The San Francisco call., 1908-09-06

fornity Of accounting for all railroads
under strict government supervision
an inspection. When it is all done and
in effect he will have the railroads
where the administrative authority of
the government can absolutely know
all about them. They will have no
secrets. because the government will be
on the inside of all their affairs. Dis
ordinations. excesses and financial
manipulation will be impossible, be-
cause those things are impossible save
in secret.
when it comes to railroads no man
is better entitled to speak with con-
fdenee than Professor Adams. And,
supplementing his remark about the
bright future for the share holder he
said:
ssf n such a period of Astounding pros
perity as we have lately passed
through 1t is inevitable that man
ayers of great properties should yield
more or less to the temptation to be
extrayagant. We are an extravagant
people; we insist on extravagant accom-
modations and surroundings, and the
railroadmen have found it easy 20 yield
to the general tendency, to float with
the current. They were not so care
full of details, of the little things, as
perhaps they should have been.
When suddenly the panic came. and
then the depression, revenues were tre-
mendously curtailed. The managements
were forced to seek every possible way
to reduce expenses. They have been
doing this They have Topped off vast
number of these, which will not be
resumed when good times and normal
business return.
What has thus been accomplished
in teaching economy. this generation
of managers-and this not only in the
railroad, but in other lines of business
will last. The men who have been
through this experience will be better
managers for 1t; they will make their
properties more safe and secure divi-
dend earners because of the experience.
You Will see. in my opinion, before long
the opening of a period during which
larger than ever before, and 1t will be
in considerable part because of the
lesson which executives have learned
in closer management"
Professor Adams turned to the ques-
ton OF panics and his study of them
for the purpose of judging what the
future might be expected to contain.
Doubtless you will recollect," ne
said. that two or three years ago
6oOa Atutts VI Tic HdlOIdi lcdQ6TS IN
finance and affairs were giving out
roseate assurances that there would be
no moHe panics. They assured us that,
in the hands of strong men, highly or
ganized and more and more centralized,
business was going to be better con-
trolled than before; that production
and cost could be so closely adjusted
to demand and the community's ability
to pay that there would be no more
maladJustments. which bring panics.
Il was one of the people who didn't
believe these prophets of optimism were
right; and as we have had panic and
depression il is shown that they were
wrong
But i would like TO have somebody
tell me whether this is Il major or
minor depression. / have been trying
TO decide that in my own mind, and
good deal depends. for purposes of
speculation about the future. on which
we decide this panic is.
Let me explain. You know panics
come in pretty regular periods, or
cycles. There is nothing more interest
ing than the study of the periodicity
of depression and prosperity The rule
has been that it takes just about 10
years to complete the cycle: panic. de-
preston. Improvement. full blown pros
perity and then the panic again.
But more than that, there is pret-
ty well established alienation of great