The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-01-06
MONDAY, JANUARY 6. 1905.
Turmoil AMI anxiety nrc insepnra-
bic from Ercntncss.-alncnulny.
FINANCIAL TROUBLES OF RAIL

The financial troubles which nave
befallen our whole country are vari-
ously explained. 1t is doubtful II all
the potent reasons which produced
thesa troubles are apprehended and
appreciated by any one person. IL
would require knowledge of condi-
tions and facts not yet fully disclosed
in order to satisfactorily and seen
tjflcally elucidatc the economic laws
which have asserted Themselves In
the distress now abroad In the land
1t seems idle to lay all the blame
on any one man or set OF men. Neither
Mr.. Roosevelt nor al! the Harrimans and
Rockefellers and Ryans combined could
have alone convulsed this country as
1t has been convulsed. Whilo 1t is true
that Mr.. Roosevelt no more caused this
panic than Robesperre caused the
French Revolution. yet Mr.. Roosevelt
has, like Robesplerre, indissolubly as.
ISOLATED his name with those who de-
sired a.revolution, and who have re-
toiced in the calamties which have
afflicted the objects Of their an!n1osity.
Such persons console themselves with
the reflection that from the beginning
of the world the innocent have suffered
with the guilty, and that at is the
will OF Allah
The wrong that has been dons by Mr..
Roosevelt and his co-worRers, State
Legislatures, railroad commissions and
such like, Is that they deliberately shut
their eyes to the most patent truths and
recklessly aggravated the troubles,
which at best they could only have al
leviated and not averted. They found
man drowning In water beyond his
depth, and helpless, but as he was
very unpopular person they thought
they would crafty his enemies by
giving him few more ducklngs.
The railroads were actually put in
the same situation that Pharaoh put
the Hebrews when he demanded the
full toll OF brick, but refused the mate
rial-the straw. There were insistent
demands by the travelling and shipping
public for increased facilities of every
sort-more and better trains for pas
sengers and freight, more and better
termina! and depot accommodations.
more en- gtnes and cars. double tracks
and side tracks. The railroads were
struggling to respond TO these demands,
and had TO make heavy calls both on
labor and capital. But labor and cap
ital. thus being in great demand. could
and did exact unusual terms. The
main resource the railroads had was
the good credit which their earnings
gave them. While these were large,
they did not increase in anything like
the same ratio that their expenses in~
creased. Their only hope then was to
increase earnings still more and the
lifeblocd Of earnings We're the rates.
The two causes which are most plain
~ responsible for the loss OF net earn
ings by the railroads are first and by
far the most lnlportant--the enormous
increase OF cost OF operation. due to
the great increase of wages and reduced
efficiency OF labor and the increased
cost OF material; and next the reduc-
ton OF rates. Atthe very time when
by all the just laws OF economies, rates
should have been Increased to meet an
Increased cost, the powers that be said
"cut the rates down." and they Gu,
them. The situation which has been
produced will not be settled speedily
There Will be painful struggles before
III an adjustment Is reached. The stand.
ard OF living in this country has beer
8 and is too high, and this extravaganza
s IS not confined to any class. These
habits arc hard TO change. but unit
\ they are changed we cannot expect t.
set down to rock bottom.
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