Ashland tidings. [volume] (Ashland, Or.) 1876-1919, 1915-09-16

and that they be released from
"the tyranny Of prejudice and re-
lieved from the paralysis of uncer-
tainty.
Whether it be the shareholder, the
bank depositor, the holder of insur-
ance policies, the railroad employees
and their people, or the public gen.
orally, all will do well to remember
that amid the loose and casual talk
about watered stock and over-capi.
talization it is no longer seriously
contended that the railroad proper
ties of the United States are worth
less than the amount of their capi-
tai.
Yet the earning power of the rail-
roads upon the capital employed has
so declined that at the present time,
out of every 500 of gross earnings
which comes into the treasury $14
has to be set aside to pay interest
upon bonds, although the bonds bear
but moderate rate Of interest.
These bonds were taken upon
faith in the earning power of the
properties and were issued in COM
pliance with the laws of the land.
They are held in this country and
abroad, and this young and great ma
tion can we'll see to it that the earn
ing power of its railroad activities is
maintained.
Especially is this so since it is
known throughout the world that
the railroads have been under gov
ernmental scrutiny and control for
more than a generation.
1t is true that railroad financial
administration may be criticised in
spots, and just criticism is wise, but
they are like certain dramatic points
in a picture, they catch the atten-
ton but they do not tell the story.
The people, instead, may be. invit-
ed to survey the whole history of
American railroading, from its pion-
eer beginnings, through unmapped
difficulties and through periods of
crisis when great administrators
pledged their personal fortunes to
save the properties, down to the pres
ent moment; and in wide survey OF
fifty years it will be acknowledged
that as a bank may fail without i'm
periling the banking system, so the
long ordeal through which the Amer
ican railroads have passed still finds
the moral basis of railroad manage
ment upon a very high plane in
which the American people may take
becoming pride.
In 1904 these railroads killed one
passenger in carrying S1,O0O,OOO of
people the equivalent of one mile.
Ten years after, in 1914, but one pas
senger was killed in carrying 1885,
100000 of people the equivalent OF
one mile, or the whole population of
the nation five miles.
In the same year, 1914, 35,0OO,-
100000 passengers and 2SS,00O,-
900, tons of freight were carried the
equivalent of one mile, and at cost
per passenger and per ton of freight
which compares more than favorably
with the great empires of the world.
| have purposely stated in such terms
these figures which are so large as
almost to bewilder.
There is just one thing which the
railroads and the people can not es-
cape in any event. namely: Taxes.
Railroad taxes have risen from less
than $62,OOO,OOO in 1904 to $14O,-
100000 in 1914.
That is, they have risen 127 per
cent this ten year period, until now
out of each 500 the railroads collect
they have to pay in taxes $4.6O
This means that of their net in
come, after paying their operating
expenses only, the. railroads have to
pay in taxes SIG out of every 500,
and that is before paying any inter-
est on money borrowed or a dividend
to any shareholder.
The railroads expect to pay their
share of the taxes, but the variety
and extent of taxes paid by railroads
is of interest to the people simply in
this: that the increasing burden of
taxation now aggregating
over $40, 100000 to be met by the
railroads out of their earnings.
Consequently it is in the public in
crest that the margin between oper-
ating income and operating expenses
1e wide enough to enable just taxes
10 be paid and just compensation
given to employees, without impairing
he physical property and equipment,
which should be maintained at high
standard of excellence.
AS matters stand today, compari-
zion of the ten-year interval, 1904
With 1914 shows that the onerating