The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-12-24

II
are passing through period II ThSca
ing financial resources of eTe<T nation
u the Eorsd xiii be tested As never
before.
Rail ROADS LOST MILLIONS
The Res operating income Of sas
railroads OF the United States for the
rear eE6inz JEne -. 1914. sas slis--
So SIS less than for TIE previous
rear The gross earnings for 1ns
scar we're ss5-ssz.sSs less than Tor
lsI5-vhile expenses and taxes were
SIS. 5s5.s5s more. But heavy IS this
harden VAS before. the great struggle
acrpss the seas, earring = its wake
the destruction OF untold hundreds o.
millions OF dollars worth Of ali kinds
Of properly, renders the situation q
Thousand sozd more serious. X means,
N short, thai for number Of years
In come Durope viii have no surplus
nonsy for investment IN the United
states or elsewhere and that Amer
lean railroads will have to finance
their future needs at home. How
hsrcuIean this task viii be. saying
nothing aboat protesting themselves
against tie dumping o. foreign secHr-
Ifies, may be- iucged from the TACT
that the bond ead note obligations
which viii mature between now and
the end OF next year. and which the
railroads viii hare 70 meet IN some
way. amount 10 ao-e than s5s3. CO.,
rzr Toll
worth OF new Improvements Or bet
sermeatS into consideration These
are obligations which were incurred
in the past and xhfch must be met
as they fall due If the transportation
ompanses are TO be preserved from
wholesale raceiyersfips and ruin.
ManfSest1y, therefore. American In
vsstors. big and little. will have to
come to the Tescue-and before they
viii consent TO do this American rail
road securities will have 70 be re-
established as sound, respected and
gazing investment-and this. on the
basis Of present railroad earnings. IS
impossible,
For this reason the railroads OF
Iowa believe the Impending crisis
demands that they lar this whole
problem before the people Of the en-
tire state-tfat they have bear:-to-
heart talk with the farmer. the mer-
chant. the manufacturer, the banker.
the Izborinz man, anc all other cfti-
zens upon this great question which
so vitality affects the future welfare OF
~
WHY RAILROADS ARE HELPLESS.
IN times o. acute financial stress
pirate industries are in position To
very largely adjust their affairs to
meet the emergency. They can adj
vance the price OF their commodities,
cut their payroll in half, or shut down
altogether. and thus permit the storm
TO blow over without actual ship
wreck The railroads. as luasi-pub!ic
enterprises. however. are IN an en-
tireiy different position. Their rates
are regulated By Law and cannot be
advanced without the consent OF the
people through their law making
bodies. In order 20 please the con-
yentence of the public and not to
break down the commerce Of the COM
try they must operate their freight
and passenger trains whether they
carry full load or only a quarter Of
a Ioad-anG in view OF these facts IT
il manifestiy unfair to put the rail
roads in 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 regu-
lation Of railroad rates they at the
same time assumed the solemn I'M
piled obligation 20 see that the rail
roads get 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
raflroads cannot get along without
TIRE patronage and, what Is equally
essential. the good WIFI OF the people.
That some OF those who have been
entrusted with railroad management
IN the past are bDiDeWudt Io5pOhbbDHS
for the apparent gull between the
publ, and the transportation com
paries Is perhaps true. Busy and
,iarassed by the hercnlean tasks en-
trusted. to their care, there has been
too little contact between them and
the people. Again, IT is undoubtedly
true that the world of railroad finance
AZ we'll as other lines OF Industrial
activity has had its share OF mex
cusabIe abuses but Just as the pub
lie does not hold the banking world
or the ministry responsible as whole
for the shortcomings cs an occasional
black sheep. 40 the hundreds Of hon
eft railroad officials throughout the
country should not be condemned be-
eaug.. OF the misGeeds Of the few.
WHO OWNS THE RAiLRoADS7
In this connection IL may be said