The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1914-10-09
WHAT RAILROADS DO
WITH THEIR INCOME
The Largest Employers of Labor,
Buyers of Steel, Coal, Taxpayers
in the Country.

In the beginning of the present ar
ticle on the railroad situation it is
pertinent to remind the reader that
the transportation companies and the
public face each other under radical
ly changed conditions today from
those which prevailed few years
ago. On the one hand, the Inter-
State Commerce Commission and the
different states, either through their
Public Service Commissions or Leg
islatures say what rates the rail-
roads shall charge for service. On
the other hand, the proposal made in
the present Congress that the Inter-
State Commerce Commission be en-
powered to pass upon all new rail-
road securities before they can be
placed upon the market and like pow
ers having already been conferred
within the states upon the different
Public Service Commissions, means
that the last vestige Of control over
their finances will have been taken
away from the railroads, and that
hcnceforth their fate lies absolutely
in the hollow of the peoples hands.
Furthermore, it must be said for
the stockholders and the managers
Of the roads that they have no pro-
test to offer against this stringent
governmental regulation. The only
plea they make is that the value of
their securities be not destroyed and
they be permitted to receive living
rates so they may continue to render
efficient and adequate service to the
people. The proposal to submit all
new securities to official investigation
before they are placed upon the mar
ket, if fairly interpreted and exer-
cised, will have the approval of nine
out Of ten railroad officials through
out the country. In view of these
changed conditions therefore and the
fact that the people have taken over
the entire control and regulation of
the railroads, why should they not be
as fair 70 the~ they are to all
other great National industries.
That they will be. once they come to
understand the true situation, is the
confident belief of those entrusted
with the responsibility Of railroad
management and those who have nut
their money into these huge proper
ties. The attempt upon the part of
certain political opportunsts to ere
ate the impression in the public
mind that the railroads represent
some great sinister influence in the
nation is utterly absurd, With sew
eral million investors, large and
small, owning the transportation COM
panies, with nearly two million en-
ployees working for them and with
scores Of millions travelling and ship
ping freight over them. the railroads
| constitute the most Democratic as
well as gigantic institution in the
country today-an industry owned by
the people, operated by the people.
and controlled and regulated by the
people and intensely essential to the
comfort, convenience and prosperity
of our entire population.
In last weeks article the grave cri-
sis which confronts the railroads be-
cause of the European War which has
indefinitely closed the foreign money
markets to them was briefly explain
ed. The fact was also cited that
American railroads are not owned by
n few rich men as many have thought
lessly come to believe-that on the
contrary, 80 per cent of their owner
ship is in the hands of hundreds of
thousands of stockholders, large and
small; furthermore, that all the old
line life insurance companies, hun
dreds of savings and other banks. be-
nevolent institutions, ETC., have many
millions Of their assets invested in
railroad bonds, and that therefore,
millions Of holders Of life insurance
policies and bank depositors are vi
tally concerned in preserving the full
value Of these securities which have
always been regarded as the greatest
and soundest basic investment in the
nation.
Where Railroad Receipts Go
We now wish to BRIEFLY analyze
what the railroads do with the money
which they collect for carrying freight
and passengers in order that the read
er may realize what a tremendous
factor they are in the everyday busi-
ness life and prosperity of the coun-
try. Just as the idea has prevailed
in the minds of many that the rail-
roads are owned by handful of rich
men, so the thought has also found
deep root that they collect millions of
dollars from the public which goes