The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1908-10-06
TOO MUCH REGULATION.

The policy of government regula-
tion of railways has been in force in
Great Britain for many years but re-
liable cables from London state that
the companies are passing through
crisis. Aside from the depreeia
ton in the market values. the return
the capital invested is now down TO
an average of about 81 per cent.
The conditions have reversed in a
few years between the American rail-
ways security as an Investment and
that of Great Britain for when our
companies were passing through the
troublesome times of fifteen years
ago. British rails were regarded as
mere speculations in most instances.
The difference in the conditions now
is largely the result of the different
policies pursued as to capitalizing
expenditure for improvements and
additions to the properties and reg
ulation by the government.
II may be we'll for. us to stop and
consider for little the fact, that
while the British companies have
been loosing ground under govern
ment regulation, ours have been
progressing from mere speculation TO
the standing of first class invest
ments under the policy of non-inter-
ference by the government. The
claim was often made when the rail
way legislation was being enacted,
that government supervision and reg
ulation would tend TO make railways
securities more valuable, through
greater measure of stability of earn
ings. The course of events in Great
Britain, however. has proved this to
have been not Well founded claim,
and it is something which the Am
erican people should take into CON
sideration for two important reasons.
The Improvement of railway prop
erty in the first place depends on the
prosperity of the companies, and
secondly the Improvement of the SER
vice rendered the public depends on
the hetterment of the properties
Hence we should avoid anything
which tends to injure the earning
power unduly and destroy public con-
fidence in the dividend ability.
We are, however. in our legisla-
I ton, following the same lines as
those which has worked so much
harm TO the British companies and
through them 10 the very public
responsible for the laws The dis
cussion of a combination of some OF
the leading companies brought forth
this comment from Premier Asquith.
When we look at the enormous
waste. the unnecessary expense, the
cut-throat competition. the provision
of duplicate and sometimes triplicate
facilities. where one service would
suffice. and the thousand other evils
attendant on the present more or
less unrented services on the rail-
WAYS. We cannot help saying that an
enormous amount OF money would be
saved. trade better served. and the
shareholders given prospect Of
higher dividends. If only we could in
tronee greater coordination. more
simplicity, and greater common sense
into the management OF the railway
system
One great evil is that the COM
missions through which the public
must work are too much given to
fear of public opinion, and another
the ignorance and lack of experience
of the commissions and Law makers
The Interstate Commerce Com
mission and the verious commissions
of some of the states estimated at
S2l. 900, 900 per annum, and much of
the information is of little or no use.
This Is waste equivalent to a tax on
the railways of large proportions.
The commission has also taken a
hostile stand In the matter OF an in
crease In freight rates and some
members OF the Interstate Commerce
Commission in public interviews. have
plainly shown that their idea of con
serving the interests of the public
was to oppose the railways. Bottom ]
Financial NaWa