Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1914-12-27

serve ana sustain Il IN every lebiOludte
way"
Railroads Lost Millions.
The net operating income Of the rail-
roads OF the United states for the year
ending June 80. 1914, was Sl2O.oOOOOO less
than for the previous year. The gross
earnings for the year were $i4OOO,00O less
than for 191S-while expenses and taxes
were $76,o0oO0O more. But heavy as this
burden was before, the great struggle
across the sees, carrying ia its wake the
destruction OF untold hundreds of mill
lions of dollars worth of all kinds Of
property renders the situation a thou
sandfold more serious II means, in
short. thdt for a number of years to
come Europe will have no surplus money
for investment in the United States or
elsewhere and that American railroads
VIII have TO finance their future needs
at home How herculean this task will
be- saying nothing about protecting them
selves against the dumping Of foreign Sc
curities, may be judged from the fact
that the loan and note obligations which
viii mature between now and the end of
the next year. and which the railroads
will have to meet i'm some way amount
to more than S56S. 900 0O0-and this doesn't
take a dollars worth Of new improve
ments or betterments into consideration.
These are obligations which were incurred
In the past and which must be met as
they fall due If the transportation COM
panies are to be preserved from whole
sale receiverships and ruin.
Manifestly. therefore, American in
vestors, big and little will have to come
10 the resCue-and before they will con
sent to do this American railroad securi-
ties will have TO be 're-established as a
sound, respected and paying investment
and this, on the basis Of present railroad
earnings, Is impossiblel
For this reason the railroads of Ne
braska believe the impending crisis de-
mands that they lay this whole problem
before the people Of the entire state-that
they have a heart-to-heart talk with the
farmer, the merchant. the manufacturer.
the banker. the lsboring man, and all
other citizens upon this great question
which so vitality affects the future well
fare Of the commonwealth and the ma
ton.
Why Railroads Are Helpless.
III AAiAiNo VI dNhNt lludlildl SlTtSS pr
vate industries are in position to very
largely adjust their affairs to meet the
emergency. They can advance the price
Of their commodities. cut their payroll in
half, or shut down altogether, and thus
permit the storm to blow over without
actual shipwreck. The railroads, as
quasi-bublic enterprises, however. are in
ar entirely different position. Their
rates are regulated by law and cannot
be advanced without the consent of the
people through their law-making bodies.
IT. order to please the convenience of the
public and not-to~b break down the COM
merce OF the country they must operate
their freight and passenger trains
whether they carry full load or only
a quarter of load-and in view of these
facts 1t is manifestly unfair to put the
railroads I'm the same class with private
industries in the present crisis and ask
them to shift for themselves as best they
can. When the people took over the
complete making and regulation of rail-
road rates they at the same time as
sumed the solemn implied obligation to
see that the railroads get a square deal
for the people are the only power that
stands between them and ruin.
We believe every intelligent citizen
will agree that agriculture, commerce
and industry cannot get along without
the railroads. On the other hand, the
railroads cannot get along without the
patronage and, what is equally essen
tial, the good will of the people. That
some of those who have been entrusted
with railroad management In the past
are somewhat responsible for the APP
parent gulf between the public and the
transportation companies is perhaps
true. Busy and harassed by the her
culean tasks entrusted to their care,