New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-11-01
LETTERS TO THE EDITOR
DEPENDS ON RAILROADS.
Return of Prosperity Linked sCith
Their 4ctiUity.
r OF The Tribune.

To the Editor Of The Tribune.
Sir: With the Presidential campaign drawing TO
a close the press and public seriously consider
ing what the election OF Bryan or Taft would mean
for a revival of business While the partisan, Of
course will insist the election of the opposing
candidate will mean further depression Of bust
ness to my what is absolutely necessary for
the return OF prosperity is dscontinuance of the
policy 10 hit every concern that happens to be
incorporated, and especially at the railroads.
The idea is too prevalent that the railroads are
the foes of industrial development and that they
are exacting exo-bitant charges from the
Terce of the country. To-day the railroad business
is completely derncralized railroad securities,
once the staple and desirable form OF invest
ment, are about the par with the fy-by-night
mining stocks that are constantly being folsted
a gu,lible pubic.
II stops 20 consider the progress of our
country before The introduction of railroads, how
slow ii and confined to the cities and towns
along the natural waterways the most radical
hater of the railroad admit that e. the
railroads alone is due the wonderful development
of our country. and that as new lines are built
territory is opened up. industries started and
land values increased IF railroad really built
when the rails down and the first train run,
there might be basis for demands such
have been made of late but the truth is shat the
real building OF a railroad starts at that point.
and it is five and sometimes ten years after the
roadbed has been turned over by the contractor
that it can really be called railroad in the true
sense OF the word and during that time the
OF maintaing the road should really be charged to
construction cost During that time the road has
TO develop its business and that depends
the opening Up industries along its line and
its in meeting competition at terminal
points it is often long and tedious struggle to
meet interest and other charges. and lucky is the
road. unless it has strong financial backing. that
survives this period Of Its development and does
not go into bankruptcy.
When this happens the cry is that the road was
gy-e lit.ii wa u
it, when the truth Is its bankruptcy was caused
by the low rates it had 10 charge in order TO get
business AS matter OF fact, the average capt
talization Of American railroads is only s61 900
mile while those Of Great Britain are capitalized
at an average OF $3.50 coo q mile, and their
freight rates nearly five times high ours.
while the wages they pay are less than half those
Of the American railroad employe.
With railroad facilities absolute necessity for
the development of any territory. it seems strange
that there should be such outcry against them.
Canada to-day is doing what did years ago.
She is substituting her railroads and doing every
thing she can TO encourage their construction, and
find railroad building fcurishing there it
never did before while in own country
tractors outfits are rusting away in idleness
At the present time there 5000 miles
Of railroad the United States and there is room
for 225 600 miles more, but with the present feeling
against railroads very little new mileage will be
built. It takes capital 10 build these reads. and
capital wants to have a reasonable assurance that
there will be some return for the money invested
but to-day. with every state having different
idea as 10 a railroad should conduct its bust!
ness. with the federal government Joining in the
crusade and the cry of state ard federal ownership
being raised every little while, the investor does
not want to have anything to do with this kind
Of IN investment
Another element that is retarding the building OF
new lines the present time is the difficulty
countered in getting the proper rights of way and
terminals This is element Of cost that never
had 10 be considered IN former days. nov il
IS che CT the large items, and one that cannot be
estimated in advance because the railroad In the
assertion Of its right Of eminent domain either
to abide BY the judgment OF unfriend!y Jurors
making the awards for land taken expend
siderable money the cultivation Of the jurors
friendship. and this is a performance which. when
often repeated becomes expensive proposition.
There many other items that enter into the
cost Of constructing ard operating 4 railroad at
the present time that were not present in former
years Wages higher. material and equip
ment deareT and competition greater. this com
pctiticr together With regulations In regard
to rates, has forced down passenger and freight
rates until to-day there isn't a railroad In the
United States thst is earning enough to make an
adequate return the money invested Not a
small minority just about able TO meet their
fixed charges. while good many roads have only
kept out of bankruptcy by naortgaging and remcrt-
gaging. not only all their assets. but their future
earnings as well
When railroads cut down the expenses Of opera
ton AMI maintenance TO a point where their neg
lect 70 make repairs becomes almost criminal and
the hauling passengers dangerous they certainly
are travelling "A rough road, for safety travel Is
a trademark that every railroad is mcst anxious
10 acquire Yet With ali these evilencts of the
financial ernbarr ssnsnt Of railroads before US we
find legislatures insisting on arbitrary and lover