The Birmingham age-herald., 1916-02-05

that will reach it's destination within the state of Illinois resting against a parcel whose destination is beyond the state line. Consider for a moment that the one package is subject to the rule of one master and the other must obey the mandate of at least three mas ters. Our courts have held that under the protection of the federal constitu- tion the right of the railroads to charge rates that will produce reasonable in come on invested capital must be held inviolable. Then how can we success fully determine what is reasonable charge to be allowed for invested cap- ital when you leave the determination to three or more sovereignties, each acting in its individual sphere?
 Low rates and adequate facilities are demanded by the public, but the granting of one is often the denial of the other Adequate facilities very oft en require the expenditure of large sums of money, but low rates prevent the accumulation of surplus capital and lessen the borrowing power of the roads
 "Where a transportation company placed it's bonds at 4 per cent inter- est 20 years ago and renews them to- day at per cent, so far as the pub lie is concerned it is identica1ly the same as if the company had increased it's bonded indebtedness by one-half at the old rate of interest. And yet the public derives no benefit whatever from the increased charge.
 CREDIT MUST BE GOOD
 "It is, therefore, necessary in the so- lution of the problem before us in the
 interest of the public, even more than
 in the interest of invested capital, that the credit of our transportation com panies should be so good that they can secure the capital for their present maintenance and their future develop ment at the lowest possible charge.
 Taken as a whole, the transports tion system of the United States, so fac as performing it's proper func- tions in the transportation of our freights to the ultimate markets and the carriage of passengers to their destination with safety and economy, Is breaking down.
 What then must we do to solve the problem? To restore confidence in the minds of the investing public as to rail- road securities? To insure rapid trans portatfon of passengers and freightS to their ultimate destination at reasonable rates, and to provide for the safety O. transportation and the, increased facil- 1ties that are necessary to transport the growing business of the nationi These results cannot be accomplished b. moving backward or diyOrcing oul transportation system from govern ment control Nor can it be accomplished without great danger and great cost tC the people by progressing to the ulti- mate step in advance and accepting government ownership of the transpor- tatiOn lines
 FIND THE MEAN
 Tn my judgment, we must find the golden mean We must solve the prob lem along lines of private ownership and government regulation. We mus consider the wisdom of substituting one master for the 49 masters that regu late our commerce today. We must con | slder the wisdom of government super vision of the issuance of all securi tles by our transportation companie! With the assurance to the public tha new capital will be invested to secure proper facilities and used for legiti mate purposes-not for speculation. WI must assure the public that when the. | invest money in railroad securities i winch are supervised by governmen regulation we stand for a system O regulation which will allow the trans | portatlon companies to charge sucl ! rates for carriage as will enable then 10 promptly meet their interest ac count as. well as their operating ex