The Washington herald., 1914-06-09
U. 5. ownership
INEVITABLE.

the benefits Of the Morgan financial
banking.
"What Melien did. virtually every rail-
way president in the country has to DO
or go broke. For no railroad In the
United States today can pay expenses
and be independent without outside hnan-
eial assistance. That's why the old order
of railroad men are praying for the ma
tionalization of the roads.
1T is my greatest hope-and know
there is not a man of my acquaintance
in the railroad world who does not share
my view-that the administration VIII
act promptly. The longer the roads are
compelled to continue under private own
ership the greater must become the dit-
ference between income and outgo with
the eventual result that our securities
will be down to the point which VIII
spell ruin to the hundreds Of thousands
of shareholders"
IT have addressed the President on the
subject, but have had no favorably reply
vet. / know he favors granting the
five per cent. increase IN rates asked by
the railroads. but he is powerless 10 In
ffuence the Interstate Commerce Commits
sion, which has the decision in hand.
81 have pointed out to him. however.
that granting the increase will not solve
the difficulty. And I have pointed out
TURNER In1t lht present toui - eiiS
administration is absolutely dishonest
and is setting bad example for the
coming generation. for by his policy of
inaction in the face of vital matters al
fecting the whole Industry of the United
States, the values of railway securities
are steadily declining. To continue this
policy until these great properties have
shrunk to half or a third of their real
value and then step in and buy them
is no less dastardly than the methods Of
| frenzied financiers in their palmiest days.
| MY knowledge of the feeling inspiring
virtually every railroad director in the
\ country today enables me to say that
| not one would hesitate for an instant to
/ turn oyer their properties TO the govern
ment for the present market valuation
ard thank God they are out Of hopeless
mess.
Rates Were Reduced.
-.since 1905, when the Interstate Com
| nerce Commission came into being. rates
| have been constantly reduced. while tht
cost of labor has constantly risen- We
| have como to the breaking point now
| a md Naturalization is the only solution
I'VE have produced proof for the Presi-
dent that shippers right now are send
| ing tons of ore by parcel post. They are
doing UP all kinds of raw products In
| nItN-pOUnu SdChS sthdihs AAAN'h -
| fast passenger and mail trains, and the
railroads don't receive a penny for haul
| ing them And this is not the only in
| stance of what the governments inno'
vations are doing to the railroads.
| The public should know now that the
| time is close at hand. perhaps this year
when crops will rot in the fields because
/ the railroads have not adequate equip
ment and no money to purchase II tc
| t. inc 1ayx
| equipment-nobody can.
''E P. Ripley, president Of the Atchi
son, Topeka and Santa Fe. has nevel
been regarded as pessimist, but even n
is discouraged and ready to quit-and tn
President knows it.
| so far as crooked dealing in railwa,
| securities by financiers. or so far a
decentralization are concerned. neithe
has anything TO do with rates. The las
man in the world I would go to for in
formation about railroad finances in thi
sense would be a traffic manager. Rate
are fixed by him without a thought o
their effect on the company's dividends
He bases his rates absolutely and solel
on the consideration of how much tn
shipper can afford to pay. II rates ar
not attractive. the manufacturer will 10
cate his plant nearer the market
Business generally is at a halt tn
sentiment of the public is absolutel
antagonistic to accepting Villa instea
of Huerta We have had a year and
.ialf of the Presidents idealism, and thu
far the net result is the occupation q
Vera Cruz. Nobody has ever had tn
faintest hope that the A. B. c. media
tors could accomplish anything towar
a settlement of the Mexican mess.
This inconsequential dilly-dallying a
a time when every consideration demand
action of the most aggressive sort.
quite sufficient reason for demoralize
condition in which the business OF III
United States finds itself.
THE same inaction marks the conduc
of the Interstate Commerce Commission
who have had all the facts in the rate
increases in their possessions for months
No date has been set for their decision
and nobody expects one for a year or two
Tariff revision has not accomplishe
any of the benefits the administratio
terials have decreased tremendously
while the importation of manufacture
articles have increased proportionatel!
Expectations have fallen to an alarmin
extent and foreign investment In Amer
can securities have also diminished to a
extent that makes the balance of trad
sadly against us.
Il have written long letter to Co
Roosevelt today and await his arrival
London expectantly. 1t is possible b
will declare himself while he Is her
but in any event on his return to III
United States, he will wake up the cour
try in a fashion that will have tr'