduct, it's average return. The
| railroad system of this country is not a
failure has been charged BY men who
are without knowledge OF the facts and
whose opinion Is consequently OF no value
! On the contrary It is, when Judged by
results, by officlal records, perhaps the
most conspicuous success achieved in the
development of the United States. Cost
ing but from one-half TO one-hfth as much
as the systems OF other countries and
charging rates from one-half to one-third
as great, it carries nearly double the busi-
ness per mile and pays twice the rates OF
| wages.
"The whole situation declares that we
J must have more new lines, more double
track, more and greatly enlarged terminal
| facilities. How are these to be had, and
what inducement we ofer to the
| capital which must be willing to invest
| before anybody can build them7 There
is subject. no right TO be asserted or
wrong to be rectined. real or alleged, that
can take precedence OF an issue so vital;
one so nearly concerning the income, the
employment, the comfort, happiness and
prosperity of every one Of our s6OeO.OOO
| people.
"a year ago I said that Il would re-
| qulre $500 10000, or 81 100 10000 a year
! for five years, 10 make our railroad faclll-
ties equal to the demands upon them AL
though substantially the amount Of money
suggested by me as indispensable has been
collected and spent. the railroads have
barely held their own and the future re-
mains to be provided for. Not less. but,
| in the opinion OF competent judges. more.
/ perhaps 30 per cent more, must be spent
annually for the five years TO come.
There are but two reasons, actual scar
| city Of money and reluctance TO invest
| which overshadoWs the outlook. Promls-
! ing enterprises can no longer be financed
| on any basis consistent with present rates
| and conditions.
"A more serious factor. perhaps the con
| trolling factor OF the situation in this
country, is the shock given TO confidence
in our investments all over the world. and
the consequent Limitation OF credit.
Function of Credit.
| Credit is the atmosphere which initiates
the lungs Of business; and when It Is
! greatly lessened. business must be reduced
/ IN proportion or De quietly smothered. FOR
| this reason attacks, not on individual trans
| gression, not on dishonest finance. but upon
| existing business systems. representing the
! fabric OF society itself, may destroy, by
| imparing credit, what a generation could
not rebuild. Political campaigns in many
states have been made on the Issue OF a
general assault Of the integrity OF rail-
road property and management. There
followed a wild raid IN which oNyer 10
| acts more OF less confiscatory OF railroad
property were enacted by the legislatures
| OF more than score OF states. The con-
sequence TO the transportation system. to
railroad construction, and through these
10 the price OF farm products and to the
success OF every form OF business have
/ already made, themselves felt, and Cle
country shivGs under the blow
| III Ench cnnLLnma. 10 ha the aLLLLllEn Of