Iron County record. [volume] (Cedar City, Utah) 1893-1982, 1913-06-20
FRIDAY. JUNE 20. 1913.
The Result to be Expected.

The failure of the Fricso railroad system,
one of the largest in the coutry, with 1920 miles
of track traversng nine states, and the placing OF
the road in the hands of receivers, is causing
a wave of excitement throughout the country
and has resulted in demoralized condition of the
stock market. amounting almost to a panic.
Within the last few weeks railroad stocks have
sold at the lowest figures since the panic of 1907,
and the end is not yet in sight
ONLY this week the United States Supreme
Court rendered decision declaring the Missouri
and Arkansas state laws fixing the rate OF
passenger travel at &c mile, and prescribing a
maximum rate for freight For several years,
principally during the last six years, many Of
the states have been passing arbitrary laws
respecting the rights of railroads. most of which
result in curtang the revenue of the roads and
increasing their expenses by imposing added
duties.
On the other hand the railroad employees,
through the medium of the unions, have beer de-
handing an increase in wages year after year until
at last the breaking point has been reached. The
situation is tersey explained in recent issue of
the Journal of Commerce, one Of the leading
financial journals of the country in the folowin g
language
''The entire trouble, however appears
pany was unable to obtain its necessary cap
ital at all. 1t could not sell shares at any
price because it could not pay dividends.
Labor mas been continuously adding to it's
burden. taxes have been increasing. the cost
of everything entering into the building,
upkeep repairing, and operating of it's lines
has expanded But when it attempted to i'm
prove it's revenues the Government arbitrarily
stepped in with thou shalt not .................
whether the receivership for the st.
Louis and San Francisco road will prove an
object-lesson to the Government and be
blessing in disguise remains to be seen. At
present the weaker class OF our transportation
lines are in dispair. Their credit is gone.
and bankers, where they making loans at
will, are taking full advantage of obvious
necessities A well-known financial author
ity, discussing this phase of the situation yes
terday. declared that there must be prompt
turn about to the Governments attitude to-
ward the railroads or, in his opinion. the
country would see a series of railroad receiv-
ershps similar to that experienced in 1893.
Some railroads can not get money at any
price. one large system having, for instance,
been refused accommodation on short-term
notes at a rate. including the discount as well
as the interest, that was startling revelation
OF It's real condition. unless the CranSporta-
ton lines are permitted to charge profitable
rates they must go into bankruptcy. With
New York Central selling below par, Pennsyl-
vania down to 107, what chance the authority
in question asked, had weaker roads to put
out new share capital or any securities at all
that were not fixed obligations?'
The railroads are in position similar to the
tramp who when chased from the home of a
farmer, followed by the latter with a pitchfork
was forced to cross stream in order to escape.
In attempting to cross on log, the tramp was
suddenly confronted by savage bull dog on the
opposite side of the stream. With the farmer
and his pitchfork on one side of the stream and
the bulldog on the otner, and being unable to
swim. the tramp's doom was sealed So it is with
the railroads. With their tax assessments being
increased from time to time. increasing cost of
equipment. constantly increasing wages con-
stantly decreasing revenues due to reduced pas
senger and freight charges, the finish of the rail
roads is but matter of time. Under pressure
of public Sentiment" the courts are declaring
valid confscatory laws passed by partisan
90 tee.ffe sasls + .~,a SIS ta