El Paso herald. (El Paso, Tex.) 1901-1931, 1913-12-23
Clash Over Railroad Legislation

of FL Paso as a place of permanent
residence and a stopping point Tor
tourists. Urging a broad spirit of as
sisJance on the part Of all citizens IN
behalf Of the mesa boulevard, he lad
special stress on the fact that the pro-
posed Improvement would be for all
the people for all time, the poorest as
well as the owners of motor cars and
fine horses. He emphasized the danger
in delay, saying that 81 Paso could not
afford to lose permanent control of the
mesa's rim.
Railroads and the People.
Mr.. Clancy said, in part;
There are four classes of investors
IN a railrOad-the employee, the general
public, the stockholder and the bond
hOlder-and in the order in which
have named them are they directly
concerned in its successful operation
and welfare. On it the employee de-
ponds for a market for his Hfe's labor
and the public depends for conve1iences
dominantly elemental in social, indus
trial and commercial progress. The
dividend of the employee is continuous
employment at good wages, the diVl-
dend Of the public is convenience in
travel and commercial intercourse as
well as greatly enhanced values OF all
real property, while the dividends OF
the railway security holders are 20 per-
cent less than If their capital was in
vested in ordinary farm mortgages
Desires vs.. Willingness to Pay.
1.-The public should balance its de-
sire to have with its willingness to
pay. Today you have all the benefits
of ownership without any of the re-
spOnsibilities. When you exercise the
right of corporate supervision to such
extent you are obligated to safeguard
the properties involved against abuses,
being Just as much your duty to see that
stockholders are adequately cOmpen-
stated as that the public is adequately
served.
1.-THE cry of 'watered stock so often
made in answer to the railroads appeal
for fair treatment. is both inane and
ludicrOus when cOntrasted with the fact
that American railroads are among the
lowest capitalized roads in the world
and. in the judgment Of accepted au-
thority on railway economics, the to-
tai value of the properties is probably
in excess of the aggregate amount Of
stock and bond obligations issued and
outstanding.
High Cost Of Living.
Under one pretense or another rail-
road rates have been reduced with the
public demanding at the same time
more and better service, more taxes,
higher prices for material and INCEST
Ors a higher rate of interest. One of
the most subtle and at once one Of the
most seductive excuses for rate reduc-
lions is the high cost of living. Stand
ing out in bold and bald contrast is the
fact that while rate reductions have
been ostensibly sought and made for
the benefit of the consumer, retail prices
are the same, or higher
The Railroads. Burden.
RAILROAD rates in the United States
are lower now than ever before, but
the cost of living is higher; railroad
rates in the United States are the low
est of any country in the world, but the
cost of living is the highest; rate re-
auctions in the last 10 years aggregate
many millions, but the cost of living
has increased approximately q per-
cent It is important that you should
know and consider that on an average
AZ cents of every dollar of gross reve-
nue. go to labor and that, therefore,
labor from decreased employment, must