davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1917-07-29

| have been in and seen at once sew
eral railroad accidents with fatali-
ties, and heard, of course, the first
frank explanations of the workers.
There are few propositions that
seem to appeal to common sense, but
that certainly are not applied to the
American railroad situation. Theyare
not the banalities of politicians and
other whimsical sentimentalists and
misunderstanders such as "No rail
/ Dad should overwork its men,; and
Give per cent is a big enough re-
turn upon any sound investment" :"
They are not even the moralzings of
reformers to the effect that the rail
roads of to-day are being punished
for the sins of the railroads of yes
terday. "Let the dead past bury its
deadW A new world has dawned,
and things should and will indeed 90
differently, as Luther said of the
Germany Of his day. Our business
is to move crops and Goals and metals
to their markets quickly; and to
mobilize the lRbOrers of the land at
the points where they can do us the
most good now.
New-York tribune., 1917-07-29

and yet preserved apparently for.
ever.
The third proposition follows, that
in sound Jurisprudence the chief
business of government is punish
ment, not prevention. Freedom is
the right to do as one pleases, at his
perils of the common law and of for
feiting the good opinion of ones
neighbors and of mankind. 1t is
quite true that we have very nearly
cured the evils of the old days in
railroading; but at what price? We
are like the peoples of old who for
bade merchants to go upon the high
ways lest they be robbed, with the
result that almost no goods were
exchanged and progress was held
severely in check.
II was said some years ago by a
Senator of the United States that II
would require a thousand clerks 10
read the railroad freight schedules
as fast as they were issued. The
remedy has been TO put the railroads
in straitjackets and their hands in
bags that they might write no new
New-York tribune., 1917-07-29

that time almost no one had any
such view Of the two railroads.
We have been so busy with stocks
and bonds and notes and refundings
and reorganizations, with an eye
first to the stock market and next to
the legislatures, that most Of us
have forgotten and some apparently
have never known that the first
business of a railroad is not to
serve the public, not to afford gam
bling opportunities upon the mar
New-York tribune., 1917-07-29
Aims to Eliminate
Dummy" Directors

Further, it is proposed to bring
about the abolition of the practice of
electing dummy" directors and
to make directors and corporate
officials responsible for all pub
lished reports of the activities,
earnings and affairs OF the corpora
ton. This provision, coupled with
that which proposes that close
scrutiny of corporate financial
activities shall be maintained at all
times, is expected to establish a
much needed confidence on the part
of the general public in all corpo-
rate enterprises and the men who di-
rect them.
An association of investors such as
this, because of the constructive and
cooperative nature of its policy,
must occupy a high place in the
history-making readjustment now
New-York tribune., 1917-07-29
Development Of the Nations Transportation System at Standst
for Years. Must Be Encouraged Because Business cannot
Grow Faster Than the Facilities for Moving An Economist
Saws That Complete Change Of Public Opinion Must Be
Wrouqht if the Blight on Progress Is To Be Removed

these that the common sense PROPOSE
tions should be observed. One is
that the American railroad needs as
manu- cars and locomotives and as
much other equipment as are re-
quired at the time OF n'Grimum de-
mand. Average demand, with req
uisite supply, means painful and dis
concerting failure when the peak of
the load comes.
A second proposition is that since
a railroad is business it requires a
free hand in its management. Un-
shackle the railroads, and give them
room for development. The trouble
is not alone with the Federal govern
ment. Texas may thank herself and
her own Legislature that her splendid
eastern half, with $4,000 square
miles of the richest soils and with the
best agricultural climate on earth,
has only l2,O0O miles or railway
trackage; and most Of this in inferior
condition.
This proposition may be stated as
one of taking the hood off the eyes
of the railroad and letting it once
more look into the present and the
future with ambition and confidence.
Shackled and hooded, the railroads
of America haze stood almost still
for many a year. The last railroad
to be modernized was the Union Pa
cifc, as every one knows. The rail-
road situation reminds one Of a
photograph, with the human figures
as it were transfxed for eternity; or
of flies caught in honey motionless
New-York tribune., 1917-07-29

