Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1908-07-27
THE RAILROAD BUSINESS.

The hAll-hOAD bOSlNtSS.
We print elsewhere this morning
the remarks of President E P Ripley
of the Atchison system concerning
the difficulties with which the man.
agements of railroads find themselves
surrounded, a reply 10 a member of
the Chicago Association of Com
merce in opposition to the proposed
increase of freight rates.
Mr.. Ripley's reply does not go
directly into the merits of the rate
question, but rather to certain state
ments made by the opposition to the
proposed increase. 1t is instructive
in that it describes conditions of
their information only from political
blatherskites, are not aware.
1t is shown that in the twelve
years of the Atchison reorganization
there has been received by the stock
holders and Landowners four per
cent on the capitalization. There
has been a surplus of about the
same amount and it is this surplus
which has attracted the attention
of the critics of the road.
Yet, Mr.. Ripley explains, every cent
of this surplus and 500, OOO, 900 more
have gone into betterments and i'm
provements for the reduction of the
cost of operation. 1t is shown that
investors in railroad enterprises
have been content with smaller re-
turns on their investments than
the persons engaged in any other
business; that a business man of
small capital could not survive on
the rate of profits which owners of
railroads have received during the
last twelve years.
The Atchison, on account of its
physical condition, is more favorably
situated than most of the other large
plies with still greater force to
other systems.
The period covered by Mr.. Rip
ley was one of general prosperity in
the railroad business until a year
ago. Yet all that time the harvest
Of the railroads was by far proper
tionately less than that of any
other enterprise.
But the railroad, on account of the
gigantic character of the undertaking,
was the first singled out for regula-
ton by the federal government and
the various state legislatures. These
regulations have so hampered the OPP
erations of the roads that there has
been a still further dimunition of
their receipts. So the extensions and
betterments which had been planned
have had to be abandoned and the
very operation of many roads has
been threatened.
Mr.. Ripley, in common with most
if not all railroad managers, is not
opposed to such regulations as is
necessary to conserve the rights of
the public, but he and all other rail-
road owners are opposed to having
their great properties made the play
things of politicians who are re-
sponsible for the embarrassments
which have been thrown around the
roads and from which there has not
been the slightest advantage to any
shipper or the slightest promise of
any advantage. On the other hand
the incentive to extensions and i'm
provements as well as the means for
making them has been destroyed
This statement by Mr. Ripley
should be read by every intelligent
citizen of the country and should
be compared with the utterances of
the political orators, editors and
magazine writer's whose ignorance
of the railroad business is surpassed
only by their unfaH. .arity with the
laws, language and literature of the
MartianS