The Washington herald., 1907-07-19

Louisville. Ky. July 1S.-W. w. Finley.
president Of the Southern Railway Com
pany. delivered an address this evening
before the Louisville Commercial Club. on
The Railroad Question"
Mr.. Finley referred 10 the growing i'm
-pOrtance OF Louisville as a commercial
center and rs q manufacturing point, and
pointed out that standing between the
South, on one side. and the North and
West, on the other, the business men of
this city were in a position 10 realize that
Kentucky, and the other Southern States.
were not as well supplied with railway ia
eilities, in proportion to their needs, as
some other parts OF the country.
After pointing out that railway rates
were controlled by economic laws and
could not be fixed on any arbitrary basis
and that the South-far distant from its
most desirable markets-could III afford to
accept distance as the principle Of rate
making, Mr. Finley said that the public
frequently fails 10 realize that length Of
haul could not control charges: that in
many instances, a railway must accept
less for a longer haul than it receives for
a shorter one, and that in SO doing it
does no injustice TO those shipping over
the shorter distance
Distance Not Considered.
lie Illustrated this by showing how
rates from Louisville to Lynchburg and
other Virginia cities were beyond control Of
the Southern Railway Company. which had
longer route than either the Chesapeake
ana Ohio, or that by way of the Louisville
and Nashville and Norfolk and Western.
both of which lines were operating be-
tween the We. and the Virginia cities
before the ol-a..z ,tion Of the Southern
Railway, wiz rates practically the same
as ~ present.
Referring to Chairman Knapp's declara-
tion that "an immense amount of fresh
capital must be invested in railroad i'm
provements In order that our internal
commerce may develop and our pros
perity abide" Mr.. Finley said:
I believe that popular misapprehen-
sion as TO the financial resources of the
railways is responsible for much of the
agitation for legislation that would tend
70 destroy an earning capacity that must
be preserved. and even increased il the
credit OF the roads is 10 De so maintained
as TO enable them 10 secure the new
capital that is needed. There seems TO
be mistaken belief. in some quarters.
that the railways have great and mys-
terious resources. outside of their current
earnings and their credit Tt is unneces-
sary for me 10 tell an intelligent audi
ence. such as this, that this Is a serious
mistake, and that the railways have no
mysterious inexhaustible treasures on
which they can draw for tile immense
amount OF new capital referred TO by
Chairman Knapp.
Not Supplying Capital.
The men Who are demanding that we
shall improve our service. and who. at
the same time, are proposing legislation
10 reduce our income. are not coming
forward with offers TO supply this cap
ital If it IS 10 be provided we must
depend upon investors. These investors
are governed by identcaIly the same con
siderations that influence the man who
invests his money in farm. in NOR
camille establishment. or in a factory.
They want to know that the commodity
which the railway has for sale-tranSpOr-
tatlon-ean be sold at prices and under
conditions that will probably pay all
the expenses Of running the business and
leave fair margin over for profits.
They want to be assured that when the
transportation company has performed
its service at reasonable rates. has
avoided unjust determinations, and has
compiled with all its legal obligations.
whatever remains 10 il, be it much or lit
lie. shall be recognized as being its prop
erty. entitled TO the same degree Of pro
lection by the laws Of the land and by
public opinion as property in any other
form, or obtained In any other legitimate
manner