The Washington herald., 1915-02-11
" "StrangIing LdwS" a Peril
To America, Says Elliott
Nation May Fail to Profit by Coming Business Revival Un
less Legislators Relent and Repair Damage
Already Done, Fears Railway Head

has 1.S4s.s33 employees to whom it pays
81. $50. .025, ,2S6 in wages. Forty-four cents
| OF every dollar spent by the railroads is
paid to labor. A total Of 9.24.OlJ persons
are dependent upon 1t for a living II
families of employees be counted. One
million workers in plants furnishing raII-
road material and supplies: 100000
counting their families. There are I.5OO.-
O0O holders OF stocks and bonds, owners
OF this industry. representing at least
100000 persons in the United States
whom it thus helps to support. Railway
bonds constitute - per cent OF all bonds
held by savings banks. and 2O.O0OO OOO per-
sons, over one-fifth Of the population. are
directly or indirectly Interested in the
! financial results of this industry.
Railroads and Savings.
! THE Comptroller of the Currency says.
in his annual report. that there are H.
Occ.0OO depositors in savings banks with
! 8. 10000 to their credit. Much of this
! large sum is invested by the banks in
| railroad securities. so that those II. 600 OOl
people have very vital interest in hav-
! ing the railroad industry sound and
| profitable.
THE conservation of this industry is
vital to this country. and owners and
managers should be helped rather than
! hindered in their earnest efforts to make
| IL more useful and efficient.
! The people should remember that in
| exercising their great power through
| their government TO punish the railroads
for errors and failures they may go too
/ far and hurt those who were not respon-
sblP in any way for these errors and
cripple the Very institution that should
he well equipped to serve all the people.
1t should not be forgotten that railroad
property. after all. is still private proper
ty. and no power can justly require the
use Of the property without a reason
able reward.
The Supreme Court has settled this
principle, and every one Interested should
| consider the words of Chief Justice
| Waite: This power to regulate rates is
| not power to destroy, and Limitation is
: not equivalent to COnfScatiOn under pre-
tense of regulating fares and rates. The
state cannot require railroad corpora
tion to carry persons or property with
out reward. Neither can ii DO that which
in law amounts to taking Of private
| property. either to be used without just
compensation or without due process OF
! law
Under the Fifth Amendment to tho
| Constitution. Congress should not make.
directly or indirectly, through a commits
sion. rates that fail TO make a fair re-
| turn on the full value OF the property
]
| teenth Amendment States should not
make cOnfiscatOry rates. Surely the
present method OF paying the railroads
| for transporting mail and parcel post.
| and the attitude Of Congress about il.
are absolutely unjust. Since the inau-
/ guration OF the parcel post and the in
crease in the weight limit to fifty pounds.
| the New Haven Company is underpaid
at least 81 10000 a year by the govern
ment for service performed and facili-
ties furnished.
Valuation of Railways.
The government and the railroads are
! now engaged in making a valuation Of
the railroads. The railroads do not OBJ
ject to that work. although the cost will
he very great But in making that valu-
alton all elements OF value must he con-
sidered and the railroads should be pro-
, teCted by constitutional guarantees Just
as well as all other property is protected
II this is done. the valuation will, in my
judgment. in most cases. prove to be
more than the capitalization. and the
charge OF overcapitalization will be re-
I futed.
confidence and credit are vital to any
business, and particularly to the railroad.
Earnings under honest and efficient man
4 agement should be enough to bring the
! necessary confidence and credit and to
permit improvements TO he made each
year out of earnings. and thus keep down
new borrowings. They ought to be SUM-
ciont also in good times so as to permit
the creation Of a surplus for use in poor
times. Many improvements are needed
by the public which produce no now rev.
ouue. but really increase expenses. such
as better stations and cars. elimination
Of grade crossings. and eleCtrifiCatiOn. and
the railroad owners and managers would
be glad to provide all Of these things
II they had the money. 1t would seem
as II a sound policy for the State and
the nation would he to strengthen the
credit of the railroads and not to strain:
so that securities now in the hands OF
the public will he considered safe and
new securities may he sold to make
those improvements which will shortly
become necessary to carry on the busi-
ness OF the country.
There are "A number of signs that
the pendulum of regulation. having
swung so far in the direction of drastic
and almost stranglin= legislation. has
stopped. and ii is most earnestly TO lie
hoped that the damage already suffered
by the great transportation interests or
the country can be repaired before the
next uplift in business.
Says Need Is Great.
AS an academic proDosition. ii seems
TO be conceded that the railroad indus
try needs more help than ii can obtain
from itself The need is great and the
time is short within which to prepare
for the growth of the country, for can
anyone believe that the United States.
with 100000 people. with sl0Oo0.OOo ono
of new agricultural wealth produced each
year, and nearly SlSO0l.0O0OoO in banks
and savings institutions, is going to
stand still? OF course it is not. and il
is going ahead again and people will
want coal and ore and iron and steel
and lumber and merchandise and manu-
factured articles moved about the coun-
try in quantity greater in the next ten
years than ever before. To do 1t trans
portation must be available. and the ma