The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1908-04-15

lhe conntrys need oi more rail-
roads, Of the double.tracking 81 pres
ent lines, Of more rolling stock, 10 In
no wise changed by present financial
conditions. Even If there should be h
slight letsup IN traffic, this would
not change the fact that our trans.
portation facilities are wholly made
quate TO the volume Of our trade and
that the country 10 rapidly growing
while the railroads are not. The late
Senator German Of Maryland, 10 or
Is years ago, very wisely said that
the greatest problem before the pco
pie OF America IL that Of distribu
ton" Distribution, OF course, i'm.
plies transportation. Every day since
then has emphasized the correctness
Of Senator Gofman's judgment, I'm.
der such conditions the cost Of trans.g
portation Is Of far less importance,
than the question Of securing the
facilities needed. We already have
by far the cheapest railroad freight
rates in the world-rates that are the
marvel Of the people Of European
countries. What we need now Is not
low rates, freight or passenger, but d
vast increase In facilities for handling.
business. OF all the absurd novel
mcnts OF the last " months in the
railroad and political worlds nothing
else quite equals the effort to force
down railroad rates II Is almost
puerilc in its shortsightcdness. II has
cost our country billions Of dollars
without a rcdeeming thing to the
credit side, Money for railroad ex
pansion cannot possibly be had un-
der present conditions Infinitely
better would Il be for the whole
country II the people would recognize
that, instead OF reducing rates, the
railroads must be given full authority
TO make general advance in rates
commensurate with the increased cost
OF doing business. The railroad bust
ness must be given an opportunity
TO make profits large enough 10.
tempt capital from everywhere TO
seek Investment In railroad securities /
Men are moi going to put their money
into such enterprises subject 10 the
dangers Of legislation = and they
would be foolish II they did so--un
less the profit is great enough to
Justify such risks, To attempt to limit
the earnings to 6 per cent, or even
10 per cent, or TO any fixed amount,
is not only absurd, but economically
false. for any attempt to limit the
earnings Of legitimate business under
takings will inevitably react and cost
the country far more than the differ
ence between a fixed income and the
profit which might otherwise be made
There own preservation would neces-
sarily require OF the railroads as fav-
orable rates as could be given
with safety for themselves and their
future.
Of recent years the public seems
10 have come to the conclusion that
men with bulging bank accounts are
waiting eagerly for an opportunity to
Iput money into railroad securities.
though the control of the railroads is
taken from them and though other
people who have no interest in them
are given authority 10 fix the rates
at which they can do business. The
idea is very fallacious. The capital
needed for railroad expansion Ii not
going TO seek railroad investment.
but railroad men must seek the capi-
tai with diligence 1t must be pre-
sented in such way as to indicate
profits large enough to justify the
risk, or otherwise those who have
the bulging bank accounts will keep |
their money themselves or else put it |
in securities over which they do have
some control. As a field for invest
ment the railroad is no longer an at
tractive proposition, land this, too,
comes at a time when never in our
history do we so much need money
for railroad expansion. 1t is quite
within bounds to say that during the
next five or six years this country
ought to spend 81 ,500000,000 year in
the enlargement OF railroad facilities.
We ought within the next five or ten
years to put one-half as much money
into the enlargement OF railroad facili
ties as the total amount now repre-
sented in all the stocks and bonds Of
the railroad OF country. Where is so
vast sum to come from? Ii 1t should
not come, then business will be halt
ed railroad facilities will orom staad |