The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-11-24
Rail Lines Rapidly Going Into
Hands of Uncle Sam.
Walker d. Hines, Chairman of
Santa Fe, Gives His Ideas.
EXPENSE is HIGHER
Responsibility of Revenue Now
Rests With Government.
Other Items of General Interest
in Traffic World.

Il
The railroads are in the hands of the
government more than ever before and
are steadily getting more completely
INTO that position, says V, alker D.
Hines. chairman of executive commit
tee of Santa Fe. at annual dinner of
= Railway Business association il New
York Thursday
The rates which railroad companies
can charge are almost wholly controll-
ed by the governments. federal and
state. As 4 practical matter interstate
rates cannot be increased without the
consent of the commission, and. gen
orally speaking, must be reduced when
ever the commission says so. There are
commissions in about 40 of the states.
some with complete power and some
with partial power to control interstate
rates. Almost always, when any COM
mission, federal or state, proposes to
reform any rate adjustment the reform
is accomplished by reducing rates, and
not by increasing them. a commission
almost never sanctions any increase in
a rate, and it is an almost everyday
event for commissions to make orders
necessitatirg rate reductions.
The operating expenses of the rail-
roads are being steadily increased
through governn action, for exam
of railroad employees, increasing the
size of the crews required to operate
trains. increasing the liabilities for in
JurleS TO employees, and prescribing
the compensation to be paid to injured
employees There is a marked tenden-
cy toward increase of legislation of
this character. All such legislation
tends to compel the payment of more
money for the same service at the very
time that the rates received for such
service tend to be reduced by govern
ment action.
Moreover, the laws are requiring in
creased capital expenditures for more
\ expensive cars. for more expensive sta
~tions, and for greatly increased eX-
pense with a view to promoting the
public safety. Likewise, there is con-
slant pressure of municipalities and
of local public sentiment compelling
railroads to make enormous additions
to their investments in the way of ele-
waiting tracks. abolishing grade cross
ings, providing more handsome stations
and more comfortable service, all of
which increases the investment with
out increasing the ability to pay re-
turn upon Il.
Responsibility of Government.
1 am not criticising these conditions,
] am merely stating the facts. 7 want
to emphasize that these governmental
activities have cOnVerged to 4 place
where very grave responsibility rests
upon the governments, both federal and
state The upper and neither mill
1t is q grave duty of the government
to prevent their coming any closer,
and it Is your duty and your interest
to impress that fact upon those who
make and enforce the laws
Doubtless much must be done in the
way of rendering railroad service safer
and better, and doubtless changes IN
rate adjustments need to be made, but
these things cannot be done without /
due regard to the paramount require :
ment that a way must be left for the /
railroads TO raise the money to per- /
form the improved and extended ser
vice which the public demands
In the past revenues have frequently {
been reduced without regard to the finan- Z
ciai needs and additional expenditures
have been required without regard 70 the
question of revenues But in the IL IRE /.
any governmental action must view All
sides of the problem You cannot re-
duce rates and ignore the question Of the II
ability to meet existing and prospective n
expenses and you cannot increase oper-
ating expenses or capital expenditures
and ignore the question where the money n
is to come from.
Surplus Essential for Credit.
believe that governmental agencies
are coming more and more TO appreciate 4
this grave responsibility. and believe
that there is gradually developing an ap-
probation of the central proposition that
railroad companies cannot properly per
form their public service and raise the
hundreds of millions of new money re-
oufred to improve that service unless the
margin between receipts and expenses Is
sufficient to pay an attractive return
t1pon the existing investment and in add
ton to provide a substantial surplus TO
sustain the credit of the companies.
Put tremendous and unceaSlnS work
must vet be done to keep the facts clear
" before all governmental agencies and II
10 keen alive and increase cOmpTehen-
stve sense of responsibility for the gen
eral situation The advocate of any par
ficular measure designed either to reduce
rates or to increase operating expenses
or capital expenditures is likely TO lose
sight of everything except what he Is
advocating
Discourage Unnecessary Reductions
You cannot be too emphatic and per
.sistent in discOuraging all unnecessary
reductions in railroad revenues; in dis
coura ging all unnecessary legal require
ments for increasing operating expenses
or capital expenditures; and in urging
that the government shall not force adj
dftfonaI expenditures even when proper
and necessary without counting the cost
and permitting the railroad companies TO
charge su y rates will meet that cost
do nc believe you can render any
greater as stance in the promotion Of
the public welfare than to stimulate III
every pubic officer a clear appreciation
that railroad legislation has reached the
point where the government has become
in a very large measure responsible for
the adequacy of railroad service, and
must live up to that responsibility in
order to protect and promote the trans
portatiOn service
MEANS MUCH To EAfPORIA.