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

u developed the industries of France
in most astonishing way. Later,
under a system of we'll meant pater-
naliSm all sorts of governmental Of
fees and commissions were created
to regulate these industries and pro-
tect the public; but soon this system
of over-regulation reached point
Where it broke down of its own weight
and sharp reaction to the. "Laissez
faire" doctrine took place.
While this Let things alone policy
is no longer popular it might be well
to point out the logic of it when applied
to present day conditions in respect
to railroads. The theory of the policy
in that Objectionable economic condi-
ton have within themselves the ele-
ments of their own cure. In other
words, that if things are left alone nat
ural causes will produce a remedy
Thus, if railroads are built and prove
very profitable, other railroads will be
built in competition, and competition
will soon divide and diminish profits.
If, on the other hand, railroad build
ing proves to be Improbable, if state
interference and hostile legislation
tend to diminish profits below
reasonable point, railroad building and
development will cease.
Whether there is anything il this
doctrine or not, it is, as have already
said, an unpopular one today, for the
reason that communities are much too
impatient to get results. People who
believe in temperance are unwilling
to wait for the slow process of educa-
ton and the spread of morality to
produce the desired results, but in
sist that temperate habits must be
brought about by law which will
compel total abstinence
In the same way, if the community
thinks the rates they are charged are
too high, they don't investigate the
matter, but they straightway get leg
islation compelling the railroads to re-
duce rates, apparently entirely over
looking the economic results which
will certainly flow from such course
In an undertaking where a large
portion of the capital invested is in
a fixed form-structures, buildings,
etc.-capital once invested cannot be
easily withdrawn. This is more true
of railroad investment than of any
other form of endeavor, and so the
public are inclined to jump at the con-
clusion that because capital has been
invested in railroads, and the railroads
cannot be taken away, and trains must
be operated, they can with impunity
put on the screws" Without COM
menting on the morality of such a
point of view, it should be borne in
mind that the railroad is not COM
pleted thing; that even some of our
most perfect trunk lines are constant
ly undergoing change. Thus, one c :
the country's greatest railways is said
to have been relocated in some stretch
es of its line four different times, in
order to get better gradients, or align
ment; for after all, the final economic
location of railroad is subject to
change until it reaches perfection-the
only perfect railroad being the rail-
road which is both level and straight.
The amount which can be economical
ly spent on railroad and still produce
return on the expenditure depends,
first, on the rate of interest paid for
the money, and, secondly, on the vol
ume of the traffic involved A very
trifling saving per ton of freight or
per passenger handled, spread over a
sufficient volume of business, will war
rant the expenditure of very large
amounts.
These instances are cited simply to
show that constant supply of money
is needed for the improvement and de-
velopment of existing railroads, to
say nothing of making extensions or
building railroads into new country
There is not a railroad man who could
not cite from his own experience doz-
ems of instances where the expenditure
of hundreds of thousands, and even
millions of dollars would, in his opin-
ion, be justified by reason of the econ
omies produced, and yet, in such
| times as these, it is with most rail
roads impossible to raise money. If
this is true o. improvements and bet
terments watch increase the earning
capacity. or reduce the cost of doing
business to an extent sufficient to fully
warrant them, how much more is it
true of those forms of expenditures
in which the public is vitality interest
ed; for example, better and safer
track; better and more commodious
stations; better and faster trains; bet
ter car equipment; the abolition of
grade crossings; and many other
things which | might mention that
are necessary or very desirable, but
do not produce any additional revenue.
The reverse Of the policy which per-
mits things to work out their own sal
walton is the policy of regulation which
is so much in vogue today. Its theory
is tlat all functions in which the pub
lie are generally interested must be
either owned or subject to control by
/ the state; that is, the community at
large. shall certainly not take the
position that this is either an unfair