Omaha daily bee., 1915-01-24
RAILROADS IN NEBRASKA
LOSING THOUSANDS
PAY MILLIONS TO PEOPLE IN WAGES
TAXES AND FOR SUPPLIES
EVERY YEAR

FoauS that the scent passenger rates DC
restored In view ot'the facts and fig
uros quoted above, is there single fair
minded citizen in tho state OF Nebraska
who will contend that the railroads arc
not entitled TO holp2 lie not the present
situation an Impossible one and does Il
not mean inevitable wreck and ruin to
several thousand miles Of railroad which
are Intensely essential to the we'll being
OF hundreds Of towns and farming COM
munities throughout the state?
Losses Growing Continually.
From these figures. which are open 60
absolute proof. II can be seen that the
Nebraska lines are not only sustaining a
loss amounting TO thousands ot dollars
annually on their traffic, but that with
an ever increasing cost OF operation these
losses are constantly growing heavier
and ~ the service 10 the public is 60 re
main efficient and adequate. and n the
railroad Investments OF the state are not
TO be driven to the point OF conflscatlon,
the people Of Nebraska must. through
their rate-maklnG authorities, consent 10
return 70 the scent passenger fare.
which was abolished without a due re-
gard for increasing labor and supply cost.
or an adequate interest return upon the
millions invested in Nebraska railroad
properties What industry Il there IN the
nation which could have tolerated a re-
duction OF one-thlrd in ita income on q
largo 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 2-cent passenger
law enacted by the Legislature on the
ground that II was arbitrary proceed
uro which did not take into consideration
a fair return upon the railroad properties
of that state-and few men stand higher
in the esteem OF the American people than
this great jurist, who did perhaps as
much as any other man in the country 20
break up illegal and unfair practices on
the part OF large corporations.
80, too, the supreme court OF Pennsyl-
vanta held that 2-cent passenger fare
was unconstitutional In that state be-
cause II was essentially confiscatory. This
high court took the position that capital
invested In railroads. as well az in other
lines of private property, Is entitled TO
earn 8 per cent on a fair capitalization
and that the arbitrary enactment OF
2-oent fare rendered such q return upon
the lines OF tho Pennsylvania impossible.
II also took the position that railroads
not only have the right to insist upon
fair return upon both freight and pas
senger business. but that It Is their duty
to do so in order that one class of patrons
may not be compelled TO pay an inequit-
able rate TO make up the losses sustained
in another department.
II the arbitrary enactment OF a 2.oent
M a. l. 81 a. -
OF New York and Pennsylvania, where
there.ar lsrge centers Of population and
where the nations greatest density OF
freight tonnage naturally exists. how
much moro unfair is such a rate In a
purely agricultural state like Nebraska.
which has total population OF only a
million and quarter with no large man
ufacturing oenters?
The reader is familiar with the recent 6
per cent increase In freight rates granted
by the Interstate Commerce commission
to eastern iines--and again, as the com
mission wisely says. II the precarious
financial conditions created by the Euro
pean war renders this increase necessary,
how much more are the weaker western
lines. which are compelled 20 exist almost
altogether upon an agricultural pat onage,
entitled to some substantiai relief2 The
population per square mile In Massachu-
sets is A. in New York 2ol. In Pennsyl-
vanis ISL. In Ohio IL, while In Nebraska
II is only IS. II under these circun,-
stances the eastern lines need relief, can
there be any doubt about the justice Of
the plea made by the western roads?
Facing Grave Problems.
PROFESSIONALLY we are facing some OF
the gravest problems that ever confronted
us as a nation-and these probiams grow
largely out OF war which Is without a
precedent in history. True, with q rapidly
increasing cost Of operation on the one
hand and reduced rates on this other. Il
was merely a matter Of time until the
railroad question was bound to become
pressing, but the great tragedy across
the seas has suddenly resolved into Al,
acute crisis a problem which might 9TH
erwise havf been solved gradually and
without any far-reaehing Industrial dis
turbanos.
The United states Is a heavy debtor ma
ton. During the average year our bal
ance OF trade against the rest Of the
world amounts 20 approximately 10000,
600 but on top OF this we always owe ap-
proNimately another ssoo.oO0,00o, which
heretofore we have been able 10 stand
off by selling Europe industrial securities
to that amount. Now. however, the great
warning countries have served notice that
they not only expect us 10 pay our debts
above our trade balances In gold, but that
IN addition they look to us 20 buy back
from them hundreds OF millions OF dol
lars worth Of American securities which
are now held abroad. II was 10 deliver
this grim message that Sir George Palsh.
Of tho English exchequer, paid his recent
visit To the United states, and when he
got through making his statement to "A
gr0up OF big New York bankers an old
veteran finanoier, who had survived many
financial storm, remarked 70 his pro
foundly silent auditors, 1.-THE sheriff, with
writ Is on the doorstep"
That a great nationwide crop next year
viii give " the largest trade balance we
have ever known IL undoubtedly true
and yet. with having TO finance all our
monetary needs at home from this time
on and buying back millions Of foreign
owned securities, the future at best Is
precarlous. However. the heaviest strain
OF eli will come when the war ceases and
when Europe begins 10 rebuild the hun
dreds OF millions OF dollars worth Of