Arizona republican., 1908-11-11

benefit by promoting competition. In petition usually means reducing rates without much regards for who is hurt. l shall have to confess that some in- stances of railroad wrecking and the many cases of railroad bankruptcy suggest that notion, but I do not be- lieve that either the present or pros pective conditions bearing upon that question justify or favor its retention. Railroad rates in this country, as d body, are very low-much lower than in any other country. Upon the aver age they have yielded smaller returns to investors than any other productive industry that may be compared fairly with the railroad service. Not only most of the states, but the congress has taken a masterful hand in regu- lating and restraining the charges of railroads. so that manifestly the public is amply protected from extOr- tion and other forms of injustice. The pirating of one railroads business by newly constructed rivals that have been practiced in the past, will not be possible in the future. What may be regarded as unreasonable rates by shippers, or unjustly discriminative rates by communities, will in due course be passed upon by commissions and courts, and in the not far distant future--as measured by the life of our nation-we shall have a system or body of rates that will not provoke bitter contention between shippers and carriers, though the usual conten- tion between buyer and seller will not cease. But with all possible improve ments in the existing railroads. the material development of our western states will require and demand much, very much new construction. Much of this new construction. as well as the improvements of existing lines, is now or has been draughting boards The physical problems are solved The building waits only on an easier money market and the revival of business which is sure to come if you and those who must construct and manage these roads are cooperative in good busi- ness sense. If we shall look forward a generation there are thousands of miles of new railroad in prospective demand
 The construction of a railroad any where requires vast expenditures of money. In our country, bordered by two great oceans which are separated by more than three thousand miles of the most varying physical condi- tions of land and climate to be found on any continent. this capital ex9endi- ture with respect to the trans-conti- mental roads in particular was not only necessarily large in the first in stance. but the rapid growth of popu- lation and industry since the first rail was laid called for renewals and changes and extensions approximating the original capitalization. The cost of maintenance has naturally increas- ed. but the cost of operation has not been reduced in proportion to the ex- penditures made for the purpose of reducing it. More than one of the cor porations owning a trans continental line have experienced bankruptcy and been reorganiZed-some of them more than once. All have at times faced great financial distress. Dividends equal to the going rate of interest for long loans on gilt-edged securities nave Deell d recent experience 10 them.
 Thanks to the wonderful growth in population, the vastness of the hidden wealth of forest and stream. of moun- tain and plain, which needed only the magic touch of labor and capital to manifest itself, l think we are out of our troubles. The treasure is there. Our problem is to gather 1t without waste.
 But. as you all know. or may infer