The Hays free press. [volume] (Hays, Kan.) 1908-1924, 1915-01-09

road investments of the state are not TO
be driven to the point of confscation,
the people of Kansas must, through
their rate-naking authorities consent to
la return to the three cent passenger
fare which was arbitrarily suspended
by the old Board of Railroad Commits
Isioners in 1907 without a due regard
for increasing labor and supply cost or
an adequate interest return upon the
millions invested in Kansas railroad
properties. What industry Is there IN
the nation which could have tolerated
reduction of one-third IN its income on
a large volume of its business during
the last few years without coming to
grief?
Four years ago, as Governor of New
York, Justice Hughes, of the United
States Supreme Court, vetoed a two
cent passenger law enacted by the Leg
islature on the ground that it was an
arbitrary procedure which did not take
into consideration a fair return upon
the railroad properties of that state
and few men stand higher in the es-
TEEN of the American people than this
| great jurist who did prehaps as much
as any other man in the country TO
break up illegal and unfair practices on
the part of large corporations.
So, too, the Supreme Court OF Penn
svIyania held that two cent passenger
fare was unconstitutional in that state
because it was essentially confscatory.
This high court took the position that
cauital invested in railroads, as we'll as
lin other lines of private property, IS
entitled to earn 6 per cent on fair
capitalization and that the arbitrary
enactment of two cent fare rendered
such a return upon the lines in Pennsyl-
vania impossible. 1t also took the
position that railroads not only have
the right to insist upon fair return
upon both freight and passenger busi-
ness, but that it is their duty to do so
in order that one class of patrons may
not be compelled to pay an inequltaole
rate to make up the losses sustained IN
/ another department.
If the arbitrary enactment OF two
cent passenger rate is unfair to the
railroads of New York and Pennsyl-
wanna, where there are large centers OF
lnopulation and where the nations
Iqreatest density Of freight tonnage
naturally exists, how much more unfair
is such a rate in a purely agricultural
Estate like Kansas, which has total
population of only million and half
with no large manufacturing centers?
The reader is familiar with the recent
| 5 per cent increase in freight rates
granted by the Interstate Commerce
| Commission to the Eastern hnes-and
again, as the Commission wisely says,
if the precarious financial conditions
created by the European war renders
this increase necessary, how much more
are the weaker Western hnes-whleh
are compelled to exist almost aitogeth-
er upon an agricultural patronage-en-
titled to some substantial relief?
FACING GRAVE PROBLEMS.
Internationally we are facing some
of the gravest problems that ever con-
fronted US as Nation-and these prob
lens grow largely out of a war which
is without precedent in history. True,
with a rapidly increasing cost OF opera
| ton on one hand reduced rates on the
other, it was merely matter of time
until the railroad question was bound
to become pressing-but the great
tradegy across the seas has suddenly re-
solved into an acute crisis a problem
which might otherwise have been solved
gradually and without any far-reaching
industrial disturbance.
The United States is heavy debtor
Nation. During the average year our
balance of trade against the rest of the
world amounts to approximately $780,
600, O0O-but on top of this we always
owe approximately another $500, OOO, OOO
which heretofore we have been able to
stand off by selling European industrial
securities to that amount. Now, how
ever, the great warning countries have
served notice that they not only expect
US to paw our debts above our trade
balance in gold-but that In addition
they look to US to buy back from them
; hundreds of millions of dollars worth OF
American securities which are now held
abroad. It was to deliver this grim
message that Sir George Paish, of the
English Exchequer, paid his recent visit
: to the United States, and when he got
Through making his statement to q
group OF New York bankers, an ole
veteran inancier who has survived
many financial storm remarked to his
) profoundly silent auditors sher
5 if, with a writ, is on the doorstep"
That great nationwide crop next
+. year will give US the largest trade bal
: ance we have ever known is undoubted
I lily true-and yet, with having no financ'
all our monetary needs at home from
e this time on and buying back millions
: of foreign owned securities, the futur'
: at best is precarious. However, TIL
Heaviest strain of all will come whel
g the war ceases and when Europe begin
s TO rebuild the hundreds of millions o
. L L