The semi-weekly messenger., 1908-01-17
aurbe South and the Railroads

The right of the several states to
regulate railroad rates within their
boundaries Is not questioned. OF
course, there can be no regulation
that Is confiscatory. But principle
is involved in the regulation which
touches the welfare of the public as
deeply as 1t does that OF the railroads
I'VE do not know Of any other section
.of the United States more dependent
for development upon railroads than
the southern states. These states
have enormous natural resources,
which can not be developed properly
without the assistance of outside cap
ital. Much of the capital which in
veB:or3 In other states have placed in
the south in invested in railroad prop
critics. These investments were made
at time when public opinion in the
south was not bitterly hostile to the
railroads, when regulation was not
political issue in every township and
county in which the politicians could
make it burning question" 1t is
not denied that the railroad manage
ment was frequently tactIess, and Of
ten arbitrary. 1t is recognized that
the people of some of the southern
states had just g~;"Tan - 1t times
in respect to discrimlna.4ons. they mad
the right TO redress these grievances
and to demand uniformly just and
equitable treatment. But it is an open
rLo%I Il; a
not induce the .'eople to apply a rem
e0s which may be injurious to the
material interests Of the south as well
a. to the railroads.
Capital will not promote railroad en-
terprises Or any other undertakings
unless it has reasonable assurance of
a fair return on its investment No
business man in the South would in
vest his funds in a project which was
subject every two years, or whenever
state legislatures meet, to regulation
which might stop short only of con-
fscatiOn. In scaling down the rates
which railroads N the south may
Charge for hauling freight and trans
porting passengers southern legisla-
lures may have ample warrant in the
law. That is question for the high
est court in the land to decide. The
SeabOard Air Line may not have srf-
fered greatly from the reduction In
rates very recently established by the
southern legislatures. But is it not
probable that the prospect Of further
1egislatiOn-of continued agitation for
even more drastic regulation would
make it difficult for any railroad in
the south to borrow money even in a
time when financial conditions were
normal? AT a period of financial
stringency is it probable that oats de
capital would find it's way into a re-
glon where there was disposition to
deal with railroads in a spirit Of i'm
piacabie, il not unraasoning hostility?
We do not believe the business in
terests of the south and the thought
full men of that section desire any
regulation of railroads which in spirit
and effect is both just and wise. We
do not believe they approve of policy
which would bring disaster upon the
railroads in retaliation for past wrongs
which the people may have suffered.
That would not be sensible. We think
the public is entitled to protection. not
only from railroad corporatiors, but
also from legislatures which act hastily
and thOughtleasly sometimes, when ac-
ton should be taken only after long
dellDeration and searching inquiry We
can not conceive that enlightened
southern men are anxious to put the
south in a position in which it will Of
fer fewer inducements to capital. What
the best southern opinion should do is
TO demand tair play for both capital
and the public-not in a sentimental
way, but as a practi 4,i business propo-
sition. The south wants more rail-
roads. 1t wants better equipments
for the railroads it low possesses. 1t
will find it exceedingly difficult to Sc
cure outside capital for these purposes
unless 1T can convince investors that
their bonds and stocks will oe pro-
tected from the hostility and, in many
cases, the ignorance of legislators
About one-tenth of the wealth of the
nation is represented by railroad prop
erty. A vast army Of toilers depend
upon the railroad wages. The money
which the railroads disburse in wages
and equipment finds it way almost
immediately into the channels of bus
mess. Therefore when state legisla-
lures undertake to protect the public"
they should recognize that the public
is composed of various elements-each
of which is entitled 10 as much con-
'sideration as the other We do not
think this principle has been fairly
recognized in the anti-railroad agita-
uon in some southern states,
NO other organs of the BODY are
,pSCpnfia1 fn