The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-30

petitive market than the W0rId nas eV0l
J known.
II Is conceded that the railroads must
make money enough for all necessary
purposes. It has been demonstrated
, and only the fatuous deny II, that they
are not making enough money. Why
should there be hesitation IN the cir.
cumstances? No consideration Of past
mistakes and abuses By the railroads
and no effort to redress them will make
any difference In the consequences OF
starving them now. The country Is
not confronted by a matter Of history
but BY a present fact. and 10 far as
history goes 1t can be dismissed from
the reckoning anyway.
How little the public has to fear from
a repetition of the evils Of the past Is
strikingly and even alarmingly illps-
truted by the state Of terrorism which
exists in railroad circles. Railroad ex.
ecutives will not say publicly what they
say privately about the desperate pros
pect which looms before the transpor.
tation system II the courses Of politics
are not speedily changed. This Is one
Of the special features Of menace In the
present situation. 1t Is akin to the
menace which offered q year ago when
fear spread through the whole banking
community on account Of the denia.
gogic uproar politically excited against
bankers. Railroad officers Of the new
order have done their best 10 establish
friendly relation with the people, but
experience with all political contact
has taught them that every measure Of
railroad management is likely to he
misrcpresented. The Eastern railroads
have been wildly accused Of padding
their expense accounts in order to
strengthen their case. and nothing which
the railroads do seems to save them
from the unreasoning suspicious Of 20.
litical campaigners who have been liv-
ins for years of the capitalization Of
hostility to the railroads, for which
there IL no longer shadow Of excuse.
Argument Is made that the railroad
conditions denoted ny heavy declines
In earnings. reduced and passed divi-
dends, defaulted interest, diminished
employment for labor. curtailed train
service and the like are largely the re-
suit Of general business impairment.
This Is true; but how much Of the
depression Of general business has been
caused by compelling the railroads to
engage In a struggle for their very ex
istence?
There are 100000 employees on
American railroad payrolls. who with
their families represent about n. per
cent. Of the country's population. The
buying and consuming power which the
railroads create by their disbursements
throughout the land Is enormous. III.
rect purchases OF materials by the rail.
roads themselves make a vast contribu.
tion to the country's total volume Of
business. Nor Is railroading a million
aire enterprise.
On the contrary, millionaire interest
therein has been steadily dwindling
judging from the steady frightening Of
stockholders lists and the steady low
ering OF the average Of shares held.
conclusive proof that large holdings
have been In process of liquidation. In
the Pennsylvania Railroad system alone
there are 100000 stockholders. Never
have the railroads been 40 popularity
owned as now. The reserves Of life in
surance companies and the funds Of
savings banks are heavily invested In
them, and thereby millions OF individ.
uals are directly concerned with the
welfare Of the railroads without realiz.
ing 1t, because they own no railroad Sc
curities themselves.
And what Is the railroad system
which has been brought to its present
evil pass? 1t pays the highest wages
In the world and pays more taxes In
proportion to invested capital than the
railroads OF any other land. II not
only does more work on its capital but
:, does this work upon less capital than
any other railroad system. One OF the
favOrite charges Of politicians against
the railroads is that they are inefficient
How have they manifested this ineffi.
ciency7
They have increased enormously their
train schedules, enlarged terminals and
built commodious stations. They have
increased the hauling power OF locomo.
tives and the carrying capacity Of cars.
They have steadily increased trainloais
and have rclaid tracks with ever hcav.
Ter rails. They have steadily reduced
grades. Strengthened lines and built
stronger bridges. II Is n question "
there II any industry in any land which
has given such an exhibition Of progress.
sive efficiency ms the American railroad
system. The wonder Is that with all
their improvement in methods and ser.
vice at 4 steadily decrea sing cost to the
public and n steadily diminishing re-
turn to themselves the railroads have
not already gone into bankruptcy In
stead Of being at the verge Of It.
A great question has been asked In
the Eastern rate case. II n wrong an.
swer IL given the signs Of hard times In