The Birmingham age-herald., 1908-10-17
Such Is Prediction of Presii- dent Thayer of the PeRn-
 sy|Vania Railroad
ANNOUNCEMENT WORRIES
 REPUBLICAN LEADERS
Richmond Democrats Not Alarmed At Statement That Ex-Democrat Luke Wright Is To Campaign In
 Virginia For MT. Taft.

Washington, October -(Special)-An increase in the near future of the pas senger and freight rates of the railroads of the country is predicted by John B. Theyer fourth vice president of the Penn svlvania railroad system MT. Thayers L.terances are the object of general criticism in republican sources which at this stage of the campaign regardless of the thousands of unemployed are at tempting to fill the empty dinner pail with promises.
 lN~We have been on the defensive thus lar" he said We have felt that pos sibIy some of the criticisms that have been. hurled at us were well deserved. But we believe and hope that the time may come when at least some of our critics may not fare as well as the poor railroad men whom they are now berating.
 For some time there has been an al most constant increase in the cost of labor and materials. The manufacturers from whom we must purchase our ma terials have raised their prices time and again. Coincident with that em- ployes have time and again demanded and received increase in pay. And at the same time there has grown up an insis- tent demand for the so-called regulation of the railroads which has resulted, in this and other states, in direct curtail- mentSof our earning capacity.
 Roads Handicapped.
 Under such conditions it is manifestly impossible for us to proceed with con templated improvements and the work of increasing our facilities. Business men want better facilities in many ways, but under present conditions they cannot be ' given you.
 "A part of the agitation against the E railroads has been directed toward the elimination of watered stock as it is called, and the abolition of freight re- bates. This talk of rebates astonishes me. Men are looked upon today as criminals or little better who not many years ago were considered leaders among men. Rebates and watered stock were considered perfectly proper, and the coun- try and it's people prospered. l say to you, gentlemen, that many of our great western railroads of today could never have been built without the incentive offered financiers by the profits from wafered stock.
 
 in the cost of labor and materials that the purchasing power of the dollar has decreased and as it has decreased in it's relation to us, so it has increased in re- lation to the patrons of the railroad. Under the legislation which has been passed in the last few years, the rail- roads are receiving less money for their service than before.
 There seems but one recource for us and that is an increase in rates for both passengers aud freight. I see no satis- factory reason why such an increase could not be made without disadvantage to any interest but it would immensely strengthen us and enable us to give you these increased and improved facilities which you wish"
 Wright Is Harmless.
 Richmond democrats of the opinion that the Virginia stumping tour planned for Secretary of War Luke E. Wright, the former Tennessee gold democrat, will do little or no harm to the democratic prospects ins the state. Secretary Wright halls from Tennessee and the Ninth dis trict borders on the Tennessee state line, and the interests of southwest Virginia and East Tennessee are nearly identical. The coming of Secretary Wright, though he has been prominent southern democrat and a leader in his party is not resented judging from the expressions of prominent democratic state leaders In fact, Democratic Chairman J. Taylor FL lison says he will be welcomed and ex- tended every possible courtesy. It is as- serted that the republicans have the right to send whomever they wish here to pre- sent their principles.
 Among those who expressed an opinion concerning the possible effect of the visit of General Wright was MT Ellison. lieutenant governor of the state, and
 H.. mttee who is probably better acquainted with existing conditions throughout the state than any other man.
 MT. Ellison said: General Wrights S visit to Virginia to take part in the pres ent campaign will in no wise affect the result of the November election when Virginia will give a larger vote to the democratic nominees than it has given in any previous contest in many years. Gen eral Wright will, of course, receive that courteous consideration at the hands of our people to which his great personal worth and high standing entitle him."
 Economy Necessary.
 Tn going over with the various mem bers of his cabinet the preliminary work incident to his final message to Con gress, President Roosevelt has discovered that the strictest kind of economy will be necessary from now to make q reduction in the dificit which is being pied up at the rate of between $2. 900, GOO <, and GOO a day. The President is anxious to strike a fair balance before he retres from office March
 The heads of every department in the government have been ordered to retrench to the utmost limits. The appropria- tions for last year amounted to more than 1000, 000,000, although strenuous ef- forts will be made to make reduction fin this total, it is doubtful if it can be done. This is largely due to the fact that all of the departments are growing and instead of asking for smaller appro- priations than were made last year larger sums will be imperative This is espec- ially true of the postoffice department part of the enormous deficit of sS500o. : Oo0 now existing is due to the fact that