Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1912-10-01
Situation as Viewed
From Wall Street

reason why the roads should be treat.
ed less favorably simly because they
are operated as private enterprises.
But quite apart from the justice or IN.
justice Of the present attitude OF the
government is the future Of American
railroads upon which the development
of the entire country so absolutely
depends. II the transportation sys.
tens Of the country are to be starved
and their natural development retard.
ed. industry and commerce will cor.
respondingly suffer. Such result
with all Its accompanying derange-
ment and discomfort Is inevitable II
the necessary development of trans.
portation is denied. At present the
failroad facilities of the country are
in many respects VIGOROUSLY made
quate, and the demands for transpor-
tation are last pressing ahead OF the
abilities OF the roads to meet them,
With great trunk lines we arc com.
paratively well supplied. but the III
termediate n work Is still far from
complete, and vast sums are needed
for improvement Of terminal facilities
and for general reconstruction pur'
poses. What has been done in New
York by the great lines terminating
there must be done on similar scale
in many other cities. Branch lines
must also be built, smaller systems
must be connected up and single lines
must be double.tracked. Not long
ago one OF the leading railroad man
ayers startled the world by saying
that the United States would require
81. 200, 100000 a year for Iivc years.
As a matter Of fact, this amount has
already been much exceeded, and now
comes another manager who asserts
that American railroads will require
81, SOC, 10000 annually for the next
eight years. But how are the rail-
roads to raise these vast sums III not
permitted to earn a fair return on the
new capital? Under existing condi.
tions the roads can only raise new
capital by short term notes or bonds
paying relatively high rates Of inter
est. This means an unwontcd in.
crease in fixed charges. Little ca2l-
tai can be raised by stock issues for
the reason that investors will not take
stocks whose ability to earn fair re-.
turns is doubtful. That there is plen.
ty of money to invest is shown by the
rapidity with which subscriptions are
taken for the many new industrial
enterprises which offer much better
results chan the railroads. Public
utilities such as gas, electric. city
railroad and other public service cor
porations under the regulation OF
State commissions are also in good
demand, for the reason that where
justice and fair dealing rule In gov.
eminent supervision such invest
ments are actually preferred by inves.
tors on the theory that they are i'm
mune from malicious pOlitical attack.
But the railroads OF thescountry can
get no such treatment. The Inter-
state Commerce Commission persists
in its policy OF refusing the roads
any advance in rates, in spite OF the
fact that every other line Of business
In the country is compromising itself
for increased expenses by securing
better prices for its services. The
present policy Of the Commissioners
is unjust and injurious in the extreme.
1t is obliging the railroads to pile up
fixed charges at a rate which II con-
tinued mean certain embarrassment,
and is choking the natural develop.
ment of the country's railroad facili.
ties. II within few years the latter
are found inadequate, the Interstate
Commerce Commission must be held
responsible and not the railroads.
The latter may have been guilty OF
some abuses in the past, but 1t is not
the part of the l. c. u. to punish the
roads, nor to act with prejudice, nor
to pander to political opinion by ham.
pering the railroads. Whatever the
latters misdeeds, the benefits they
have done the country vastly out
weigh all harm, and 1t is high time the
government aWakes to the necessity
of treating the roads with intelligence
and liberality. As matter of fact
business interests will be hurt vastly
more than railroad Investors by any
stoppage Of railroad development
The prospects are ultimately for a
more active and higher market I'm.
favorable political Developments may
OF course precipitate reaction, but
should the election prove satisfactory
to business interests 1t will have a
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