The Calumet news., 1911-12-09
NEED MONEY FOR FACILITIES
Problem is How to Lay Aside
Sufficient Capital
President Daniel Willard OF Baltimore
& Ohio Addresses Governors
At Baltimore.

possibility that the next period OF great
industrial activity In this country may
find the railroads utterly unable: to
carry the greatly augmented burden
imposed upon them, and, that their
partial failure to meet the situation
I'm 1906 and 1907 has furnished sufIl
Client foretaste of what such condi =
tion would mean, was the warning note
sounded by President Daniel Willard
of the Baltimore & Ohio Railroad i'm an
address at a dinner here last night
to the visiting governors of southern
and western states and railroad OFF,
cials.
Mr.. Willard continued in part as
To-day the presence of a surplus
above interest and dividend require
ments as the result of a years opera
ton is looked upon i'm many quarters
as evidence of such a degree of pros
perity as to justify a reduction OF
rates or an Increase of wages or both,
and it has come about that the rail-
road is well nigh unable to effectively
resist either.
"The capital requirements for the
rext five years will not be less than
$500, 900 per year and we have most
excellent authority for believing that
they may approach the enormous sum
of 81 900 100000 per annum. The pro-
roads at the present time is where
and by what means, is TO be obtained
the great amount Of new capital need
ed to provide the additional facilities
meet the requirements of a growing
country-and when finally Obtained
how will the additional obligations for
interest or dividends be met? There is
little. IL any ground under existing con .
ditions for hope of large reward i'm
with railroad investments.
and even the stability of moderate re-
turns Is frequently questioned. When
the people decide To exercise their
right to regulate-by law provided,
they took upon themselves at the same
time, the responsibilities attending
the exercise of that right. There can
be no evasion of the responsibility ac-
the exercise of power.
Public Sentiment Changing.
"The men in charge of the railroad
at the present time have
nearly all worked their way up slow
y from the ranks. They appreciate
fully the opportunities afforded them
by their position, To be useful to peo-
pie and communities served by the
properties with which they are con-
nected. But who can blame them-who
ran criticise, If in view Of all have
said, they hesitate to recommend ex-
which would add largely
TO capital liabilities. while feeling un-
certain about their ability to meet the
increased charges? The remedy which
have I'm mind rests upon no other
than the inherent fairness
Of the American people.
"Thc people | believe, are beginning
10 recognize that a policy based upon
ample and efficient transportation fac
lities, with such rates and conditions
as will permit the roads to pursue u
LIBERAL, but not extravagant, program
lf maintenance and expansion, Is much
better for the country as a whole than
, policy which is bound to result event
ially I'm lack of facilities and all
hat the term implies.
Appeals to Governors.
"The situation is not unlike a quar-
.el between two friends-each of whom
s willing to make up but waits for
he other to speak first. Who better
'ould act the part of peaCemakers than
he distinguished governors who have
1onored us with their presence this
,vening? Who can estimate the weight
IF men and for such purpose? Lei
Ihem send first. il they please for
hose who can speak for the roads
md ask them If the statements I have
made concerning the situation are
rue. III the answer Is mo" then |
have been mistaken, and my fears are
If the answer Is yes
hen | submit there is no more i'm
portant duty confronting a chosen SER
want of the people than that OF in
forming himself concerning all the
facts and then using such influence as
he may possess to bring about such
an understanding as will allay the feel
ng of doubt and uncertainty which
rests upon the railroad managers to-
lay. and which serves to chill initiative
and discourage enterprise"