Pine Bluff daily graphic. (Pine Bluff, Ark.) 1893-1942, 1912-12-21
HILL SAYS We
NEED TERMINALS
Railroad King Tells How
Credit of Railroads Be-
came Impaired.
CA RS M UST MOVE
Canadian Minister of Labor Also Dis.
cusses the Need of Terminals
How Business Men Lose.
CARS MUST MOVE

the commerce of the United States
was prophesied by James J. Hill,
the western railroad king. during an
address before the guests to the an
nual dinner of the Railway Bus ness
Association here last night.
Mir. Hill said that the credit of the
railroads had become impaired be-
cause Of decreased earning power and
that where it was possible to IA Sc
unlimited money a few years ago a
plea to the investing public of the
present day would NEE, with no re-
Spouse.
The cruclality Of the situation
res;s upon the speedy erection or con
sitruction of term nails or tie enlarge
ment of ;.hese now in use. This alone
said Mr.. Hill, can save the country
from commercial disaster. To bear
out his predictions, Mr.. Hill sub
mitted figures which showed that the
fire ght ton mileage be tween the years
Of 1910 end 1911 grew eleven times
as fast as the trackage and five times
as fast as the equipment.
when the railroad yards are fill
ed with cars that cannot be moved"
said Mr.. Hill, the railroad loses
portion of it's business earnings; but
the bus ness man loses larger share
of his trade and the working man
his employment. What is really need
ed is the movement of cars. There is
bu one possible remedy-enlarged
terminals
To provide for the building of these
vised that the railroads be allowed
to retain and earn surplus equal to
80 Fer cent of the amount they pay
out in dividends, to be used for emer-
gencies and applied to improved fac
ilities.
Another prominent speaker of the
evening was the Hon. W. L. Mac
Kenzie K ng, former Canadian Min
lister of Labor. Mr.. King discussed
the dominion's me God of preventing
strikes and lockouts in mines, on
street railways and railroads, steam
ships, telegraph and TELEPHONES in
and power works.
TIE arbitration act Of the DOmin-
len, said Mr.. King, included compul-
sorry arbitration by appointed boards
before the strike or lockout was or
dered. He held that this method
practically elmin ated the danger of
labor troubles.
Mr.. Hills speech follows in part:
The main question back of build
ing enlarged terminals IS financial.
Large sums of money must be raised.
What security can the railroads Of
fer? Many of them have not only
pledged their credit to the limit but
have absorbed a large share of their
surplus earnings that in other coun-
tries would have been paid out n
dividends. Gross revenues grow, but
expenses grows faster. During the
first seven months of 1912 cperat-
ing revenues increased 3.3 per cent.
per mile as compared with the same
period in 1911; operating expenses
increased 40 per cent. and net oper-
ating revenue decreased.5 per cent.
The additions to taxes and other in
cidental expenses will raise this fig
ure.
Ten or fifteen years ago 4 per
cent. would bring in capital for "a l.
road improvements. The rate has
advanced from l IL per cent TO 2
per cent. in little more than ten
years. The railroads can pay mon
ey only as they are permitted to
earn it. 1t is UP to the people to
say whether or not these terminals
and other facilities shall be suppl ed;
Just as it is up to them to suffer the
severest of the consequences If they
are not.
TIE railroads of the United States
are entitled to both confidence and
relief because they have not abused
their trust in the matter of capital "a
ton. While, to make possible the
raising of money, stock bonuses I'M
doubtedly were given in their earlier
his. ory, it S true of them as whole
today that they have by far the
smallest capitalization per mile in
the world; and that they have kept
heir capitalization law by using for
betterments millions of earn ngs
which in Europe would have been
handed over 90 stockholders, leavingil
the cost of improvements to be
charged to capital account.
"The railways are entitled to con-
fidence and relief because they have
displayed efficiency. The cures
largely given show an increase of
traffic in a year about five times as
great as the increase OF equipment
and II times the increase of mileage.
Yet the machine has been hauling its
load because efficiency has been de-
veloped. Heavier rails. larger en-
gines, cars of greater capacity, in
creased train movement and the full
utilization of equipment have kept
business moving. The density OF
traffic in England, France and Ger
many should be as much greater than
in the United States. Yet the ton
miles per mile or road are: France,
496, $3.50; United Kingdom. o2e6z2;
Germany, S27,4O0; United States
(fC1nA 071 02e