The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-12-05

demands that they lay this whole
problem before the people of the en-
tire state-that they have a heart
to-heart talk with the farmer. the
merchant, the manufacturer, the
banker, the laboring man, and all 9TH
er citizens, upon this great question
which so vitality affects the future
welfare of the commonwealth.
WHY RAILROADS ARE HELPLESS.
In times of acute financial stress,
private industries are in position to
very largely adjust their affairs to meet
the emergency. They can advance the
price of their commodities, cut their
pay roll in half. or shut down altogeth-
er and thus permit the storm to blow
over without actual shipwreck. The
railroads as quasi-public enterprises,
however, are in an entirely 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 to please
the convenience of the public and not
to break down the commerce Of the
country they must operate their freight
and passenger trains whether they car
ry full load or only quarter of a
load-and in view Of these facts, it is
manifestly unfair to put the railroads
in the same class with private indus
tries In the present crisis and ask them
to shift for themselves as best they can.
When the people took over the COM
plete making and regulation of railroad
rates, they at the same time assumed
the solemn implied obligation to see
that the railroads get a square deal
for this is the only power which 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 ap-
parent gulf between the public and the
transportation companies is perhaps
true. Busy and harassed by the Her
culean tasks entrusted to their care,
there has been too little contact be-
tween them and the people. Again, it
is undoubtedly true that the world of
railroad finance as well as other lines
of industrial activity has had it's share
Of inexcuSable abuses-but just as the
public does not hold the banking world
or the ministry responsible as whole
for the shortcomings of an occasional
black sheep. SO the hundreds Of honest
railroad officials throughout the coun-
try should not be condemned because
Of the misdeeds Of the few.
WHO OWNS THE RAILROADS?
In this connection it may be said that
the railroad world is encountered with
lot of phantoms which exist only in
the popular fancy. For instance, be-
cause there have been some half dozen
so-called railroad magnates whose
names have figured prominently in
Wall street, many people have come to
believe that the railroads Of the coun-
try are largely owned by few rich men.
AS a matter Of fact, nothing could be
farther from the truth. Out of the col
ossal sum of twenty billion dollars In
vested in American railroad securities
less than per cent is now, or ever has
been, in the hands of these men who
have figured prominently in the news
paper headlines, while the other So per
cent is in the hands of nearly two mil
lion investors, large and small. who in
many instances have put the modest
savings Of lifetime into these securi-
ties in order that they might lay away
a competency for old age.
When therefore, the value of these
securities is depressed, or perchance
destroyed. the hardship is tenfold great
er upon the thousands of everyday cit
izers-upon the frugal mechanic in
New England factory. the widow with
her life insurance funds, and the count
less other citizens in every avocation
and walk Of life than upon the handful
of millionaires, good or bad, who have
4
Thus, for instance, the great Pennsyi-
vania system has over 10000 stockhold-
ers while the Santa Fe has over 49,
600, and the same ratio holds good II
nearly all +',e other lines
But that isn't all. For many years
railroad bonds were considered the SAT-
est and soundest investment in the
country, and hence hundreds OF mil
lions of the assets of our great life in
surance companies. banks, benevolent
associations and colleges were invested
in them. and the moment, therefore
that the soundness Of these securitie.
| is affected the financial solidity OF thest
myriad institutions is greatly menacet
at the same time.
| Carrying it step further. 1t means
that every holder Of an old line life in
surance policy and millions of deposi
| tors in savings and other banks. ant
those interested in many fiduciary
benevolent and educational institution
are directly concerned in the presen
situation. which threatens to Target.
destroy the former high regard II
which an investment in railroad bond
was held.
in the impending crisis, therefore. no
merely the fate of our transportation
| system is at stake. but along with
the very financial integrity of our en-
tire investment world-and this onl
goes to show how vast and overshao
owing our railroad industry has becom
i-how thew are not merely the gian
Il arteries Of agriculture and commerce
but how closely their welfare is wove
into the wool and fabric Of the entir
ration Among other things. it shout
remind us how interdependent we hav
come to he in this mighty republic Q
ours-that each is in truth becomin
more and more his brothers keeper
and that we need to think and &C
carefully lest in our mistaken zeal W
destroy those who. like ourselves. nee
J whatever of this worlds goods the to
and sweat OF years has brought t
them.
During the next few weeks we prom
, Use the reader the most intimate an
far-reachjng discussion of the railroa
, question that has ever appeared in tn
public press. and we trust that