The Birmingham age-herald., 1910-11-29
Iron Trade and the Railroads

ySStcIudy
 Iron Trade and the Railroads
 '"The iron market is still inactive and I do not look for any marked improve ment until the railroads begin to buy on a large scale," said furnace company official "The railroads, as everybody knows, are the largest consumers of iron and steel and when they are in the mar ket the metals trade is brisk and healthy.
 While the railroads needed regulation in some respects legislation, state 3>sl national, has been seriously overdone. As regards rates, competition was the best regulator. The political agitation against common carriers within the past four or five years has hurt very much and the public has suffered thereby. Before the interstate commerce commis- sion was invested with practically arbi- trary power. both freight ana passenger rates In the United States were lower than in any other country In the world. We had general prosperity and we would today be making new high records in business if it had not been for dem agogic agitation and resultant laws which harrass capital and the transpor- tation companies without any real bene- fit to the public.
 "In view of present conditions touch ing the relation of railroads to the public and to capital. was greatly i'm pressed with the frank and sane article by Daniel Willard, president of the Baltimore and Ohio. which I read in the last issue of the Railway World. Among other things MT. Willard says:
 "Tf costs of railroad operation con tinue to go up there would seem to be only one way of meeting the sit uation, and that is by an increase of rates. Any such increase must be ap- proved by the interstate commerce commission. This operates, as I view it, to place the credit of the railroads In. the hands of the commissions for the credit of the railroads will depend upon the net earnings. and the net earnings will be dependent upon the rates re- ceived which in turn rests with the commission.
 "'Capital will not be obtained by telling the man whose money is de- sired that he will be paid a fair rate of return. He will decide for himself not what Is fair return, but what is return satisfactory to him.
 "'The sum of all the freight charges of railroad must be sufficient to fur nish such net earnings as will enable cessary new capital wien needed op favorable terms.
 "I think the roads should keep out of politics. This makes it necessary to take the public into their conn- dence as far as possiblu. so that the public, being fully and correctly in- formed, may act intelligently and fair. ly toward the railroads.
 Perhaps may be permitted to sug- gest some of the things which I think the people should do in the same di- rection. Foreign students of affairs usually pay our transportation lines | the compliment of recognizing that in | this country goods have been carried l proftably at extraordinarily low rates notwithstanding that American rail- ways pay more for their labor than | those of any other country and that the United States has been practically created by the buildinglof railroads
 At home, on the other hand, public dis.
 cussion of our railways seems to be based on the belief that they were con ceived in sin, reared in iniquity and
 that there is no good in them.
 | Why this apparent contrast be-
 tween European opinion and American | opinion with regard to American rail-
 ways? l believe, and the response to | the appeals of our organization dem
 onstrate it. that the great body of com
 mercial and industrial opinion in the l United States, if 1t cared to find a voice, would be found to value highly the
 superior service which they are re- ceiving from our railways and to dis approve any public policy, which might
 tend to restrict their healthful oper- alton and extension. Too often the
 largest consumers of transportation
 and employers of labor neglect to take
 an active part in the expression and
 dissemination of conservative views" Since Census Was Taken Every one notices the large crowds
 on the streets and the large proportion
 Of new faces" said man about town. Birmingham is undoubtedly growing 1 at a faster rate than ever The hotels,
 boarding houses. theatres and churches
 are all in evidence when it comes to the
 matter of indicating the city's growth. A