The Washington herald., 1915-04-02

| In a thoughtful. pointed article en-
titled "Hamstringing the Corpora
| tions." The Week. published In Colum-
bus. Ohio. and calling itself a Journal
of fundamental philosophy" describes
what legislation has done and is
| threatening to do to railroads oper-
ating in Ohio.
"As sure as earthquakes will cause
people to run for safety-just as sure
Is ii that when loss threatens capital.
it, too. will fee." is the striking be-
ginning. The article continues:
Capital must be owned by either
the State or the individual. II 1t is
owned by tho individual the state can
not expect nor compel 1t to work under
rules which prohibit profit or which
threaten loss. The State has no right
to enforce conditions to govern a pri-
vate corporation that it will not en-
force against itself.
Every time the State adds equip
ment to Its service, men to it's pay
roll and increased pay to its budget,
! 1t increases its service rate to the peo-
pie. But when ii says to business that
1t must not employ it's workers be-
yopd a certain number of hours daily.
when 1t limits the amount Of labor
such employees may be called upon to
perform. when 1t compels use of GER
tain tools and impresses certain liza
bilities, it does not give business the
power to collect a greater service rate
or revenue, but to utilities says al
ways they must reduce their rates.
II the State owns the capital, condi
lions are different. when the service
Is performed at a loss as compared
with revenues derived therefrom, as in
the conduct of the courts. II merely
taxes all the people to make good the
loss.
II the Federal government were to
buy the railroads and operate them,
what would Ohio do then to reim-
burse itself for the 100000 taxes
now collected from these roads, the
$1,s35,212 collected in an excise tax.
the thousands paid in for support Of
the public utility commission?
What would Ohio say then as to full
crew laws. sixty freight car train
limits. caboose car regulations. serv-
ice rates. etc?
Injury to Railroads.
To destroy capital or to intimi-
date. confuse. handicap. or threaten 1t.
produces the same decrease in effective
results as would follow like attitude
toward our time. our labor and our
knowledge. We cannot inJure any one
of these working agencies without in
jury to all. Yet We have been doing
this very thing. in our Legislative
halls. for the past few years 10 capital.
Probably in no other industry
than in railroad affairs. is there
more vivid illustration as to what
we have done and are doing
to invested capital, the results of
which are shown in the court records
of reccivcrships. and in financial GEN.
tiers Of Investments. The nations and
states attitude toward these corpora
tons. representing investments rum
ming into the billions of dollars. is re-
Elected in these financial centers; the
records for 1913 showing that. on June
20 of that year the national banks of !
the country reduced their holdings
in railroad investments s110.0OO.OO0 be-
low those same held one year before.
In Ohio. in 1913 over 1911, we increased
the valuation of these corporations for
taxation sS3,1Oi.150. Laws have been
enacted to increase expenses and de-
crease revenues. anti rnOugh these
roads have expended millions of dol
lars to Offset these increased eX-
penses by increased economies, we are
now purposing enactment of laws TO
absorb the profit produced by such
economies. Is there any wonder they
are crying out their protest? Is there
any wonder they are asking increase
IN the rates to be paid by the travel =
ing public? How could II be other |
wise?
We inflict upon the railroads such costs |
that their passenger train expense. per |
passenger train mile. goes up from 99.7 |
cents in 1896 to sl.?l In 1913. and we re- |
duce the rates that may he charged until !
the roads net passenger train revenue |
per passenger train mile falls from 40
'cnts in 1895 down to 81 cents in 1913. |
which was the experience of the Penn
sylvania system, |
Efforts to Economic.
Seeking to cconomiZe in the operating
cost of their roads. so that in given
Periods of time. with the same expense
of operations, greater volume of freight
may be carried. that earnings may he in
these railroads have recently en-
pended in Ohio large sums of money.
over s3.C"0"O1 each by the Erie and the
II. Il o. Railway. and nearly $500 90
the Big -Four road. in reducing grades
that more cars may be hauled by a train
long such improved parts of the road
way. In addition. great sums OF money
have been expended to abolish grade
crossings. In Columbus alone the |
railroad cost has been A.5O00o0. The re-