Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1916-01-28
RAILROADS NECESSITY
Part Of Community and Should
Be Treated Accordingly
Address to Grange by Hon. T. N. Vail
transportation as Necessary as
Harvesting.

spoke before the Changers of Vermont
at the recent state Grange banquet in
Burlington, was unable to deliver all
of his address, because of the lateness
of the hour when he was called upon.
His address had been printed in full
ia pamphlet form for distribution
through the mail. 1t is a searching
survey of state needs and opportun-
tiles and is intensely interesting
throughout. The following is what
he wrote relative to the railroads and
the attitude of the public toward
them:
CAN wealth is created by construc-
tive and productive work, either di-
rectly or indirectly. Directly, when
1t is the result of developing some in
dustry or utility which serves the PEG.
pie. When you are, by your work, de-
veloping continuing productive pow
err, when you are producing some COM
modify or giving some service which
is of some value to the public, and
which the public needs, you are ere
ating wealth. TO be of value it must
be of use, that it meet some need and
must be, at least, equal in value to
the price paid by the purchaser.
"lndirectly, wealth is created by
the building up of industrial centers,
creating consuming, purchasing pop
ulation, enhancing the value of local
or neighborhood property for building
or producing purposes.
In all this transportation plays
the leading part. Transportation and
Accommodation changes local stag
nation into world wide prosperity.
"You may own the land. Your
fathers may have come into the will
derncss and subdued it, you may have
had it in your family for generations,
but beyond your work to make it pro-
duce more or by clearing up the land,
you have not added to its value. The
value over and above its value to sup
ply your own needs is dependent up
on a market for its surplus products
'The value of your products, is the
price the consumer pays less the cost
of marketing, which includes the
transportation and middle man. The
transportation and intercommunica-
ton facilities which put you into
touch with the world at large, are just
as necessary as the planting or har
vesting.
cit is absolutely true that large
part of the railroads in the state of
Vermont never have and never will
pay an adequate return on what it
would cost to rebuild them. l doubt
If single one would. Outside of n
comparatively few miles no railroads
would have been built in this state
simply from the standpoint of railroad
investment. There are no two rail.
roads in the country that cost the
same to build mile, nor can any two
railroads be operated at the same
cost. And, as a rule, the easier the
country and the cheaper it is to bu1ld
the less the cost of operation and the
greater the traffic. Uniform rates APP
piled to all railroads will bankrupt
many, but at the same time give 9TH
ers ample revenue.
"The railroads in Vermont were
built by the pioneer umberman, or
the speculative promoter or contractor,
and after the first purpose had been
served have been operated by trunk
lines, usually at direct loss, but for
the indirect advantage to their sys.
tens as distributors, feeders, or con-
meeting links.
A large proportion of the railroads
OF the whole country will not under
existing conditions, over q term of
years, earn enough to properly main
tain and operate them. In particular
ly prosperous times they appear to
show a surplus, when times are nor
NAL or subnormal the receiver takes
possession. 1t is then the optimist. ,
the constructive promoter, who takes
large chances for large gains, reor-
ganizes them, combines them with
more prosperous roads to which they
act as feeders, spends money on the
equipment, stations, roadbeds, and
makes them of greater service to the
public. In doing this he is doing a
service to the public dependent upon
them. So far as he has created a per-
manent enterprise, which is of service
to the community, he has taken moth
ing from the community at large.
Rates cannot be raised to pay divi-
dends; these are controlled and have
been for years beyond the control OF
the roads. The promoter may create
large capital, which he may sell at
big price, but from whom does he
get it? Not from the community, but
from the individual. If the stock is
worthless he has not harmed the COM
munity, only the individual to whom
he sold. The money is not lost to the
community. No wealth has disappear
ed. 1t has only changed hands. It's
like betting on horse racing, cards,
and other games of chance, which
many indulge ina foolish thing to
do, and is not to be upheld or excused,
but 1t is likely to continue so long as
people have property and like to take
chances.
"You have had many speculations
in Vermont of many kinds, in which
high values were created, and still
higher ones, so long as the craze last
ed, or until the man who bought could
find no buyers, but found himself hold
ing the bag while some other fellow
had his money
cit would not be bad thing for
the state if another railroad boom
should start, and few cross-country