The Press., 1913-10-01

of the great public service corporations and that changing conditions do not make necessary changes in method and in law But l do say that care should be taken not to have that supervision and regula- tion go so far that it practically takes the real power of management away from those who have investe, their money in the business. So long they have their money invested, so long as they are re- sponsble for the financial results, so long as they give adequate, reasonable and safe service at rates that will permit of gross earnings sufficient to pay expenses taxes, interest on debts, take care of depreciation and obsolescence and pay a reasonable return to tie owners. they must have the right to decide many inn portant questions, particularly those re- lating to the details of service, the or ganization of the staff and the rules and regulations under which the staff and employees must work to produce the greatest efficiency and safety
 Regulation and Ownership.
 During the last five years have tried throughout the west to present the railroad side of the transportation question. But also had in mind much broader question namely that the country cannot attain Its best growth unless the people can he made to see that adequate and safe transportation Is absolutely necessary and that 1t cannot be obtained throueh
 
 management enough money is earned to pay approximately the same return to the investor as is received by investors in other classes of business in the same territory, and in addition lay up a fund to provide for bad times-when earnings are DOOr.
 The policy of the government-nationaI and state-during the last twenty-five years seems to have been to decide rate questions in the great majority of cases In such a way that rates were rarely ad- vanced and generally were reduced, and to introduce rules, regulations and meth ods that increased expenses. I do, how ever, want to make plea that coupled with restraint and control, there should be protection to the owners of the se- curities. The commissions - both state and national-naturally feel the great pressure of the millions of users of the railroads for reduced rates and increased facilities. But if the rates continue to decline. or even. remain on the present level and if expenses are increased by higher wages and cost of materials. and by the introduction of different appliances and facilities more rapidly than the roads can obtain money then there Is but one result for some of the railroads of the United States-and that is bankruptcy. l believe the commissiOners-who have such great pOWers-realiZe their responsibility to the owners of the properties as well as to the users, and hope earnestly that they will give practical evidence of their realization by permitting some advances in rates.
 Should the commissions-federal and state-make a positive declaration that rates may be advanced so as to permit the properties to meet all of their obliga- tions, pay a fair return to stockholders and leave balance for improvements, they will do much for the entire country DartfCulaFlV for Such a declaration will at once inspire conf1- dence and give to existing securities better standing than they now have both here and in Europe and will help to mar ket new securities upon an interest basis more favorable than Is now possible, be- cause of the uneasiness in the minds of investors about the future net earnings of the railroads
 Magnitude of Transportation Machine.
 Let us look for a minute at few facts about the great transportation machine made up of the New Haven and New Eng land lines and associated properties. There are 1876 miles of railroad and IA, 175 miles of track. Of the track g per cent is in 20 per cent in Connecticut, 14 per cent in Maine, 13 per cent in New York, IF per cent in New Hampshire. 6 per cent in Rhode Island per cent in Vermont and per cent elsewhere. There are 3,197 locomotives. 8,O88 passenger train cars, 79,522 freight train cars and S,541 work cars. Then there is the marine equipment of 24O steamers, tugs. barges. etc. But this rolling stock is not stand ing still. Each year the locomotives run. about 80,O0)O 600 miles, the passenger train cars move 20, 900 miles, and the freight cars move 624OOO.OOO miles. The total mileage of these units of equipment Is 2,500, 900 miles per day, or more than 100000 miles every hour. ...>
 Revenues, PayroIIs and Taxes.
 The operating revenues of all the prop critics were for the last fiscal year in round numbers $155, ,OOOO 900. The operating expenses. were $112OOO.OOO. Of operating expenses approximately $66, 00,O00 or 59 per cent was paid in wages, an average payment to each employee of about $7O0 year. The Hemaining fl per cent or $46,- OO0, 900 was paid for fuel, supplies, etc., but a large part of 1t goes indirectly to labor engaged in the production of the materi- als purchased. This large payroll Is an important factor to the communities serV- ed by the properties, as much of the money finds its way each month to mer- chants and others. The total taxes paid by these properties was $7640,O00 a very contribution to the funds for carrying on the government.
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