The Washington herald., 1909-04-04

tell the whole story Of increased faeIli-
ties during the ten years. They take no
account Of the miles OF track In which
light rails were replaced with heavier
rails, Of the replacement OF wooden
bridges and trestles with steel or con-
crete structures, or OF the reduction Of
grades, elimination OF curves. and gen.
eral improvements Of the roadbed-
They take no account Of the extension
Of lock and signal systems. Of the erec-
tIon Of new buildings, and the improve
ment Of old buildings. or Of the increase
I in the average capacity OF locomotives
and freight cars. Taking all these things
into consideration, I think this is a
Icreditable record Of accomplishment with
an increase Of less than - per cent ir
net capitalization.
THE record Of service performed for
the South in that period was still more
creditable. We find an Increase in the
number OF passengers carried one mile
of SCI per cent and an increase IN the
tons of freight carried one mile OF 1854
per cent. In other words, the increase In
/ facilities was materially greater than the
increase m capitalization, and the In
/ crease in service performed was very
largely In excess either Of the increase
IN capital or facilities
Economic Strength Of the south.
Let us now look to the future. The
/ economic strength OF the South lies in
the variety and richness Of its natural
resources and in the agricultural, indus
trial. and commercial adaptability OF its
people There can be prohtably produced
within its limits all the agricultural and
horticultural products OF the temperate
zone and many OF those OF the tropics
Ever since the invention OF the cotton
gin the possession Of almost a complete
monopoly In the production Of cotton
has been an important factor IN Southern
agricultural prosperity. The cotton
plant produces a fiber that Is in world
wide demand. It produces a seed which
yields a salad oil OF great excellence, a
lhealthful cooking fat. a high-class stock
I food. and a valuable fertilizer. and from
its stalk an excellent quality OF paper
can be made.
Under the operation Of that economic
law which tends TO concentrate manfuc-
turing in proximity 10 supplies OF raw
materials. the cotton plant is drawing
the cotton mill and the cottonseed oil
mill TO the South.
Tobacco Source OF Wealth.
In many localities tobacco is a source
OF agricultural wealth and the foundation
OF a prosperous industry.
''The early fruits and vegetables Of the
South are in demand in a constantly ex-
panding market.
The forest resources OF the South,
which with proper management can be
made a source Of permanent wealth. are
attracting woodworking industries OF al
kinds.
The hydro-electric engineer is con-
verting the force Of Southern streams
into power and distributing IL 10 points
where II can be utilized to the best eco
nomie advantage.
Iron ore. coal. and limestone. in close
proximity, are building up a great iron
and steel industry in the South. which in
turn is supplying the raw materials for
a large and constantly Increasing variety
OF Woodworking industries.
southern marble and building stones
are going into monumental buildings in
the North as We'll as In the South
CLAY for the potter and brickmaker.
and wide range OF useful and Orna.
mental minerals abound IN our section.
As you know, prior to the beginning
Of the business depression. the increase in
traffic OF the preceding ten years had
taxed the facilities OF the railways of the
South TO the utmost. How are they "a
handle still further increase Of Sc per
cent in passenger travel and OF l45 Der
cent IN freight trafhc? Is It not apparent
that trackage and other facilities must be
provided on a large scale. and that addi-
tonal capital must be attracted TO rail-
way investments?
Basis of Investment.
THE desire OF each man TO better his
own condition and 70 provide for those
dependent upon him is5the handspring OF
human progress. A man IS not induced 10
invest his money in a farm by the phiIan-
thropic motive Of growing grain TO feed
his fellow-men. but by the desire OF gain.
Another is not moved to build a cotton
factory by an aItruistic desire 10 clotbe
mankind, but by the expectation that he
can sell cotton goods et a profit.
Exactly the same expectation Of gain
leads 10 investments in railway enter
prises- If the money OF capitalists. OF
men and women OF moderate means. OF
savings banks. insurance comuanias
schools. colleges, and charitable iustftr-
tions is 70 be employed in the great work
Of providing highways for the commerce
Of the nation. investors must have reason
70 believe that their capital win be SAFE
and that It VIII earn approximately the
same rate OF profit as IL invested in other
enterprises.
Results of Railway Prosperity.
'On account Of the dependence OF every
kind OF business upon adequate transpor.
tation facilities. and on account Of the i'm
portance OF railway wage-paying and pur-
chasing power as q factor in general
prosperity. not only the owners OF the
railways. but every individual IN the
country IS directly interested in the
maintenance Of proper margin OF profit
as the result Of railway operation.
The fund from which railway operat.
ing expenses. taxes. fixed charges. and
profits must be drawn Is that provided
by charges for transportation service. The
volume Of business done by the railways
Is so large IN the aggregate that a very
small difference in the unit charge FOR
service-a fraction Of a cent per passen-
ger mile or A fraction Of a mill per tor
mle-nay mean prosperity or bankruptcy
The margin between an average uni,
Charge that means bankruptcy or bare
existence. ard one that means fair profits
and ability TO provide improved service is
so small as 70 be insignificant to the
average individual. as compared with the
benefits he derives from railway pros
perity.
What does a difference OF a few cents
In the freight on the clothes a man wears
amount 10 II he can find employment IN
railway construction or operation. or IN a
car shop, locomotive works. or in one OF
the many other industries engaged In the
production OF the long list Of commodities
bought by railways2
'What does slight difference in freirht