The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-10-24
THE RAILRoaD SITUATION.


Notwithstanding that the fiscal year
| just passed has been a record-break-
| ing one in the history of the Santa Fe
| as far as gross earnings are concerned
| and that the Santa Fe is one of the
most prosperous railway companies in
| the whole country, President Ripley,
its genius, announces that the policy
of his road will be one of retrench-
ment during the immediate future
Expenditures will be cut down in
every possible direction. No new
lines will be built, nor will any ex-
tensive improvements be undertaken,
badly though some of them may be
needed. One reason for this is that
nowadays railroads can borrow money
only at almost prohibitive rates. And
the other, and more important one, is
that the cost of living for the railways
has been increasing steadily of late
years and gives every indication of
going higher. Employees are insistent
with their demands for more pay,
dealers in railway materials are boost
ing their prices all the time, while the
railroad revenues are on the same
basis of rates that have prevailed for
many years or are being reduced from
time to time by legislative enactments
or the DEGREES of state railroad COM
missions and the interstate commerce
commission. Under these circum-
stances, even such a prosperous rail-
road as the Santa Fe is forced to re-
trench. 1t can't provide for better
ments and extensions out of it's earn
ings because these are needed to as
sure the stockholders reasonable divi-
dends and pay interest charges on in
debtedness already in existence.
80
exclusive with the Santa Fe by any
means. 1t is common to all of the
railroads of the country, and many of
them are having particularly hard
rows to hoe even to make both ends
come near meeting.
This is a condition of affairs that
challenges the serious attention and
consideration of the people of the
country, and their lawmaking repre-
sentatives. A reasonable control of
the operations of the railroads by the
government and the several states is
essential This is freely admitted by |
the railroad officials themselves. But
it is difficult to figure out how the |
railroads are going to discharge their |
full obligations to the public, how they |
are going to keep up their present SER |
vice and improve it, if this govern |
mental control goes so far as to deny |
the railroads sufficient revenue to do |
something more than pay their cur
rent expenses, which are increasing |
all the time, and also the dividends |
that thier stockholders have a right to
demand.
In the final analysis it is the public |
that pays all of the freight bills as
we'll as the fares for passenger traffic /
1t is their money that provides the |
railroads with revenue, even if they |
don't hand it directly to the railroads |
In the payment of the big bulk of the +
freight bills. 1t is the same general |
public that is served by the railroads, T
and which has the right to expect the I
best possible service. But how this
service is going to be maintained and /
extended if the public is not going to
be permitted to pay the necessary
price for it, is problem that the poll I
ticians will sooner or later discover
that they cannot solve.
Many, many sections of this country
are being seriously retarded in their de-
because of inadequate rail-
road facilities, or none at all. There
is a bigger need for the extension of
railroad lines in these United States
now than there has been in a quarter
roads, that would be glad to make
these extensions, that would be glad
to improve their service in a variety
of directions, are being held to the
bone as to their revenues by govern
mental authority. 1t is likely to con-
tinue until there is tremendous
crash in the railroad world that will
hit the people harder than all the
tariff changes that could possibly be
made in a wrong direction, or even the
continuance of a dilapidated currency
and banking system that might be un-
able to meet the stress of a financial
panic. Then there will be awaken
ing. And the politicians who now
think they are currying public favor
by grinding the railroads under the
heel of unreasonable regulation, will
discover just how unpopular such an
attitude has become with the public,
and they will be looking for less lucra-
tive jobs.