The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-11-29

try relative to the treatment that
should b accorded the railways by
the federal and state commissions
which have regulatory powers over
them II apparent on all sides. Even
those who were loudest not 90 long
ago in their shouts that the railroads
were the real robber barons Of the
land have begun to awaken to the fact
that = most serious situation IL con-
fronting the country because Of the
inability OF the railroads to enlist new
capital to improve their service and
extend their facilities. This il due to
the fact that the returns now coming
to the railroads are not sufficient to
meet the ever-increasing cost Of their
operation and at the same time ac-
quire net earnings that will assure
stockholders q reasonable return on
their investment. This makes capital
timid about entering or continuing in
the railroad field. The Chicago Trib-
une. for instance. that was in the
front rank OF the anti-railroad cru
saders. now admits that there can be
such thing a. over-regulati0n Of the
railroads And it recently made an
unusually strong plea that the time
had come for treating the railroads
with Justice. What the Tribune had
to say follows:
1.-The opening statement for the rail-
roads in their application for freight
rate advance cannot but make
strong impression upon public opin-
ion. It unquestionably fs worthy of
unprejudiced and thorough considera-
ton not merely by the commission
but by the press and the public. in
order that the decision reached finally
by that tribunal may be understood
and accepted If it should approve
higher rates.
There is little doubt that the issue
now raised before the commission is
one Of exceptional gravity. If condi-
lions are what these railroad mana
gers declare them to be, denial of
relief by the commission will precipi-
tate so serious q crisis as to involve
not merely. the railroads but CONNER
cial and financial prosperity of the
nation.
'But even II this be an unduly dark
view Of the situation. the issue re-
mains serious enough. The figures
present a condition which makes rail-
road growth impossible, and the arrest
Of railroad development means moth
ing less disastrous than the arrest of
national development. AS it is, the
business Of the country is growing and
requires steadily increasing traffic
facilities. These must be paid for, and
the capital will not be forthcoming
unless it Is assured its return. There
is not little truth in the complaint
of railroad managers that since the
adoption Of regulation the whole ten
dency has been to exact from the rail-
these exactions were from the stand
point Of the traveller, the shipper. and
the employee, they involved consider
able expenditures.
"'The railway system Of the United
States as one Of the most progressive
Of the railroad men points out, which
constitutes ir the aggregate over 40
per cent Of the entire railway mileage
Of the world. has been built up al
most wholly with private capital, and
these who have invested in railway
securities have been encouraged to do
SO by the belief that money SO invest
ed would bring fair and reasonable
returns at least, and they have been
assured again and again, by commits
sions us well as by the highest court,
that they were entitled to returns Of
that character. It has finally come
about, however, that money invested
in railway properties does not yield
the same measure Of return as is to be
gained from money invested in other
undertakings, and Of course there can
be only one outcome from such a state
Of affairs-that is to say, we cannot
continue to look to private capital and
private enterprise for the further
necessary development OF our trans
portation system unless the returns to
be gained in that direction are suffi-
GENTLY inviting to make the necessary
capital Forthcoming. Private capital
cannot be forced to invest in railways
1.-The alternative is public owner
ship. and the American people are not
30 impressed with their political eff
cheney and purity as to be ready to
enter upon such a project. We have
| just set up the system Of regulation.
and it is our business to perfect that
system. But the essence of such q
system is Justice to ALTO the public
the shipper, the employee, the inves-
tor. In the largest sense the interests
| of all these converge upon the eff
ciency Of the railroad. Efficiency de-
ponds upon ample facilities; facilities
depend upon ample capital; capital
supply depends upon fair returns.
LAS the Tribune recently has said.
what is needed is a constructive policy.
fair to the consumer, who pays the
freight to the shipper, whose. pros
pcrity depends upon efficient service
and no favoritism; to the bona fide
investor. and to his partner in the en-
| terprise, the employee.
1.-THE fight for railroad regulation.
in which the Tribune is glad to have
had q part, has been won. But. being
won, 1t will be lost II regulation Is