The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1908-07-01
RAILROADS IN BETTER shape.
WORST OF DIFFICULTIES ARE
OVER, 1T is BELIEVED.
Commissioners Lane, Of the Inter-
State Commerce COmissiOn, Takes
Very Optimistic View Of the Sit
uatiOis-Thinks Improvement Will
be Rapid From Now On.

Washington, June 28.-"Returns
from the railroads generally show
that those roads not dependent upon
coal. steel and lumber industries have
been doing very well recently" said
Commissioner Lane. on the Inter-
state commerce commission, today.
"Of course. they have not done as
well as last year. Generally they have
decided not to make any reductions
either in wages or in rates of freight
affecting the next three months. which
Is an indication that they believe
business will keep up
There are some curious things
about prevailing conditions continu-
ed Mr Lane. /" for instance. the Lehigh
Valley the other day gave US report
on net earnings for the first Ave
months Of the present calendar year
together with similar reports cover
ing the proceeding FIVE years. and the
showing this year was larger than
that Of any other year during the
period indicated. With the opening Of
the steel mills at Pittsburg and Of the
car shops more men will be employed
and there will be larger demand for
material as we'll as labor that has pre-
vailed for some time. The opinion Of
railroad men Is that we have passed
through the worst Of the railroad Diff
iculties and from now on we will
gradually recover from the effects Of
the panic. The prospect for large
crops In the West Ii extremely good.
Railroad men do not expect normal
conditions to be recovered suddenly,
but look for steady improvement. In
my opinion this Improvement will be
much more rapid than some OF the
lugubrious prophets have been telling
us. because fundamentally there is
nothing In the United States either to
create or confirm q panic.
fs The railroads must spend money
in maintaining the railroad and equip
ment OF their lines in order to meet
the demands Of commerce. because
they are most seriously embarrassed
when they are not able to handle busi-
ness offered to them. and there is no
doubt that there is an abundance Of
money in the United States which can
be secured for legitimate railroad in
vestment. This was shown In the
floating Of the Pennsylvania bond is
sue.
I'm this connection I think people
ought to understand that the Inter-
State commerce commission has been
OF valuable service to the railroads
OF the United States during the past
six months. because 1t has prevented
q rate war between the roads and the
maintained rates. predict that the
railroads themselves will come to
bless the railway rate law by means
OF which the roads have ben able to
protect themselves at a time when
their nerves were wobbly. If We had
six or seven years ago such financial
disturbance as took place last Octo-
Der. the railroads upon finding that
their earnings were falling of would
have gone into the business Of rate
cutting and possibly large number
Of receiverships would have resulted
The railway rate act is admitted by
candid railroad men themselves to
hae been Of inestimable value. The
enforcement OF the law against re-
batting and our tenacious purpose to
stop discrimination has held them up
to a conformity to the law that is
without precedent"