The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-08-19
VIRGINIA RATE TO
co IN AS SCHEDULED
-----.----------
Railroads, First to Offer Com.
promise, VIII Not Delay
After October.
HOW AGITATION HAS HURT
---------
Depreciation in Value Of Rail
way Stocks Due to Many
Severe Laws.
HOW AGITATION HAS HURT


that Judge Pritchard's delay in sign
ing the modified Injunction in the VII
ginia passenger rate cases may pre-
vent the operation of the two-ceh'
tariff by October list are hardly 1usti-
fed by the facts. 1T will be necessary
of course, for the Corporation Goinihis-
sion to publish its order for four con
secutive weeks before the law is Ell
fective. but in view of the position
taken by the railroads. the pubic VIII
receive the benefit of the lower rate
pending final determination of Its con-
stitlItionality by the supreme Court
nj the United states. While without
apparent foundation the rumofs, OF
fears OF delay have led to the peiel
here and there that the commonwealth
may again be Blocked. In TINS cohhec-
ton 1t is only proper to state that me
railroads. particularly the southe ~,
commonly regarded as the chief llti-
giant. had agreed to a compromise be
fore the publication of intimidatins
md Understanding statements that the
General Assembly would be called 10
meet in extraordinary session to whip
them into line.
Roads Made First Ovcrturcs.
The Times-Dispatch has. ALREADY
shown that from two separate and
distinct sources the Southern was pre-
pairing for settlement on the basis
of that reached two weeks ago before
threatened with the possibility of adj
verse legislation by the General ASSEM-
bly,. On July 30th the first orertures
We're made, being repeated two days
later when Judge Horseley, of counsel
for the Southern at Lynchburg. was
Instructed by officials of the company
at Washington to confer with Senator
Daniel. the understanding then being
that the rate would be put into eff
feet until its validity had been ju-
dicially determined. On the morning
of August I'd the statement was print
ed on reliable authority that the
Legislature would be called together
unless the railroads complied with the
ruling of the commission, the settle
ment two days later leading to the
impression in political circles that the
roads had been infimidated.
AS a matter of fact, the railroads
undertook to bring about similar
compromise immediately after hat IN
North Carolina. and while surrendering
none of their rights they consented to
the natural demands OF the State, as
although they paved the way for set
Element before being put in defensive
attitude by newspaper talk of extra
sessions for the enactment of sewers
and stringent penalty laws.
Passenger Rate Agitation.
The eSaggeration of this passenger
rate question has placed the South in
category which is calling form a
protest from many newspa prrs, now
contending that in this section there is
no attempt to injure transportation
companies by the passage Of unjust
laws. While the public Is cla,noring
for reduced rates 1t is demanding en-
cellent service at the same time and
the railroads take the position that it
should be satisfied with a twocoent
service when insisting upon two-cant
rate. Still. there is q denial from
railroad Headquarters Of the story
that trains will be discontinued
The present schedules will be main
tanned, although there is more than an
intimation that there may be changes
hereafter il it is found after careful
test. that they are operated at a
heavy loss.
Operating Expenses Increased.
The New York Journal of Commerce
printed a statement on Saturday that
sixty lone railroads for the month Of
June showed an increase in net earn
ings Of tl.S7 per cent. with an in
crease in operating expenses of 1876
per cent These same properties for
the fiscal year showed an increase in
net earnings of 7.30 per cent, with IN
increase in operating expenses of 1891
per cent. These figures, which may be
regarded as authentic in the absence
n
by railroad authorities as an evidence
that further reductions in the natural
revenue Will present a still poorer
record later on.
How stocks Have Declined.
According 10 the popular idea. this
alleged hostility toward the railroads
was first agitated by president Roose-
welt, and in market circles nowadays
he Is referred 10 as the real Roosc-
Welt bear from oyster Bay. In his
address at Indianapolis on May goth.
however. the President declared that
service was llore TO be desired than
cheap rates, that railroad stocks We're
no. watered, and shat securities should
be protected like those of the govern
ment.
A year ago railroads were quoted on
the market at the high water mark,
the decline in value being as follows:
1906 quotations hais
Southern Ry., pfd ~. 1oS 81
Atlantic Coast Line... 1879 so
Chesapeake & Ohio. 65fs 32is
Norfolk & Western. 9T9s GALS
Louisville & Nashville 1861 1854
Seaboard Air Line stock Is not listed
on the New York market, but Seaboard
per cent. bonds a year ago Were
quoted at IS la, the closing figure or
Saturday being 6S.
Loss Falls On Pubic.
Huch of the stock in these railroads
Is owned In Virginia aud the South, an(
rather heavy. The decline. however
Is not accepted to mean that thesprop
critics are in bad shape or that there
is any likelihood of receiverships; fol
they are sound. despite. the trouble
of the. moment. II Is the opnion, Q
not few students of the market tina
much of this depreciation in stool
value has been the direct result o
adverse legislation.
The Railway Age shows that thi
year thirty-three State Legislature
have passed 2I2 laws affecting rail
roads, practically all of which wer
resisted by the latter, virginiq is no
included In the Railway Age list, 70
the reason that the General Assemhl
was not In session, although the order
reducing freight and passenger TRAIN