The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-03-04
alton of merchandise will make upon

tation Of merchandise will make upon
them.
The reluctance of investors to pur-
chase new railroad securities = to
which President Hadley calls atten-
ton in his reports another way of
describing the business stagnation-
that is to say, so far as very great
investment is concerned-which now
prevails throughout the United States
Recently railway managers have
been asking their friends this question
ITO what end will there be a great
revival of business activity if the rail-
ways of the United States are unable
to meet the demands for the transpor-
tation of merchandise ?" Many of
them have heard that the disposition
of capital is to make investment in
other fields than that of railroad ac-
tivity because, as the Hadley commits
sion says, these investors look upon
the hazard of other fields as less or
the opportunity greater.
Mr.. George A. Post, formerly a
member of congress from Pennsyl-
vania and now probably without a SUI
periOr so far as information is con-
cerned, is of the opinion that James
J. Hill was not out of the way when
he, as quoted, asserted that from five
billion to eight billion dollars would
be needed by the American railways
if they are to improve facilities SO as
to meet the demands for transpOrta-
ton of commodities when the revival
of business activity comes. Mr.. Post
spoke today of the tonnage which will
be offered to the railways within a
few years, in case business conditions
improve, as som ething fabulous,
meaning by that the amount viii be
so large as almost to stagger the
imagination. He insists that if the
shippers of the United States are to
have adequate railway facilities there
must be expended within the next
three years al least three billion dol
lars for additions. enlargements and
improved terminal facilities and that
five billion dollars will be necessary |
as those existed at the close of the |
year 1910. This statement, Mr.. Post
insists, is not mere guessworK. 1t is /
based upon detailed and carefully |
gathered information.
Where VIII They Get Capital?
But the question is: How are the |
railroads to raise this money? IN
less they do raise it, a great COM
planning outcry will be heard from the |
shippers of the United States and there |
are likely to be accusations that the |
railroad companies are Indifferent or
are asleep.
Mr.. Post is in cordial agreement
with the intimation contained in the
commission report to the eff
feet that if the railroads secure TINS
money they must either earn it or
else obtain it by the sale of new
securities But it is prepoSterouS to
presume that the railroad companies
can spend eight billion dollars in four
or five years after having taken all
this money out of their earnings. 1t
seems to many of our railway man
ayers to be q serious question, one,
TOO which may in the course of a year
or two absorb the attention of the
people of the United States. For there
is no doubt in the mind of any prac-
teal railway manager that business
if the highest possibilities
are to be realized, is in great meas
Ire contingent upon the perfectlng OF
facilities.
In conversation with his friends Mr..
Post calls attention to the results, di-
rect and indirect, which will follow
he expenditure by the railways of the
United States of this imperatively
needed money. This money will be
expended for commodities and labor
The expenditure will of itself serve
greatly to stimulate industry. Mr.
Post is so earnest in this matter that
lie says that not a merchant in the
United States would fail to feel the
luickening impulse to his own bus
ness if the railroads of the United
States are able to do what the fore
most men of the railway world in I
-ecent years-George Roberts. A. J.
1assatt and James J. HilI-have said
hey must do-namely, improve and ]
Expand their systems SO that they may
Keep pace with the growth of business )
u the United States. Our railway !
say that really the great
problem of the present time and the '
will show how the prevailing lack of {
confidence of great investors can be
,vercome so that our railroads may I