Daily capital journal. (Salem, Oregon) 1903-1919, 1907-04-04

try, some of It of doubtful purpose
and some the result of misdirected
zeal inspired by the national admin
istration. and II we are ever going
TO extricate the railroads we have
got to come out in the open and tell
the people the railroads side of the
matter"
The objecting friend suggested
that this might be done by the prepa-
ration of a pamphlet, but MIR. Harri-
man would have none of that.
Before a pamphlet was OF the
press" he said, there would be a
change in the situation and we would
be put in the position OF trying to
explain what he had said before. The
only thing TO do is to reach the pub
lie through the newspapers, and
whether or not our attitude may be
misunderstood by some people, we
will gain by every particle Of more
accurate knowledge that we may be
able to give somebody"
Then he turned to the reporter:
Take the situation when this in
terstate commerce commission in
quiry started. There were pending
arrangements between several large
corporations and foreign capitalists
running into the tens of millions.
These arrangements were on very
favorable terms. As soon as the for
eigners heard that the interstate
commerce commission was going aft
er the Union Pacific they came to the
conclusion that American corpora
tions in general were in n pretty bad
way and the negotiations were
broken on.
Now II those arrangements had
been completed Il would have eStab-
lished standard Of credit for all
good American enterprises that
wanted to raise funds abroad. More
over. the Importation of the gold
would have added four times rs
TO the banking credits OF the
country. All that was stopped, for
the time being. by the timidlty OF
foreign capital produced by the lnsti-
tuition OF the inquiry"
A New Era la Railronding.
Mr. Hartman went on 10 discuss
urb.thav tho roftv.. a.. m. ..,,.. f..f...
a new era in their development, as
distinct from that which has gone
before as was the period OF reorgani-
zation from that OF rapid expansion
which preceded II, OF that OF tremen-
lous traffic development which has
followed in the last seven OF eight !
years.
"Unquestionably that Is the case. 4"
he said And that is the very rea
son why / believe II essential that
The railroads and the public should /
reach a common basis OF understand
ng. II the railroads are unable 20 |
meet the further development OF the ,
country. they become fetters for the
'ountry's business interests. We can
zee che causes Of this situation II We
90 back Is or 20 years In railroad
development.
Back OF 1893 for decade there
lad been a period OF rapid oonstruc-
ion OF railroads. the great period Of
abroad expansion as the country be-
IAN 10 recover from the effects OF the
'iyil war. The railroads In that era
Inquestionably built beyond the abi.-
y OF the country 10 support them.
When a reversion OF business came
n the early nineties. as such things
10 come from time 10 time. here was
n this railroad construction whiok
here was no corresponding demand.
he receiyership period was the logi
al result.
Then we had the period Of re-
eiyerships and reorganizations
lhich was practically eontempOran-
Gus with the recovery OF the ooun-
~ from the depression OF 1898. But
d that period practically nothing
las done by the railroads TO antiel-
ate the future development Of the
ountry. They had ali they eoulj
o holding their own and making two
nds meet after vhat had gone be-
pre-. Now suddenly the country
merges from the years Of business
oppression Into ak oF eight years Of