New England States have 1913 in
habitants dependent upon every mile
of track, and no other section has
anything like so many. Illinois has
but 462, and Iowa 224.
In the last six years / have been
over the tracks of almost every rail-
road of any Importance in this coun-
try, and in every state without eX-
ception. But little of this travel
was in long stretches, for | had busi-
ness in many cities. To judge by the
train schedules and service, by the
rolling stock and the railroad sta
tions, and by the talk of trainmen
and of passengers and Of merchants
with freights to send and TO get,
there are a dozen more or less fine
railroads in America; and even these
might be better, and would be bet
ter if the traffic managers could
have their heads. AS Tor the rest
of our hundred or more railroads,
they run all the way from fair to
wretched.
At one way station in a Southern
state, as / was waiting for a train
that was seven hours late, a teleg
rapher and station agent unbur-
dened himself of his troubles; he
had not had his clothes off to sleep
for more than a week. Who would
wonder that the day before there had
been a smash-up with three lives
lost on that very section? But who
that knows the stock and bond mar
kets could blame the directors and
officers for overworking their men?
New-York tribune., 1917-07-29
MINISTERIAL EXPANSION HALTS WHEN RAILROAD BUILDING STOPS

as uncomfortable to do busir.,.
1t is a truth that the goal Of n
American social institutions ,Io,r
be TO encourage men in ind.,..
dence, including independent Ev.S
hood as the condition precedent A.,
essential to political independer,,
Nevertheless, proclaiming upon "A.
litical platforms and in the p,.,,
and elsewhere freedom and inden.,
dence as watchwords of Amerie,,
ism, we proceed TO enslaye on,
transportation systems, thouy,
transportation Of men and merch,,
disc is civilization and measure, :
fairly.
There are many other aspect, o,
the present railroad situation. |,
weakening, crippling and bleachi,y
these carriers between the seas ther
are dangers that touch our own IA.
tional independence. But no aspect
is more important than this Of on,
having a right opinion respectir,
railroads as business enterprises
Crime is within the province q,
the courts, and sin is within Tia,
of the Church. When our legi,.
latures set out to punish crime BY
retarding business and to preven,
sin by forbidding enterprise, they
usurped the functions of other 50.
cial institutions, and though acting
under the guise Of democracy were
false to its true spirit, which Is
freedom with innocence assumed IN.
til sin is committed and guilt d
proved. But for this unfortunate
excess of zeal for Righteousness, not
unmixed with envy of the successful
and of the lucky, we should now
have far greater and far better rail.
roads, with all their resultant bens.
fits.
New-York tribune., 1917-07-29
Distribution of Railway Mileage in the United States

of peace is a rapidly moving, cease
lessly changing affair, a complex
organism of seemingly limitless
variety. Kinetic, dynamic, we have
tried to make it static and manag-
eble accordingly. This course has
been and is exceedingly foolish.
What with our commissions and
boards, our councils and our other
addenda to courts and legislatures
and executives, we are succeed
ing in making it dangerous as well
New-York tribune., 1917-07-29
Mobizing Stockholders for Defence of Their Properties

under way in the United States. I.
has been pointed out by the associa.
tion that it is on-proft-making, and
that it does not propose to advise on
the buying and selling Of securities.
1t also emphasizes the fact that it
does not contemplate becoming
critical or fault-fnding institution.
Judged on the basis Of such
promise, the undertaking seems
worthy of the support Of all who be-
lieve that working together for
common economic cause and for nut.
ual protection is the one founda-
tion upon which a sound, properly
conducted corporate life can be
maintained.
New-York tribune., 1917-07-29

rectly responsible to the people who
employ them-the stockholders.
The striking feature of the reor-
ganization Of Rock Island is the fact
that it is one Of the remarkable eX-
ceptions to the general rule. Dozens
Of instances of the downfall of cor
Eorations, of the reorganization of
companies with a view to benefting
the few rather than the many,
might be cited. In most of these in
stances the complaints of stock
holders and the general public have
been of little avail.
New-York tribune., 1917-07-29

kets, not to furnish materials for
political speeches, but to earn protits
for investors. This is such an ele-
mentary fact that by one who does
rot know American psychology it
might be taken for granted. Why
is earning a profit the first busi-
ness of a railroad? Because with
out a profit there can be no improve
ments and even no replacements and
repairs.
American economic life in times
New-York tribune., 1917-07-29

