New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1916-12-30

and trusts. Railroads, however, suf-
fered more severely than any other
class of business organizations, prob
a blv because of their intimate rela-
tons with the public at large. Be-
tween the upper milestone of OPP
pressive Federal and State legislation
and the lower milestone of labor de-
mands and increased expenses,
American railroads only escaped Sc
rious financial difficulties, if not bank
ruptcy, through the timely revival of
business which brought them general
prosperity and averted an imminent
crisis Last year their total income
was $500, 100000 and net $1,098,
! 600, 900, an altogether unprecedented
total The present ratio Of increase
in net is large, but in view of large
increases in expenses will not be long
maintained. For years the demands
upon American railroads by labor
and a hostile public have steadily in
creased, while J unfortunately state
and federal commissions imposed re-
straints and burdens Which impaired
their profits until resources and credit
were so crippled as to make it i'm
possible for the transportation lines
to secure the capital required to
provide new mileage or improve
ments.. In 1909 the railroad capital
applications were estimated at a little
over 100000 stocks and $780,
600, 900 bonds. In 1915 such applica-
tons had sunk to $4,000 900 stocks
but risen to 1851, 100000 bonds. This
tendency toward shrinkage has been
going on for a series of years, reflect
ing the distrust Of investors in this
class of securities arising almost en-
tirely from the political conditions
just referred to. In the eleven
months of 1916, stock issues have
been 500, 00O,O 900, bonds $34S,OOO,OOO
and notes $500, 100000, indicat ing a
partial revival Of interest Of investors
in railroad shares. Thefe has been
little new addition to mileage or facil-
tiles for several years, and the prob
lem Of securing adequate new. capital
is the most formida BILE problem at
present confronting railroad man.
ayers. Increased facilities are need
ed. The government certainly can
not provide them and private capital
will not so long as the government
foces increased expenses and dimin-
lshed revenue at the same time. Pres
ent traffic is abnormally good but
when normal conditions return the
situation will again become critical
unless relief is meanwhile afforded
Fortunately, there has lately been a
change for the better in public opin-
ion towards the railroads, and the lat
ter how have a much better prospect
of securing just treatment than at
any time during the past decade.
Nothing occurred more effective in
bringing about this change of opinion
than the unreasonable demands of
railroad employees, followed by the
threat to tie up the railroads, of the
country if not complied with This
hold-up awakened the public to the
seriousness Of the situation, and the
latent spirit of fair play which fortu-
nate1y exists in the American public
came to the rescue. 1t is premature
however, to assume that the roads
VIII henceforth have clear sailing.
The action of the brotherhoods in in
slstlng upon operation of the Adam
son law before announcement. of the
decision of the supreme court Great
ed an unfavorable impression. mas
tween railroads and labor. The
much as it reopens the breach be-
tween railroads and labor The roads
! are also still gravely enlba ra ssad NV
dual state and federal regulations bv
frequent municipal requirements NV
| high wages and dearer materials
which when traffic settles down TO
normal volume may prove seriously
1nconVenlent: for it must be ren,en,
| bered that the roads have not ALWAYS
| peen able to compensate themselves
| Tor increased expenses by raising the
| charge FOR their srvices, as has been
done in every other industry. Fu11
| justice will not have been done To
the railroads until they have been re-
1ieved Of hostile regulation bv. indi-
vidual states, or until they are AL
! lowed to recoup themselves. whom
| necessary, for inevitable increased ex
penses by better rates; in other words
until regulation becomes in tel1ieen+
| and just. The question of govern
| ment ownership crops up with in
| creasing frequency, but this country is
not yet prepared or able to seriously
! consider such tremendous exDan
sion of government activities. Our
railroad development, if granted rea-
| sonable opportunity, will provide the
| necessary new facilities far more
| promptly than government, which
| could not afford to assume the risk.
| Government ownership may work in
| smaller countries where transporta-
| ton facilities are ractically COM
| pleted and where political conditions
are more favora BILE than in the Unit
! ed States. The growth and develop
ment of Australia has been distinctly
! retarded by her government owned
| system of railroads, which for lack
! of private enterprise has always been
| behind requirements. Building of
! new lines Is essentially a speculative