The comet. (Johnson City, Tenn.) 1884-1916, 1907-03-07

sNc AlnOSt tuhpproOlAOl0.N h.TouuctiOh
OF their average level Q small fraction
ofA cent per ton mile would be 80 in
considerable in Comparisons with the
value of any commodity shipped, that
II would not materially benefit either
the shipper or consumer, while il would
bediSastrous to the railroad, which can
only pay its operating expenses, taxes
and fixed charges and earn reasonable
profits for its stockholders by selling
transportation.
THE fact 10 that the cost OF trans
pOrtatiOn is An exceedingly small factor
in the cost Of supplies TO the public
Notwithstanding the low passenger
and freight charges on American rail
ways end the degree Of governme entail
supervisionsnOw provided for, the ten
deROyof the times is toward still more
striugent laws for the regulation OF
transportation by rail, bat business
men aud those responsible for Iegisla
tion should consider whether there is
not daugeEthat this form Of legislation
will be carried TOO fer, Leaving aside
the sooialiasic character of many Of the
proposed lAws II 10 worth while TO con
slider whether soms OF the pFopoasd
laws w0nld.no be injurious robustness
interests generally. as we'll to the rail
roads. Forinsssnce, the most pressing
need Of farmers. manufacturers aud
business men OF oil kinds Ut the present
time is additinal transportation facili.
ties, permitting the more prompt aud
regular movement Of freight and pas
sengsrs. Millions Of dollars are needed
to provide additional tracks, new
equipment and other betterments and
improvements. Railway wages and
thsprices Of practically everything that
. arailway must buy are at their highest
level, with the tendency still upward,
and yet measures are pending in some
of the legislatures that would seriously
impair railway eafnings. The money
that is needed for betterments aud ex-
teDsions can be obtained ouly from net
income or from the proceeds Of new
capital securities. Net income, even if
it had not been impaired already by
the increased expenses of operation
and main ntenance, would be utterly in-
adequate to supply all the funds imp+-
ratively required, and the eale Of new
capital securities must be resorted to
How are they TO be sold il the credit If
the railroads through Legislative ten
denotes or otherwise is impaired?
"The only product that railroad
has for sale 10 transportation, and it is
one Of the few products the price of
which is not fixed by the law Of supply
and dem and. II manufacturer should
find himself confronted by an enormous
increase in bis cost Of production, and
If, at the same time, there should exist
. demand for his products in excess of
the utmost capacity Of his plant, he
would probably put up.his selling price
to the highest point that would not Sc
riously check the demand and no one
would suggest that he had done any
thing wrong. But, the railroads in
just such situation are confronted
with Legislation reducing their income
II is needless to poiAt out that this pol
icy, II carried too far, can have but one
result-the actual deterioration Of rail-
way facilities ct time when they
shodld be rapidly expanding aud i'm
proving.
"One OF the projects put for yard
would, in the most direct way, serious
ly ihiure many cities of the south. A
recent publication embodiss the sug
gestion that the development Of trade
centers, and the alleged CONSEQUENT
congestion Of traffic, be checked by {
readiustmOnt o; railway rates. Partic
ular reference 10 made to the growth oi
such centers in tho south and opposi
tion is expressed, on both commercia
and social grounds, to the conceEtrs
tion in them Of business and -popula
tion. This suggestion, if acted Oh
wonDd arrest the growth Of these citie