The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-03-20
NO SQUARE DEAL
|. GWEN THE SOUTH
BY THE RAILWAYS
SO Declare Engineers Wallace
and O'Dell. Studying
Transportation Situation
| MILLIONS MUST
BE SPENT BY THE
SOUTHERN ROADS
Or South Will Not Advance in
Accordance With Her Pos
sibilities-Financial Pow
ers Accused of Niggardly
Policy When Dealing
With the South

ATLANTA. GA. March 20.-The
Constitution prints the following from
Tampa, Fla:
Richard Fl. Edmonds, editor OF the
Manufacturers Record. who is visit
ing Tampa. spent To-day on spe
cial train with the noted engineers.
John r. Wallace and j. :. O'DeIl,
visiting the phosphate interests in this
section and sent tonight to the Man
ufacturers' Record an interview with
Messrs. Wallace and O'Dell as to the
railway situation In the South.
Studying the Seaboard System.
John r. Wallace, for fourteen years
chief engineer and general manager
of the Illinois Central railroad. a
man who had much to do with the
expenditure OF 31oo.o0o.0o0 in the re-
building and enlargement Of that sys-
tenn. who resigned from that road to
American canal, and ]. T. O'Dell. for
merry general manager Of the Bal
timore and Ohio railroad. an adviser
of capitalists interested In railroad
enterprises, are in the South making
a study Of the Seaboard system. Mr..
Wallace made an investigation of the
6eaboard and reported on its posi-
biiifies for the reorganization CON-
pany when the company went into
the receivers hands few years ago.
but this II Mr.. O'Delrs first investi-
CATION OF this system.
Probably no man in the country.
however, In more familiar from an
analytical investigation OF the rail-
road reports and methods than Is Mr..
O'Dell with the whole railroad system
OF the South Atlantic States.
Railroad Situation In South.
In q talk with these gentlemen on
the general railroad situation In the
South and the railroad possibilities
of this section, they gave an exceed
ingly interesting review OF the whole
matter.
"The freight traffic of the South
would double within ten years II the
railroads OF the South would permit
it." was the striking statement made
by Mr.. O'Dell In discussing the de-
velopments of this section and the In
adequate facilities OF the railroads
south Of the Ohio and Potomac rivers
to keep In advance OF the growth OF
the country.
The railroads." added Mr.. o'Dell.
instead Of being leaders in Southern
development. are, by reason Of their
condition, taxed even now to their
ability to handle traliic and are not
Ut present making provision for the
inevitable growth Of the South a
growth which viii. be halted to some
estont. or at least retarded. unless
the southeastern railroads are de-
veloped on q very much broader basis
than has yet been done and without
q vast expenditure in advance TO take
cafe Of increased business further
growth would result in a congestion
Of business and a breaking down OF
railroad transportation facilities.
Powers That Conerol to Blame.
'arhe possibilities OF the South in the
way of material development are prac-
ticaily without limit. but the fnan-
ciers who control the railways OF the
South do not seem fully TO have real
tied what can be done In this section
IN the creation OF traffic and the les
SEEMING OF the costs Of handling 1t by
providing adequate facilities. This
should not be charged to the operating
officers OF the Southern railroads, but
to the fact that they have been han
dicapped through lack Of money to
rebuild and reconstruct Southern rail-
roads along modern lines OF efflcisn.
cy.
There Is no question in my mind
as TO the correctness OF the statement
made that the railway business OF
the South would be doubled within
ten years ii the railroads themselves
did not stand in the way. The re-
sources are here. the development OF
the country as whole justifies such
q growth and it Il entirely possible for
II to be brought about. provided the
railroads become leaders In the
South's development by providing the
facilities needed for the handling OF
the traffic upon an economical basis.
Unless they do this there must be
stagnation in the Industrial and agri-
cultural progress OF the South as COM
pared with the almost iimitiess pro-
gress that could he made.
There II no other section OF the
United States in which the physical
condition Of the railroads and the
mileage OF existing roads are 30 mad
equate to the situation ~ In the South
eastern States from Virginia to the
Mississippi river.
South Responds 10 Railway Invest
ment-
Emphasizing what Mr.. O'Dell had
just said about the railroads condi-
tons in the South, Mr.. wallace add
cd that there was no section in the
country in which the railroad bust
ness responded more promptly
through increased earnings to the tn
vestment OF new money. He called
attention to the fact that three years
ago when he made his report on the
Seaboard and advised the expenditure
Of twenty-five millions Of dollars
within the next ten years in the bet
ternent Of the property. he made GER
tain predictions a. to the increase OF
earnings and the decrease In operat-
ing expenses which would come there-
from for each OF the next ten years.
His estimate of gross earnings and
decreased operating expenses have al
ready worked out three years ahead
of time and the 6eapoard lis now max
ing gross earnings equal to his esti-
mate for 1913.
illustrating thia point. Mr.. Wallace
HcAilsd attention to the fact that dur.
I ine hts connection with the Illinois
Central railroad that company OK
pended upon development Work one
hundred million dollars. and Naid.
.~ThtonEh doing this II lessened the
cost Of handling business and thereby
| increased IT. earnings 10 such an ex-
| tent that 1t the present time that
froad Ii paying annual dividends Of {
| per cant. ana Accunnuiating . large
surplus -uh average gross receipts per
u go