The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-12-13
Walter D. Hines Of Santa F.
answers Outlook Editorial.
Public Interest Demands Roads
Adequate Credit.
AGAINST THE BONUS.
Trade Unions Don't Like New
System of World.
Other Items of General Interest
in Traffic World.

walker D. Hines, Of New York,
chairman of the executive committee
of the Atchison, Topeka & Santa Fe
Railway company, in a letter to the
State Journal, regarding his article on
Santa Fe affairs in the Outlook, and
the Outlook's editorial on the subject,
reproduced in the State Journal, says:
1.-The article in the Outlook is de-
signed to illustrate and emphasize the
supremacy important point that 1T is
not enough for a railroad company to
earn, above fixed charges, merely an
amount equal to a fair dividend on its
stock; but that in addition It is alb
so1utely necessary for the railroad
company to earn a very large surplus
If the railroad company is to nave
sufficient credit to enable il to raise
the enormous sums which must be
expended in order to keep up and de-
velop the property in accordance with
the public demands and requirements.
"The article further illustrates the
character and magnitude OF these eX-
penditures, their necessity in the pub
lie interest, and that such expendl-
lures are bound to increase year Dy
year, and cannot possibly be met I'M
less in part out of surplus earnings
and as to the balance out OF money
obtained by the sale of new stock or
bonds; and that it is Indispensable to
the successful sale of such stock and
should have the credit which can only
come from the payment OF reason
ably attractive dividends on existing
stock and the realization OF very sub
stantial surplus earnings in addltlon-
s"The point made in this article Is
one which in the past has been almost
entirely overlooked. 1t is one of the
most important points connected with
the regulation of railroads. the pub
lie interest demands that it should re-
lwsE xrek he
and the people.
'SThe editorial in the Outlook seems
to concede the foregoing propositions,
and to concede further that 1t is ne
cessary I'm order to preserve the credit
of the railroad companies and provide
for the adequate development OF their
systems that there should be sub
stantial increases in rates, unless the
companies could increase their net IN
come sufficiently by greater eff
cheney of operation.
1.-THE claims of MIR. Harrington
Emerson, whom the Outlook cites,
amount really to the proposition that
a perfect or ideal management OF all
the railroads of the country would ef-
feet the saving suggested by him. Thfs
perfect or ideal management presup-
poses (a) the putting into effect by
every railroad company in every de-
partment of its operation of a piece
work and bonus system which Will
stimulate the highest degree that IN
dividual effort of every laborer, and
OBJ that every railroad company will
be able to operate as economically in
each respect as does that company
which happens to be most successful
in that particular respect.
''It is well known that the labor I'M
ions are una1terab1y opposed to the
piece work and bonus system, so that
this indispensable part of Mr.. Emer-
sons program cannot be put into ef-
feet except after overthrowing this
fundamental principle of trade union
ISM"
Gas to general improvement in meth
DDS outside of such improvement as
would precipitate this irreconcilable
conflict with union labor. Mr.. Emerson
in his recent testimony before the in
terstate commerce commission declared,
in answer to a question as to the diff
ference between railroads and other in
dustries that the railroads are fully
up to. If not ahead of, the average
ability, and probably ahead OF what
they were some years ago. Mr.. En-
erson made 1t plain that his criticism
of ineff1ciency was not confined to the
railroads. but that, generally speaking,
all Industrial activity was inefficient
much Of It disgracefully so. His testt-
mony indicated that his theory. if ap-
piled, would practically revolutionize
all lines of industry.
1.-THE present situation is purely prac-
teal. There is an imperative public
necessity that the railroads should have
adequate credit. and this credit is on
the point of being seriously impaired
unless additional net revenues can be
had without delay.
TT is interesting to note that the one
railroad company in the country which
has gone furthest in the adoption of
Mr.. Emerson's principles is the Atchi-
son, Topeka & Santa Fe, which did so
with MIR. EmerSon's immediate personal
assistance. And yet this article in The
Outlook demonstrates that despite all
that the Atchison, Topeka & Santa Fe
has been able to do in this direction,
1t Is essential that 1t should have very
substantially increased net revenue if
it's credit is to be preserved and its
system developed in accordance with the
needs Of the country.
But the point of supreme import
ance is that illustrated by the article,
towit: that the public interest absolute
ly requires adequate credit, and that
such credit is dependent upon the pay
ment Of a reasonably attractive divi-
dend, and upon the continuing realiza-
ton of an adequate surplus. This is
a question Of principle which the pub
lie does not understand and which 1t
is essential for the public to understand
if the transportation service of the
country is to be developed in accord
ance with the needs and reasonable
wishes Of the public"
New Position for Berlingetta.
ST. Joseph, Dec. 13.-James Der.
lingetta, general manager of the st