Pine Bluff daily graphic., 1910-08-07
D o1ation of Railroad Rates
 To General Business

the Business -h'A''
 .. n,atter how objectionable an
 .s rsnce in freight rates may be to
 personally, we must recognize
 :. p on improvement in general bus
 ass is dependent on a betterment
 01 onerating and financial conditions
 .ho railroads That the. operating
 .,t, are most unsatisfactory is
 .a,1v seen by the latest Interstate
 ..oroo Commission reports, which
 that for the nine months ended Anri, I 1910, eleven railroad sys-
 ms ms all West and North of a line
 rown from Chicago to St. Louis,
 onnared with the same roads for
 be same period in the previous year
 od their gross earnings increased
 hout s50.0oo, ,Oo0,0oo0o, while their
 o+ earnings show a decreace of Q OO0OO0O, and for the month of torcb on the same comparison, they howod an increase of S7,O00,00 gross and decrease Of s96o'ooo.oo net earnings.
 Attention is called to the fact that |bo wage increases, (except a small amount), were not in force during his neriod, and from now on these will greatly increase the operating cost.
 These same railroads had their faxes increased over the previous year s2,5OO ,OO0.O0, or IA per cent and have to pay higher rates of interest m their loans. These roads covering the most prosperous part of the country may be considered represen tative of general railroad conditions.
 During the past three years of poor usiness. railroad expenditures for maintainance were necessarily at the lowest point, and in consequence ] their motive power equipment and tracks now demand a greater propor- l tion of operating expense. No pro- vision has been or is being made for the growing demands of the county, and as transportation is the back bone of business, it's weakness or iu- efficiency cripples every other condi- tion; because all products are valu- able in the ratio with their accessi- bility to the consuming market.
 It is most important to the ship per, that railroads at all times are fully equipped to take care of an increase of his business. The first eight months of 1907 demonstrated that the railroads could not handle the business then offered with any degree of satisfaction. The financial conditions since have not permitted them to even maintain their then po- sltlon. If the then volume of busi- ness were to come back supplement- ca by the three years growth of the country in the interval, transporta- 'lon would be paralyzed; and what "oulo that cost the shipper compar- eo With reasonable advance in freight rates now9 Such an advance would provide the means for avoid Ing this impending disaster. The iron horse needs to be kept in good con- ui'ion TOT the same reason as the iislng horse used for transportation me teamster knows that if his horse 's not we'll shod, we'll groomed and well Ted, and his harness and wagon kept In good repair, that all he vii, save on such economy will be many times wasted in the inefficiency ot HIS transportation, and also ado etea' expense to the shipper. It is eAactiy the same with the railroads sae snlpper has a right to demand
 transportation be ample and ef.
 N ouCCcSS OI ms business ano the development of the countr, are dependent on it.
 The Investor.
 oo this, the railroad must show 'uequate returns to maintain the p'opef borrowing credit and presen,
 piomlslng source of investment tf pl9eufe the, necessary funds to i'm no, e and develop the property as ns neeuea' It is neither the railroad tre, nor the shipper that con ta. o's the situation; it is the inyes o,.t eo. alone who holds the key; with ros, HIS unlnvested dollar the rail ms.. nau cannot extend or improve. nc sh,o na'.er how great the needs of tn, upper n,i or the country may be. e... ".'h all the increasing cost of on ssa'lon, supplemented by ever in rasa sasng and burdensome 1egislativ, Iinss '.'ions concerning their earn a,s s' III 1ace of the fact that the av 1ase s se dividend rate on railroads wa, s,s sss s than 3 1-2 per cent for the pas nes
 years, and rho rY,;+.,