The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1909-05-13

ment in railroads Is indirectly from the
masses of the people whose funds in
the hands of the banks and insurance
companies are invested in railroad
securities.) Regardless, therefore,
whether the ownership of the railroads
is public or private, it is evident that
public necessity exists for constant
and annual expansion; that this me-
ceesity requires an expenditure of
something like six hundred and fifty
millions of dollars per year on the av-
erage; that this sum of money can
only be raised from surplus earnings,
or by borrowing. If. by borrowing
that borrowing must be on the credit
of the borrower.
Note.-It is often said of borrowing
that any one can borrow, but the
terms at which one may borrow de-
pen wholly on the credit of the Dor
rover. During the LIST two years
there are good many cases on record
where great railway companies have
paid as high as nine and ten per cent
for the use of money, thus indicating
very we'll their dire needs, as we'll as
the extent to which their ability to
pa their debts has been jeopardized.
In the face OF this condition of af-
fairs, it is not strange that railroad
officials feel good deal of annoy
ance and are disposed to be irritated
at the disposition of the legislatures,
first to reduce their sources of rev.
enue; second, to increase their expens-
es; third, to demand public improve
ments. For, bearing in mind what
have said at the beginning that rail-
way men claim to be no better than
the rest of humanity, they do claim
to be human, and subject to the same
desires and ambitions as the rest of
the family. Indeed, may say that
in all my railroad experience, have
never met railroad official who did
not want to spend money on his road
as fast as the credit of his company,
the ingenuity of his bankers, and the
approval of his directors would per
nit. This is only reasonable and hui
man. The manager of a single
track line; Re wants to get rid of
many bad grade crossings he wants to
adopt safety appliances; he wants to
reduce his grades and curvature in or
der that he may show more efficient
operation. Is it to be wondered at
that he feels irritated and even peev-
ich xryhA ho cto CT Ia ft,ro adnn.
es passenger fares. or freight rates,
to point at which the operation of the
road becomes improbable? Is 1t to
be wondered at that he is irritated
when the state limits the length of
trains; limits his methods of opera
ton; requires him . employ three
brakemen when he thinks two are suf-
ficient? Is it to be wondered at, when,
on top of all these restrictions and re-
quirements, sundry betterments and
improvements are demanded; and fl
nally, when politicians ride into office
or win political preferment by their
abuse of railway management and
methods, that the patience of the rail-
way man is we'll night exhausted?
What Is the remedy for these condi-
tons? Evidently the remedy which the
railroads need more than any other is
a rest from the attacks made upon
them Railroad operation and manage
ment is complex and involves so many
problems and commercial questions
that what the railroads need Is more
thorough study of the questions and
less disposition on the part of all COM
munities to jump at conclusions. Mr..
Willard, second vice-president of the
Burlington company, covers the point
we'll in a recent address made to a
body of the employees of that COM
pany at Galesburg. He says:
In my opinion. railroad business,
which really means all business, will
recover it's former proportions when
the influences and forces at work dur
ing the last two or three years shall
have ceased doing the things that have
contributed so largely towards bring
ing about the depression which we all
deplore Perhaps that is not quite
clear do not mean that laws already
made must necessarily be unmade,
that wages raised must be reduced,
but we must have rest. We must be
given time and opportunity to work out
the new problems that have been fore
ed upon us during the last two years.
We must be given a chance to find
out what it is going to cost to meet
the new requirements, and also how
much our revenues are going to be
reduced by reduction of rates. Per
haps it will be found that by new
methods growing out of the exigencies
of the case we will still be able to
earn a surplus sufficient to Justify the
resumption of extraordinary expendi-
lures as formerly. If not then, either
rates must be advanced or wages be
reduced or improvements must wait or
be carried on with borrowed money,
and railroads will be slow to increase
their interest-bearing debt under such
circumstances"
In dealing with questions of tais
kind there have always been two
broadly different policies, one the pol