The citizen., 1913-12-05
MIR. FITZGERALD PUTS 1T
VERY PLAINLY.

Cannot Legislate Capital Out of
Mans Pocket President of
the Western MARYLAND Declares
That Railroads Cannot Expand
Further Until They Can Demon
strate an Earning Power to En-
able Them to Offer Investor an
Absolute, Safe Security.
President Fitzgerald, of the Western
Maryland Railroad. in an address before
the Traffic Club. of Toledo, Ohio, few
days ago, made a plea for increased
rates. He said
THE Western MARYLAND Railway
through its connection with the Pittsburg
and Lake Erie Railroad at Connellsville,
Pa, has provided you with another trunk
line railway to the Atlantic Seaboard.
Much has been said about the high cost
of living, and the award in the recent
wage controversy finds that during the
past three years the cost OF living OF the
conductors and tranmen has increased
at least seven per cent.
AS the railways are the great pur-
chasers OF labor and material, venture
to approach the subject of the high cost
OF living OF the railways with a hope that
some phases OF the situation may sug-
gest the cooperative action on the part
OF those who control the selling price OF
the only railway product-transporta
Our railways employ more than IT,
900, 900 persons, with an annual pay roll
OF 81, SOC, ooo. 900; that a fair valuation OF
OF our railway plant, equipment and
property is probably SIS, ,ooo ooo. 900;
that they represent large portions of
the reserve funds of savings and insur-
ance institutions; therefore administering
the savings of millions of men, women
and children.
Life insurance companies in New
York are said to hold one.eighth of the
railroad bond issues of this country.
That the railways NAV be able to
| offer you an efficient transportation service
immense amounts of money must be ex.
| pended in their construction, in the pro-
vision of cars, locomotives, terminals and
| all other necessary facilities. This means
capital investment.
That they may properly conduct this
service of transportation, vast amounts
of money must be expended for fuel, for
supplies and material and for the wages
OF their armies Of employees.
THE interests of the railways, their Sc.
curty-holders, their employees, the ship
pers, the passengers and the public are
identical. By no process OF reasoning
can you separate them. Therefore, we
should all be concerned regarding the
conditions now confronting the railways,
and which difficulties may be met in one
o three ways:
"First-By reduction in wages, which
, cannot be considered at this time.
Secondly reduction in other items
of expense. which would of necessity i'm.
pair the present transportation service,
and which would, of course, not be toll
Grated by the public.
"Thlid-by increased rates.
Railways cannot continue to provide
necessary and efficient transportation ia
| cilities on the present rates of compensa-
| tion allowed TOR the service of transpor.
! tation. and which rates are no longer sui.
ficient to carry the high cost of operating
That part of his income which man
saves is his capital; therefore, everv man
is capitalist, and he lends his money to
those who can offer attractive rates o
interest and assure him of the safety oI
| his investment.
You NAV control railroad rates. you
may control railway capital expenditures,
you may regulate the wages that are paid
to railway employees, but you cannot leg
islate private capital out Of a mans pock
ct, so that further expansion and develop
| ment OF our great transportation system
can be deferred until the railways car
again demonstrate an earning power en-
abling them to offer the investor secur
ity, the safety of which as TO princlpa
will be assured. and the rates of interest
on which will at least be as attractive as
others seeking money in the same mar
kets.
There is higher authority than the
law, and that Is the people who make the
law and at whose behest the law can be
changed. have an abiding faith IN the
people of this country and in their de
sire to do the fair thing and the right
thing.
I'VE will enjov an ideal relationship
with the people when they cease refer
ring to the railways as the Hartman
Lines" the Vanderbilt Lines the
"Hill Lines" or the Rockefeller Lines, y
and refer to them as 'our railroads.
There is a great difference between
government ownership and public own
ership. believe in public ownership
and believe in public regulation-a reg
ulaton which will protect the people
from improper discrimination and insul {
them efficient and proper service"