Arizona republican., 1912-06-21
PAGE NINE.

cording to the railway people, threaten the financial and even the physical stability Of the railroads? I am inclined to think We should.
 Every one can readily understand that the country could not prosper were railroad after railroad to go un- der. An impoverished, decrepit, lang uishing railway is handicap to every industry and interest depending upon it for service. Not only so, but when road begins to go down hill it's power to get capital Vanishes, and the funds necessary to maintain the property cannot be obtained-and therefore can- not be spent. Stockholders in course of time suffer the loss of their income. and, unless something helpful be done bondholders also have to starve events which 'it the pockets of thousands indeed, it bankruptcies became general millions of investors would be involved. Is there any danger of this happening? Railroad authorities of sound judg- ment sdy there is.
 WithoG. holding any brief for the railroads, It can be said in all truth the outlook is not inspiring. A railroad manager is not today a manager in the old or full sense of the term He has now a HuperiOr-the interstate com merce commission This body has a maximum of power. but a minimum of responsibility. It can-and loes-order railway income to be reduced without having 10 trouble itself one iota as to how any deficiency in revenue may be made IT rpo1latec mt h,+ is. it is constantly lowering them; but when the railroads wanted this same body to decide whether the engineers wages aiIould be increased the request was refused. Thus we have regulation without responsibility, and thus have the railroads to submit to reductions in income, and at the same time contend with demands for larger expenditures.
 So numerous are the orders issued by the interstate commerce commission lowering freight rates that the news papers no longer can spare space to print them all
 Not few roads of the first import ance are paying out in dividends far more than they are earning. Illinois Central iS not earning 50 cents for ey- cry dol!ar it is giving away in divi- dends. St. Paul is in exactly the same position. More roads than the layman can realize have been systematically "Scrimping." Almost every railroad presiden1 will admit that maintenance and equipment have not been dealt with generously during the last two or three years. Worse still, there has recently appeared a tendency to trans form short term equipment obligations ito permanent securities, a unpardon- able financial sin, for plainly long term bond based on equipment that will go ont of existence in a compara- lively short period is not worth calling ''security''-its security has been cast into the junk heap. Other makehifts have been resOrted to in an effort to keep up appearances and dividends.
 Would the interstate commerce com mission resent a suggestion that it in tereSt itclf in the other side" of the railroad situation? If nothing be dis covered to justify alarm, if nothing be found calculated to check the daily re- luctiOns in freight rates, then the rail- roads troubled investors and some oth- CT intelligent members of the public will feel infinitely relieved Editorial N. Y America, June '.