The Breckenridge news. (Cloverport, Ky.) 1876-1955, 1909-08-25
The Prospect For The
Common Carriers


than they can handle"
An immense, an overwhelming move
ment of commodities is the outward
and visible manifestation of prosperity.
1t suggests and it is commonly accepted
as the realization of ideal conditions
conducive to happiness andthe common
welfare.
To whose advantage should such
conditions inure if not to that of the
great common carriers'
A few years ago, before demagoguery
gained momentary ascendency and
upset the public confidence, we were
met with a new proposition in the eth
les of transportation, which might be
phrased thus: Under certain conditions
the net of a railroad is inversely as the
magnitude of of its gross.
In other words, after fixed point in
the operation of a railroad has been
passed its net earnings decrease in
more or less exact proportion as its
RIOSS cal mugs lHSACdoSs
A railroad which is earning $4,000
a mile meets it's fixed charges, dis
charges all its obligations, provides for
renewals and betterments and distri-
butes satisfactory dividend to its
stockholders.
AS matters become more prosperous
its earnings advance to $l2, 500 mile
and it continues to NEE its fixed charges,
discharge all its obligations and distrib-
ute a satisfactory dividend to its stock
holders. Renewals and betterments
are overlooked.
With still increasing prosperity its
earnings advance to $4,000 mile and
it meets it's fixed charges. discharges
its obligations, goes head over heels in
bebt for renewals and betterments and
distributes to it's stockholders dividend
which it has not earned.
If prosperity maintains its increase
and the gross earnings are still abrupt
ly enlarged the railroad goes into the
hands of a receiver.
There are railroads which may at no
very distant time repeat this expert
ence.
The strongest of our railroads have
taken their recent lesson to heart and
are prepared for a greater expansion in
the transportation trade than has yet
been known. With such roads the ratio
of net to gross earnings will not be
seriously changed by the increased
movement. But for most railroads
prosperity has its terrors, and they are
even greater than those that follow in
the wake of hard times erybody
has to take his share of the latter, but
in the former the railroad suffers alcne.
On it's surface the railroad condition
of the present is the most hopeful and
the most tsuper6cially) satisfactory
that has been known. The Precipitate
return to sanity, imposed by late con-
ditions, has induced sound economic
practice, and this is as apparent in the
efficiency of the workers as it is in the
abstracts of operation. How long will
the railroads hold to this wholesome
state of things? We do not know.
There are signs in the air that are dis
turbing. There are symptoms ofan ex
pansion that is premature. There is
To c,,ffivrr fhof &c n1 hx the
spirit of competition but is promoted by
the everlasting personal equation and
by advantages which if they exist are
not intended for the public or for the
stockholders.
AS for the attitude of the Federal
Government, it is of unimpeachable
III banity. In saying this we mitigate no
particle of our disgust and abomination
of the corporation income tax, feeling
engendered by its inherent dishonesty
and the scandal of its parturition. What
we desire to imply is that no respect
able and decently managed railroad has
anything to fear from Mr.. Taft or from
his man Vishnu. There is nothing in
danger except dishonesty, and if this
Administration can extirpate from our
corporation management whatever
there remains in it of dishonesty it will
do nothing else that will win it greater
appreciation.
The Sherman antitrust act is to be
amended, but its amendment need ex-
cite no alarm in any honest corporate
soul. 1t is proposed to make it less OF
Rule Appropriate for Guidance in
the Violent Wards of Lunatic Asylum
and more of an ineligible and reput-
able enactment. AS it stands it is dis.
grace. 1t was passed not to be enforced
but for sheer demagoguery and vulgar
trickery. 1t remained upon the tables
of the law until it was taken up for pur-
poses of blackmail and foul politics.
The sooner there is an end to it the bet
ter.