The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1907-03-15
FEDERAL CONTROL
Of ROADS URGED
GOVERNOR HOkE aMiTH POINTS
OUT DANGERS or uNREsTRAiN-
ED TRANSPORTATION.
PUBLIC BEARS BURDENS
OF Poor Service and High Rates as
Result OF Watered Stock--Lin.
tied Ownership May Be
Necessary He Says.

unrestricted management of failroa
property and the necessity for go
ernment control to prevent discrimii
alton in rat were urged BY Goyerno
EIoke Smith Of Georgia, In an addres
on Transportation al he annua
/ dinner OF the Cincinnati Receivers an
| Shippers Association here tonight
| Governor Smith spoke about trans
portation, saying there was no NOR,
important and difficult problem TO b'
solved by the people of the United
/ States
Left without restraint" he said
"tha railroad companies can fix thu
value of lands They can determine
the profits of merchant They car
control The business of the manufac
turer. They can make and unmakC
towns and cities. The condition OF
dependents by the public upon them
increases from day to day
"A few years ago the transportation
companies were controlled by many
and varied interests Now they are
largely consolidated and several in
terssts control nearly three.fourths OF
the entire railroad mileage of the Uni
ted States.
These interests may be designated
as syndicates under thu names of Har-
riman Morgan and Hill. yanderbilts
Moores. Gould, Pennsylvania and
Rockefeller. While they conflict al
tones, their struggles are in the mat.
ter Of acquiring properties, not in tha
operation Of properties, and their con.
fliets result not in Better or cheaper
Transportation. hui ius nare stocks and
bonds. upon which lhe- public must
furnish money to pay dividends.
Roads Controlled BY Bankers.
This control OF the railroads of the
country has past from trained railroad
operators 70 bankers, who speculate
In railroad stocks. A notable result
Of this condition is the withdrawal Of
from the local management
and local superintendent, the reduc.
tion OF salariss to those actually. doing
the work of transportation, and the
dwarfing of the power and capacity
of the men upon whose management
The public must Immediately depend
To this at least in part, is due the
'ecent tendency towards a less eff
eient service.
"The interests controlling the rail
roads, as a rule, study the problem
of making immense fortunes at once
'ut of increased stock and bond is
sues. Tha right to earn just income
IN the actual investment in the.prof
sriies does not interest them: They
ire careless of the duties ownid bEI
he transportation companies to the
)ubl c.
The railroad properties of the Uni. |
ed States are capitalized at over
'13 000, 0,00o.000. Careful estimates of
heir actual values show them to be
worth less than $4,000 100000. The |
public therefore. are being called on
o pay excessive rates for transporta-
ion to make interests and dividends
N $1,000 900. 600 of waiered stocks !
nd bonds. These bonds and stocks
est like a permanent mortgage on
ha industries of those engaged in the
aiious ayocations of life.
"The transportation company is a
,ublic enterprise. The railroad is
,uilt by the use of the states power
f eminent domain The public are /
ntitled TO voice in the charg s
which are made by the railroad com
amy for carrying passengers and
feight. These charges must be rea
enable and free from determinations.
Duty to Public First.
THE duties of railroad company
re dual: First to the public; sec
nd, to its stockholders.
The public must look to the states
I'd the nations to protect their rights.
When we realize that over half the
tocks and bonds issued by The rail
Dad companies of the United Stales
re spectators. and not based upon
money actually Invested in the pro
critic. we see how reeliessly the
lghts of tn public have been disre-
arded.
Il present 10 you no struggle of Ia.
or against capital J urge no contest
poYerty against property I plead 7
lr the rights OF the property owners
hd their employees Of the United
fates, of ths men owning Industrial
I'd manufacturing enterprises, of the
zen owning Agricultural interests. an9
the great body of the people de-
endsnt upon their efforts 1 plead
" ths legitimate rights OF the pzblic (
zainst the mi management # quasi
lliic corporations.
The Public Should Benefit.
Instead of exhausting the capacity /
our transport riation c0mpa syies 10