Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-06-11
THE RAILROAD SITUATION
AS 1t Appears to Former r. r. Pres
ident Stuyvesant Fish.

New York, June 10.-EO more rail-
roads will be built in the undeveloped
part Of the United States. except at the
risk of and with the capital of existing
lines if the governments plan to fix
rates based upon railroads valuation
is carried out. in the opinion of Stuyvc-
SAINT Fish, former president Of the Hi
nois Central Railroad. Mr.. Fish ex-
pressed his opinion in the course of an
address before the graduating class in
applied science at Columbia, University
today. He characterized the action of
Congress in giving the Interstate Com
mcrc1 Commission the power of fixing
rates as Il distinct reversion to media
eel times which will hinder and delay
if it does not in some places absolutely
prevent the development of the West
and South through the establishment
Of new jobbing centers.
ono man would venture his capital
in the construction of a railroad in a
new country for anything like the ) or
6 per cent. per annum, which might be
allowed by the government Il a fair re
turn thereon said Mr. Fish
"In saying this let me not he msun-
| 'Ni'7t''' 90 'l't'''iilo ~ Nii' II hiu'i''I
of the railroads by the state or federal
authorities or by both. for in common
with nearly all railroad men, | apprc-
ciate the justice, the necessity and the
wisdom of such control. What | do OBJ
icct to is the attempt to fix in advance
by statue, the price of railroad rates
or Of any other service or commodity.
$50 much has been said about the al
legged decentralization of railroads
and 50 many Elarng instances Of ras-
CalitirS in respect thereto have been
brought to light that the public have
come to believe that the railroads as 4
whole. are ovcr-caritalizcd. | am free
to admit that prior to 1850 the Amcri-
can railroads taken as Il whole were
over Ca pitalizcd in the sense that the
sum total of their bonds and shares
then outstanding exceeded the value,
although it did not then exceed the cost
Of their property. Since that time. how
ever. railways as n whole, have gone
through an era Of tremendous under
capitalization, which were forced on
many Of them in the bad years follow
ing 1899, when for 4 long period fully
one-quarter of the railway mileage in
the United States was in the hands of
receivers.
apart from the great improvements
in their property thus shown our rail-
roads, which are now rendering nearly
two and q half times as much service
as they did l. years ago, and better. far
cheaper and quicker service at that.
are intrinscally worth vastly in excess
Of the 40 per cent. increase shown in
their outstanding stocks and bonds. 1t
was found impossible to build railroads
as rapidly as the growth of the country
called for them solely, or even largely
with a capital paid in cash by the
shareholders. Hence of necessity bonds
were often sold in advance Of con-
struction nor could they be sold except
at discount and with bonus of stock
thrown in
Mr.. Fish in referring to probable flu
ture legislation. said he believed that
the solution will pc found in that por-
ton Of the constitution which provides
that Congress shall have power ito reg
ulate commerce with foreign nations
and among the several states and with
the Indian tribes
The present interstate commerce law
provides that it shall not amply to
transportation wholly within one state