The Topeka state journal., 1908-03-10
RAILROAD NEWS.
Vice President Ross of Glover
Leaf-AltOn Gives His Views.
Says Public Opinion Is Greater
Factor Than Statutes.
NOT OYERCAPITALIZED
Interest Rewards on Railways
Less Than on Farming.
Other Items of Interest In
Railway Circles.

George H. Ross, vice president Of
the Glover Leaf-Alton lines, in a re-
cent address before the Commercial
club of Springfield, ILL.,. spoke inter-
estingly of the railroad situation Of
the present as follows:
while the federal laws, as well as
the laws of several states more re-
Gently promulgated. demand more
publicity than formerly, the current
of public opinion is doing in this di-
rection more than the statutory re-
QuirementS.
I'm handling OF traffic conditions
bearing on rate applications, such as
and conditions, but few changes gem
orally are made by the railroads at
the present time without inviting rep
resentattves of shipping interests af-
fected.
with certain railroad traffic asso-
jects affecting rate conditions is dis
tributed. and the proposal is now
made that the docket be bulletined
for general public information.
''The same feeling of publicity ex-
lists In many other departments Of
railroad.
Public opinion is a greater factor
for clean, open methods Of good busi-
ness prudence than anything yet de-
veloped for business guidance.
80 great has been the reduction in
the rate in both freight and passenger
traffic, although the Chicago & Alton
carried 10 per cent more passengers
and almost 100 per cent more freight
in 1907 than it carried in 1887, its net
earnings increased only $744,791, or
23 per cent.
Had the Chicago & Alton received
the same rate per ton mile in 1907
that it did in 1887 (namely .946 cents
per ton mile) its earnings from
easR frssSt aSns w91a oEe haHs Ana if Se
same rate as obtained in 1881 had OBJ
tanned in 1907 its earnings from
freight alone would have shown an
increase Of almost 100000.
Whatever may be the universal
as to overcapitalization of this proper
ty, the statements furnish proof that
such capitalization, whatever the i'm
pressions created. has had no effect
whatever in causing the fixing or the
adjusting or in any degree whatever
influencing the rates obtained, for
these are nearly 25 per cent lower at
the present period than they were in
1899.
"I feel quite sure in making the
statement that so far as being able to
reproduce the Alton road as it exists
today for the amount of its present
Capitalization, it can not be done, If
we take into consideration the en-
hanced value of realty In the various
large cities occupied by the Atoms
lines, also the enhanced value of farm
lands adjacent TO it's property, let
alone the cost of track. equipment
and all the other facilities.
"The gross returns in receipts In
dollars invested in railroads OF the
United States are less than the re-
ceipts either from manufacturing or
the moneys invested in agriculture
have been. The interest reward, or
profit, on each dollar invested in rail-
roads is "A per cent, while that of
money invested in agriculture is 9.S
per cent and in manufacturing 15.1
per cent
"a merchant or manufacturer, in
determining the value of his business
or the profits and losses on same,
takes into consideration the cost OF
his plant, or what his plant would
cost him to reproduce. Then is taken
the cost of his goods, or the produc-
ton Of his goods, and the profit and
loss is what he finally receives In the
sale of his goods, less the cost of
marketing.
"a railroad company is in no sense
different. It's plant costs so much, or
1t would cost so much to reproduce
its plant Its facilities of all kinds
cost SO much. or so much to repro
duce them. Its service is what it has
to offer the public, and what it gets
for its service is the profit or loss, less
the cost Of service.
"I mention all of these matters SIM
DIV because of my feeling and BELIEF
that there are two sides TO the rail-
road proposition; 1t is a great public
question, and to the railroad manager
the potential factor, cost, looms up
greater and greater because OF the
margin between this and earnings
continually getting closer: fet nave
that confidence in the ultimate Judg-
ment of the business men Of this and
other communities that when calm,
dispassionate view or study of the
situation may be taken and shai! nave
been made it will cause renectlon TO
the extent of saving and believing the
wave of unpopular public sentiment
against steam railroads generally is
unwarranted, and must be curbed be-
fore the damage becomes frrepar-