others whose legitimate interest in
the properties has been negligible
to have practically unreStrained
sway over the affairs of their COM
panies.
"The logical result Of the continu-
alton Of such a policy of inexcusable
disassociation of the owners and
operators of railroad and public
utility corporations will be either the
ruin of those properties or else gov
ernment ownership"
Corporation management - the
management of any enterprise
must of necessity be concerned most
with discharge of duty to that inter-
est to which it is most directly re-
sponsible. If stockholders care so
little for the maintenance of the Sc
curity of their investment as to
allow other interests than their own
to dominate the affairs of their COM
pany, then they cannot hope to find
corporate management particularly
responsive to their demands.
Any one who owns a single share
CT stock in a corporation is as
yitally interested in the affairs Of
that company as the owner Of the
controlling interest. And the work
ing together Of the small and the
large stockholder for the common in
terest is essential if the greatest
good for the greatest number is to
be served.
| have in mind an old adage
which runs something like this:
"One's best security is the ground
one stands on" The owners of
American corporate securities may
we'll apply the adage to their posi-
ton. The best security for their in
yestments is the ground of organ
lied, cooperative effort. This holds
good as a means of prevention, as
we'll as of salvage.
| have before me leahet issued
by the Investors Protective Asso-
citation of America, which presents
the platform and principles of the
organization. In introducing these it
is pointed out that the movement is
one which proposes to enable stock
holders to safeguard their invest
ments as they have never been able
TO do in the past, because heretofore
they have acted solely as individuals,
The platform proposes a reform of
present conditions so that directors
of corporations shall be elected by
popular vote, rather than by the
rather questionable method now OBJ
tanning. In other words, it is pro-
posed to insist upon the publication
to stockholders of the names of pro-
POSED directors at least thirty days
before election, so that they may be
able intelligently to exercise their
right of voting.
New-York tribune., 1917-07-29
Must Be Equipped
For Maximum Demand

Where are these congestions? T?
Where are the shortages? 1t be-
hooves US to inquire diligently and to
get the truth. In Indiana this spring
q canning concern ordered 10000
tins for its asparagus output. II got
Unexpectedly enough asparagus be-
cause of the wonderful asparagus
weather for $4,000 tins; but the fac
tory could not get the extra 10000
tins made and shipped in time; and
10000 punches of good food went TO
waste after all the labor of raising
and shipping and cooking them had
been expended. The manager says
that the railroads alone are to blame.
It was so with coal in Ohio the
last winter when we were paying
So, 81, $40 and even Sl1 for Goals
that in the previous year had been
in no instance over 81 a ton. The
Goals had been mined, but there were
no cars, and there was no service.
In Western Nebraska good hay
was burned for fuel because of car
shortage. Hay could not be shipped
out, and coal could not be brought in.
In such a situation it Is provoking
TO farmers TO be told to raise more
crops for starving Europe when the
crops spoil upon their hands, or they
cannot get merchandise in return for
them. Right here in Ohio there will
be this summer a very serious short
age Of farm labor to harvest and
bring the crops to market In not a
few instances farm machinery that
might have helped greatly has not
been delivered, though long since or.
esTss
" 10 In tbs Light Of such facts a.
New-York tribune., 1917-07-29
Not Railroads Enough
In Some Sections

There is no remedy in sight; the
only possible remedy that can be
complete and relatively enduring de-
pends upon a radical change OF
American public opinion as to rali-
roads and to railroading.
To begin, we need to see that we
have not enough railroads. We place
before our eyes the statistics OF the
trackage in the several states, and it
does seem generally great. There
are, for example, 12,200 miles of
tracks in the one state of illinois,;
$500 miles in the three small South
ern New England States, and 15,80O
miles in Texas.
Then we reflect upon the vast
mileage of the greater railroad sys-
tens, such as the New York Central,
the Pennsylvania and the Southern
Pacific. ANY one of the ten greater
railroads serves an empire, so to say
Then we go over the total earn
ings, which, as every one knows, run
in some instances beyond $l00,000,-
900 a year, and in the cases Of two
railroads range around twice this
vast sum. Surely, America has
great enough and rich enough rail
roads.
But the trouble is that the stats
ties will not bear analysis and ap-
plieation, without the destruction Of
the simple fancies that American
railroads are all-sufficient, and can
stand even a measure of restriction
and perhaps blood-letting.
Southern New England has, it is
true, only small area, some $4,000
square miles; but it has over 5,000,-
900 people and nearly 200 cities of
over 5000 population each. These
cities and these people get almost
none Of their support and almost
none Of their materials Of manufact-
ure from their own neighborhoods,
and use themselves but a small frac-
tion Of their products. They buy
from and sell TO remote sections, with
long hauls for their freights.
Southern New England has to-day
an insufficient railroad development.
say this with personal knowledge,
for the garden Of my Connecticut
home backs upon the tracks Of the
New Haven Railroad; and half Of
my neighbors own stock in it. |
have been in every locality Of these
three states, and ! know the eondi-
tions. or course, with rates and
schedules regulated as they are, there
is no solution Of the problem.
This section has one mile Of track
for every four square miles Of land.
Only the Pennsylyania-New Jersey
section and Ohio do ss well. But
they have far less mead, since they
rycaues much Of wtst thsy gsasums
On the other hand, the Southern
New-York tribune., 1917-07-29
Why Government Regulation
Often Becomes Necessary

