The Beaver herald. [volume] (Beaver, O.T. [Okla.]) 1895-1923, 1909-08-05
RAILROADS IN OKLAHOMA
JOHN w. GATES TELLS WHY
THEY ARE NOT BUILDING
WAS WIllIHG TO INJECT ...llIGEs
Constitution ard Laws cauced Him
to NEUTRALITY-SUSPICIOUS. to be
Initiated to the Voters
~ Of the State

Oklahoma City, Okla-, June 2S.-
When the building of new railroads
in Oklahoma stopped about the time
Of the constitutional convention. be-
cause of the uncertainty Of investors
as to what the outcome of untried leg
islative experiments would be, there
was great disappointment in those
portions OF the state without rail.
roads, and yet at the point of seeing
them constructed, surveys having
been made and rights of way nego-
tiatsd. Other communities that /. I'd
raih oads, but needed more, were no
less disappointed.
In Oklahoma, as in all new coun-
tries. the development of natural re.
sources was made possible almost
wholly by railroads. without which
there would have been no available
markets, and without markets the
richest resources are practically with
out commercial value.
The present need of additional rail-
roads in Oklahoma is more imperative
than ever, yet beyond a small mile
age that had been contracted for prior
to statehood there has not been foot
OF new main line construction since
that time. Unless this situation
should change, no one may safely
guess when more railroads will be
built, and IL the change should be too
long delayed, even its final coming
might encounter a weakening in the
nations phenomenal prosperity Of
the last ten years, which would mean
that the building of new railroads
would not be attempted under any
circumstances, whatever the local in
ducements.
One Of the most successful promot-
ers Of big financial enterprises in the
United States is John W. Gates, q
man of great wealth. Gates came to
Oklahoma several weeks ago and mar
yelled at its undeveloped resources.
He was so impressed with what he
saw that privately he declared his will
lingness to make heavy investments
in property and In the building of a
branch line of the Fort Smith & West
ern railroad. of which he is one of the
principal owners, II 1t were found
that the much disputed constitution
and laws of Oklahoma were not un
friendly to such enterprises.
Gates suddenly and abruptly aban
dopcd Oklahoma. of which an explana
tion may be found in the following
correspondence.
w. w. Bierce, of Oklahoma City. Is
personal friend of Gates. On May
26, 1909. Gates wrote this letter to
Bierce:
Dear Mr. Bierce:
II enclose herewith letter received
from Mr. Harris yesterday. togethe,
with opinion of his attorneys on the
laws of the state of Oklahopa. This
absolutely kills the project I'm my
mind and accounts for there having
been no new railroad building since
Oklahoma became a state. Unde
these circumstances | cannot consent
to invest any money in Oklahoma r
r. building at the present time.
'T have decided to sail for Europe
not later thar June 9th.
with regards to Mrs. Bierce and
asking you to return che enclosed let
tiers for my files, am, yours yer!
truly--Jobn w. Gates"
Two days previous to the foregoin,
Gates letter. the following letter Il
Mr.. Gates from John F. Harris. o
Harris, Winthrop & Co.. of New Yorl
City, was received:
Dear Mr.. Gates.-Referring to th'
subject Of the construction Of rail
road from Oklahoma to Wichita Fall
70 which I have given considerable
time and thought since my return t
New York.
"My railroad friends assure M
that no branch line will pay in th
state of Oklahoma or elsewhere a
the present time; that the only profit
able railroad today is a main lin
railroad. railroad that has delivere,
to II very large amount of freigh
from various branch roads so that II
tonnage per ton mile is very large.
Furthermore, bankers and other
with whom we have heretofore bee
associated in various enterprises, ar
very reluctant, indeed, in some In
stances they absolutely refuse to be
come associated in any enterprise 4
the state of Oklahoma until its pref
ent constitution and laws are mod
ned. They realize that Oklahoma is
great state today. and that 1t will b
r-eater in the future. but its constitl
tion and laws are such as to so 81
riously threaten and interfere wit
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Copying an English Law.
x.rgaty ousine IN the indefatigabl