The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-05-31
which tho President could say would
accomplish II.

" ioiS Shep lUTWaTu III lne pIdCtiCh
application Of the principle that the
Federal government must ultimately
. control all those matters which con
: Germ the people as whole, his re-
: marks on the railroad situation VIII be
received with profound satisfaction by
the thoughtful business men of TINS
country, for the keynote Of his speech,
, so fer as the transportation problem is
J concerned, lies in the statement that
what the people OF America need Is
ample. safe and rapid transportation
facilities even more than cheap trans
pcrtation."
For the last three years this coun-
try has done deal of thinking about
railroads. There had teen for long
time the cry Of discrimination, and the
revelations Of rebates for favored
shippers awakened widespread and
natural resentment on the part OF the
public against the railroads. at that
very time there were on the United
States statute books ample laws to pre-
vent such abuses, as has been shown
in the prosecutions against the rail-
reads for rebate giving in the last six
ronths.
But when the public was once
aroused, it was not satisfied with half
way measures. and, from the example
Of the West, there spread general
demand for drastic railroad legisla-
ton. The establishment of State cor
'poration commissions became general,
and the first thing that these commits
sons did was to take aggressive ac-
ton in the matter Of railroad rcgu-
lation. The result Of this procedure
was greatly to depress the value Of
railroad securities by throwing such
an uncertainty over the matter that
! no one could Judge with accuracy as
to what the earning power Of any rail-
road would be in the future. Coincl-
dent with this depreciating value OF
/ railroad stocks. and antedating it, had
come such flood of traffic that the
railroads throughout this country
were practically swamped. 1t should
be borne in mind that the difficulty
from which the country at large had
or two years has not been excessive
rates. but inadequate transportation
facilities. It would seem, therefore, to
any ordinary mind that the efforts Of
the States should have been through
their duly constituted. authorities to
increase the capacity OF the railroads
to serve the public. This course was
not pursued. Throughout the South
and West violent denuncaton OF rail-
roads was the order OF the day, and
equally violent and unreasonable regu-
lations were laid upon them.
This state of affairs continued for
some time, until the shippers began
to see that the country most needed In
creased terminal facilities, more cars,
more engines and more side tracks.
The railroad managers saw tina. with
decreasing revenues there must be
either decreasing wages or decrens-
ing number Of men employed, while the
investing public saw that increasing
wages and cost of material and de-
creasing freight and passenger reve-
nues meant very unsatisfactory returns
for those who lent their money to
railroads FOR development.
The purpose of the Presidents
speech seems to be to bring the public
to sensible reflection. to put check to
the suicidal policy that the extremists
are pursuing and to restore confidence
in railroad investments. Therefore, the
President lays special stress upon
the importance of SO protnting rail-
road stocks and bonds that they can
be readily sold in the open markets of
the world, for he we'll understands that
the development of this country has
been brought about largely by good
railroad facilities and cheap freight
rates, The President also understands
that unless the public at large can be
persuaded to lend their money to the
railroads. receiving therefor the Same
return that would be secured from any
other financial venture. the govern
ment must undertake either to run the
railroads itself from money raised by
taxes, or to leave the public without
these facilities, upon which the growth,
success and continued prosperity of our
land depend. The Presidents language
| on this point is:
| 1T is therefore prime necessity
! to allow Investments in railway prop
critics to earn liberal return-a re-
turn sufficiently liberal to cover all
risks, We cannot get an improved
service unless the carriers of the coun-
try can sell their securities; and. there
fore, nothing should be done unwar-
rantedly to impair their credit nor to
decrease the value of their outstand-
Ing obligations"
All this has been said repeatedly by
The Times-Dispatch. We have con-
tenoed for railroad regulation; but we
have insisted that, as railroad facilities