The Richmond Virginian. (Richmond, Va.) 1910-1920, 1916-01-24
RAILROADS LOOK
FOR JUST TREATMENT

Qualification and hope over politi-
cal solcitude for the welfare of tho
railways at the opening of 1916 are
intensified by the solid way in which
the political leaders have based pres
ent procedure. upon the teachings Of
the past. President Wilson prescribes
no explicit remedy, but recommends
a search for remedies. Chairman
Ncwlands, of the Senate Committee,
in his resolution calling for joint
committee of Congress avoids the
promotion OF any specific provision
leading railway executive expressed
the attitude of his colleagues when
he pledged them to welcome solu-
ton however it may differ from any
preconccivcd views
like the Currency Investigation.
II was in this spirit that Congress
launched in 1908 the quest for light
land learning. which eliminated in the
Federal Reserve act The chairman
of the National Monetary Commission
frankly dlsclaimed at the outset any
views as to the terms of Dill
and congratulated the country that
thoughtful men had refrained from
expression of opinion and had been
willing to await an examination or
the information which we are to furn>
ish" That commission laid the foun-
datfon for what followed by going
WheresoeVer guidance might be
sought by hearing whomsover might
help and by employing specialists
whose reports became permanent con-
tributions In identical fashion the
Newlands resolution would authorize
the proposed committee to appoint
the necessary experts. clerks and
stenographers, and to do whatever Is
necessary for a fun and cpmprea en-
sivc examination and study OF the
subject
Aid BY Business Bodies.
In the matter of banking, business
organizations co-operated in the dis-
fusion of knowledge and opinion and
| in crystalization of public sentiment
fer the guidance of Congress. Bust
! ne SIS is~much more thoroughly organ
| lied today than it was then. New
mechanism has been created. In solv-
| ing the railroad problem this is avail
able for use. There is ma'.,fest
willlr gness OF business bodies to APP
preach the subject without preJu-
dice. The Railway Business Associa-
ton pledges Congress its most sincere
and candid aid and ventures TO hope
that seven years passed in constant
study of the several phases OF the
question as wen as in the cultiva-
tor of philosophical attitude viii
enable us TO render substantial as
sistanCe
Portents Amid Plenty.
| The industrial interests which sus
/ tain the Railway Business Associa-
! ton are now enjoying, after a long
famine, substantial railroad orders.
Railway income available for addi
| tions and betterments and for divi.
dends has nevertheless failed TO grow
at the same rate as gross earnings.
/ From 1911, a record year at the time,
/ to 1913. a new reCord-year, gross
earnings increased $340.263. ! ..
while operating income remaining af-
! ter payment of operating expenses
/ and taxes increased only $50, $3.50
! Then came an off-year, 1914, when
gross fell away sSt,721.412 and OPP
| Grating income dropped $125,17S.169
under 1918. During this period many
millions had been invested In the
| hope so completely disappointed by
| the event. that the additions TO plant
| would earn a return
Collapse of Additions.
The result has been the collapse OF
additions and hetterments. In the
calendar year just ended, according
tn the. returns of the Railway Age
Gazette. the freight cars built were
the fewest since 1904 with the single
exception of 1911: the passenger cars
the smallest since 1902 except 1908;
the locomotives the smallest since
fiS9S: the construction of new miles
of track about 60 per cent of the
smallest previous year since 1893. II
is the persistenCy OF this trend that
has developed political solcitude.
Large tonnage and large earnings
have not on this occasion blinded pub
lice and public officials to underly-
ing financial problem. The problem
has before been vivid in periods OF
business depression. but it is now
coming TO be recognized as a CON
tinuing menace in boom and slump
alike. Political as well as industrial
leaders have acquired Il more abid
ing realization of the rock bottom
facts.
The railway problem ia as complex
and difficult. If not more so. than
was the currency, but business men
are infinitely better acquainted with
one another and with men in public
life than they were ten to five years
ago. and there Is good reason to eX
pect. that the American people will
adjust this situation as they have ad
Justed so many others. great and