The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1913-05-15


ings hurt by being insulted, ignored, or
neglected, or in which the injuries are
not visible, but have occurred to the
nerves, or in such way that they can
not be seen. The excessive sums paid
in damage suits are spent in immod-
crate compensation to small hand
full of people at the cost of the rest.
The people of Mississippi ought to be
told that the damage suit business is
now flourishing like a green bay tree
in their midst and that the fruits of
evil enterprise are now being gathered
literally at their expense.
| 1t is only a question of time before
the principles of law applied to rail-
road companies and the heavy verdicts
given against them will reach other
corporations as WELL so that all forms
of organized capital engaged in bust
same way. Indeed, the time will in
evitably come when private persons
engaged in business will taste of the
same severity. Every form of capital
has reason to fear the treatment
which is now being melted out to rail
road companies. 1t has been said that
there is only one thing more timid
than a million dollars and that is two
million dollars. Capital instantly feels
these checks to investment and flows
away to other communities where
more friendly treatment is given. 1t
/ is fact that III the railroad business
all large improvements have to be
made with borrowed money, as the
margin of profit has grown too small
to permit them to be paid for out OF
the earnings. The possibility Of the
construction of new lines in Missis-
,s.ppI would depend upon the power of
the railroad company to borrow money
for this purpose, and the eye of the
proposed lender would be turned at
once to the balance sheet to ascertain
what profits the company would be
able to earn upon the investment To
build new lines of railroad under
present conditions would be nothing
short of folly.
Public Foots The Bills.
The point of view | would like to
make plain in connection with the
damage suit business is that the public
foots the bills. Let me illustrate this.
In standard railroads the rate of divi-
dend received by the stockholders is
practically a fixed sum from year to
year. The directors dare not reduce
the rate except from stern necessity
for fear of swarm of angry stock
holders about their ears, and also be-
cause it will make it harder to borrow
money for improvements. They dare
not increase the rates for the margin
of profit has become so small that
every cent is needed for the business.
The ever increasing cost of supplies
must be met, The ever rising tide of
|
ever swelling taxes must be paid. The
pressure of growing business requires
Eevery dollar which can be found to in
crease the facilities. Damage suits
are operating expenses. They have to
be met whatever happens. How are
they to pc met? They must be met
by increasing the freight rates. Pas
senger rates like direct taxes cannot
be increased without raising a ire
mendous cutlery on the part of the
whole public. So the final result is
= that the shipper of freight has to pay
= more for transportation. The mer
chant adds the higher freight charges
to the selling price of his goods, and
. the purchaser foots the bill. A new
factor has been added to the high cost
of living, and the public pays. There
is also to be remembered the cost Of
: litigation saddled on the unfortunate