Five Mile Beach weekly journal., 1917-07-06

aAo lhC ~ oOoA tAS
same vital relation to. the industrial
system that the big blood carrying
tubes bear to the human body.
There was a time In the history of
industry when manufacturing was a
one man affair, when every laborer
owned his own tools and made goods
for his %neighbors. That system passed
away with the invention of the steam
engine, and no sane man today would
wish for its return. The modern high
ly developed Industrial organism de-
ponds absolutely on the facilities for
distribution provided by the railroads.
But how have the railroads been re-
warded for making possible the evolu-
ton of industry? In recent years they
have been made the subject for all
sorts of legal vivisection. They have
been chloroformed and cut open, and,
as usual In such cases, the surgeons
have differed as to the nature of the
malady and the necessary cure. The
prevailing theory, however, vas that
the railroads were suffering from an
abnormal growth of the income, so
their income had to be amputated.
From a professional point of view the
operation was eminently successful,
but in a number of cases the patient
died. Recent mortality statistics show
a total of 1862 miles of steam rail
road in the hands Of receivers, the
rouds involved having a total capital
zation of ST. 100, 4Ss,210.
One Roa Sperd, $1e,0 o,o00.
The avalanche of adverse laws direct
ed against railroads has been so over
whelming that since 1906 the Pennsyl-
vania railroad on its lines east of Pitts
burgh alone has spent $19.O00,00O com
plying with the legislative enactments.
Approximately that sum is equal to 9
per cent income on $300.000.00O.
Interstate railroads are exposed to
contradictory laws enacted by the leg
islatures of the states through which
they run. About nineteen states are
tryia4 to regulate the issuance ofSaiL
road securities by different methods.
Twenty-eight states specify headlight
requirements without any cooperation
with one another. Fourteen states
have different safety appliance acts.
Sometimes the orders of the Interstate
Commerce Commission, so far as they
concern intrastate matters, are prac-
tically nulliied by the failure of the
states to approve them. 1t is estimat-
ed that the railroads of the country
are required to make Over 100000 re-
ports a year to various state OF federal
authorities.
Of course the railroads do not bear
the burden Of this legal yoke alone. 1t
rests as heavily on the shoulders Of
the 100000 or more owners of Ameri-
can railway securities, many of whom
are dependent for support upon
the income from these securities In
surance companies, representing 3d.
100000 policy holders, have 81. 100000
600 invested In railway securities. and
savings banks, representing 100000
depositors, have $500. 100000 invested
in railroad stocks and bonds.
Wealth of Roads Benefits Many.
According to the statistics of railways
in the United States issued in 1914, the
IdllIOdoS lDCn ClAp1OJC IL tlOJ%OO pIl-
sons, to whom they paid approximately
81. 1881, III 92 per year in wages and
salaries. The expenditure of that sun
Is certainly a substantial contribution
to the income of all mercantile and
manufacturing enterprises. But, while
the railroad situation claims the atten-
ton of all classes of citizens, 1t must
n@nan1 10 tho indTIcfr~fa1 Uunrknr In
bread and butter terms. for he is the
first to feel the effects of railroad I'm
poverishment. This was evidenced In
1914 and 1918. when the railroad sit
uation was most acute and when thou
sands of men were out of work and
the industries of the country were In
q serious condition.
How can the industrial worker help
to put the railroads on a sounder work
ing basis7 BY joining in a general pro
test against the legislative avalanche,
by voting against the legislator who Is
instrumental in the passage of the bur
densome and taxatious laws that re
duce railroad profits and the income
on railroad securities. 1t is vitality nee
essary that these securities should be
made more attractive to the investing
public so that the railroads can In
crease their credit and obtain enough
money to make improvements and In
crease their equipment.
Sound Credit Essential.
RAILROAD regulation must encourage
sound credit or regulation Is a failure"
says A ]. County, vice president of
the Pennsylvania railroad. Sound
credit is just as essential in the rail-
road business as In mercantile affairs.
and a railroad cannot have sound cred
It without the earning power to pro
duce a credit basis. "-IndustrtaI Con-
~serration, Nep York.
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