The Prescott daily news., 1915-12-15

l EI road system. He states that but for the ability of those managing the op- eration of the railroads in getting more tonnage over the road with less equipment, thus making a material saving, that the railroads would have been forced into the hands of receivers long ago.
 MT. Bush, in recently discussing the subject of why his railroad was in the hands of the receiver, reviewed the conditions for years rast, starting with the railroads in sparsely settled communities fought vigorously for business, making rates which scarcely ever were restored to remunerative basis. In those days there was much building of railroads, with transporta- tion facilities in advance of the re- quirements. In order to prevent emp ty cars passing over the rails, the en- lployes of these roads made liberal concessions to get the business. While the rates were ruinous, Pres. Bush is optimistic enough to say that great good was accomplished by stimulation to production and to industry. In spite of these low rates, when the h. terstate Railroad Commission was created, it promulgated lower rates, and has almost continually since low cred them. "The immense growth of traffic in the past years, and the large expendi- lures of new capital which provided more ample facilities, thus making practicable greater efficiency in oper- ation and a reduction in the unit of cost, have been the only means by which the business of the country has been thus far saved from strangulation and the great railroad industry saved | from a more immediate insolvency" says Mir. Bush.
 Quoting from an English expert, MT. Bush places the railroads of the United States first in the world in economy of operation, and far ahead of foreign countries in the fullest of utilization in cars and locomotives. | Yet the foreign countries charge much higher rates than are permissible in the United States.
 President Bush shows by statistics that west of the Mississippi the freight train mileage in 1914 was B. 100000 miles less than 1t was in 1904, though the number of tons carried one mile was 2S,000,000,000 greater than in 1904. This efficiency, he says, can not be maintained without substantial additions to equipment and improve ment of plants and facilities, and as the money for this must come from a surplus over operating expenses, it becomes a problem as to how it can be obtained. He further shows by taxes of $14,000,000 in 1901 and $42,- GOO 900 in 1914. The compensation to employes of these railroads, operating | 9S, 900 miles, increased from $157, ,939,- | 900 in 1900 to $404, ,847, 900 in 1914. He lists 82 railroads, operating il ,98S miles of railroad, so per cent tribu- tary to St. Louis, who cannot pay their bills and are being operated by re- ceivers. The capitalization of these companies is S2,264, 100000, consist ing of $1 ,475,0 100000, funded debt, and $7S9, 100000 stock. The revenue of railroads available for dividends in the United States for the year 1914 was less than one per cent of the capital stock.
 It will no doubt be con iecturod ny many that mis-managemart vas the predisposing cause of this e~o~n,ous insolvency, and that it was brought on largely by the stock and bond operations of the railroad spectators states Mir. Bush. "The securities of some of the insolvent roads may have been manipulated to the detriment of the companies, but entirely apart from such methods, the practical operating results disclose the facts that the railroads are fast declining in their ability to make returns on the cost of road and equipment
 "It is mistaken conception, though one generally prevalent, that the rail- roads are over-capitalized and seek to obtain exorbitant rates from the pub lie to pay interest on the excessive capital. The fact is, we have the high