Bluefield evening leader. [volume] (Bluefield, W. Va.) 1906-1911, 1910-07-05
THE SORROWS OF THE RAILWAYS

trancontnental lines, says the Rich
mond News Leader. They have been
tondly hoping for permission to i'll
crease their rates. They have been
insisting upon, and proving with cir
cumstantial completeness, the dire
streights to which they were reduced.
But, with heartless disregard for
their woes, the interstate commerce
commission, has ruthlessly ordered q
reduction of from twenty to fifty per
cent. of their present rates. 1t is hard
on them. But what could they do?
The system of bookkeeping now requir-
ed renders 1t difficult we are told, as
we'll as dangerous, to tamper with
the returns Besides, any seriously
over-liberal allowance for operating
expenses, maintenance and fixed
charges, would necessarily reduce divi-
dends by reducing the net revenues.
This would seriously affect the stock
market values of their securities.
1t is very sad as the News Leader
points out. The railways have TO
tote water on both shoulders" and
whichever shoulder they favor the 9th.
er suffers. If their books show small
net revenue, the speculative value of
their securities is injuriously affected:
they cannot distribute their profits in
shape of dividends, and they have diff
ficulty in counting for and disposing
of their surplus. II, on the other hand
their books and annual statements
show business to be good, operating
expenses, fixed charges, etc, to be
normal, and a large and increasing net
revenue, the stock market blooms, {"
but the shippers make an cutlery about
high rates, and down comes the inter-
state commerce commission and or
ders a reduction in rates. They are
lucky If their employees, as a caption
of their woes, do not demand a materi-
al increase in the wage scale, on pain
of costly and disastrous strike.
No wonder the railway management
is at its wits end, and scarcely knows
which way to turn. II is difficult and
dangerous to plead poverty, which
they cannot prove, and runous to the
standing OF their securities on tho
stock market. To boast of riches.
seems to be almost If not altogether.
as fatal; for retribution, in the shape
OF demands for reduced rates and
increased wages, is swift and sure. It
b doesn't make much difference, appar-
emily, what course they may adopt.
they speedily wish they had adopted
the other.
Who can blame them for signing
for the good old times when the bur.
den the traffic would bear was tue sole
measure of rates, and when there was
practically no law of God or man that
controlled their dealings with Ejcor.
ity stockholders or the freight.payi1g
public-when neither had, or could rs.
sert, any right which the management
was bound TO respect.
1t is hard for men specially rail.
way men-to accept and adjust them.
selves to changed conditions. II is still
harder for spectators on the stock
market to hear with patience or re.
spect Of public rights or public de-.
mands which cause the market IN
slump and them to lose.
But these things viii all adjust then.
selves in time. We are srnl I'm fr,
transition stage; but the rights and
obligations Of the railways. and fhe
rights and obligations Of the pubr.,
are becoming more and more clearly
defined and better understood Tho
public is beginning to realize that tn,
railways are or, ought to- be- public
benefactors, not public enemies and
that they-or their spcurity-holdcrg
are entitled TO, and must have ii fai,
and just return ON their actual invest
ments. The railways or their man
agement on the other hand. arc 5r
ginning however, reluctantly. No. -.a
lie that theirs ! not q private ba.
ness from which they have RICH.
10 draw the largest possible profit.
stock gambling VIII also roaIfl. r.
time that tho sccur.fios of those rras
public service corporations. while ir
creasingly sound and stable invest
mcnts. are dangerous or unproftab.
TO fool with for The purpose of spec.