With reference to the recorded in
stances of near-piracy, reckless
financing and short-sighted misman-
sgement, one man whose interest in
railroad securities qualities him to
speak with authority has this to say:
"We have governmental and other
regulation and interference with the
operation Of American railroads and
public utilities because the owners Of
the enterprises have failed in their
duty and allowed fnanciers and
New-York tribune., 1917-07-29
By WILLIAM ESTABRooK CHANCELLOR

By WILLIAM ESTABROOk CHANCELLUh'
Head Of Department Of Economics,
Politics and Sociology, College Of
Wooster.
Ut is commonly said that Amer
lea is confronted by the dilem-
- ma as to its railroads whether
to regulate them or to place them
under government ownership, but 1t
may be that there is third way out
of the present serious difficulties.
With one of the greatest harvests
about to be moved, with vast produc-
tion from factory and mine, and with
troops to be brought to the seaboard
along with their supplies, the rail-
roads never seemed so important to
US as now. That their insufficiency
and inefficiency have had much to DO
with prevailing high prices is scarce
ly debatable.
We have heard so much of the i'm
mense superiority of our own rail
roads to those of Europe that we
have usually refused to consider as
public how they might be made still
better. We know, however, that a
blight has fallen upon railroad devel-
opment in the last few years, and we
have charged this to several causes.
In the last few weeks there has been
granted to our Eastern railroads by
the Interstate Commerce Commission
the right to charge somewhat higher
freight rates; statistlcians disagree
as to whether this will be more than
ID per cent at the most or less than
4 per cent at the least, in the total.
But every economist and every finan-
cier who has given thought to the
situation knows that while the new
rates will help, the increase does not
go to the roots of the situation.
1t would be wholly Improbable
here to go into the historical causes
of the establishment of the Inter
state Commerce Commission, or to
praise or censure its course since its
establishment. The whole American
people is to-day under the discipline
of the facts, which are that new
capital is hard to get for railroad de-
velopment or even for renewal of
equipment, that often there are
shortages of cars at critical times
and points, and that in this emer-
geney of the whole world we need
far better service right here in our
own land, for ourselves and all hu.
manity,
New-York tribune., 1917-07-29

No other road then had even so
manytas 5000 miles of track.
II 8 per cent was then a fair
return for money it is plain that
in 1913 capital valuation Of $780,
600 per mile was fair for Lacka-
wanna, and of 100000 per mile
for Rock Island. othsr things being
equal. But In point Of truth, N
New-York tribune., 1917-07-29
Stockholders Should
Accept Responsibilities

The American public and, in fact,
tie people of every free nation are,
however, gradually awakening to a
realization that the blessings of de-
mocraey were never intended for en-
Joyment by people who were unpre-
pared to accept the responsibilities
attaching to citizenship.
A democratic nation that denies
responsibilities will obtain from
government just what it deserves. If
voters fail to cooperate for their own
protection and vote to that end they
will fail to obtain representative
government. If stockholders lose
sight of the responsibilities that are
theirs as owners Of the corporations
in which they have placed their in
vestments then they will find that
the direction Of their companies will
be mainly for the benefit of those
who direct and control. At least,
such a condition is probable, if it
does not always obtain.
The Investors Protective Associa-
ton of America was formed for the
purpose of bringing about a closer
association between those active in
the operation of property and those
whose money made the operation
possible. Organization has been the
open sesame to development. 1t has
enabled lawyers, physicians, farm
ers, laboring men and public spir-
tied men and women to accomplish
things for their benefit otherwise inn
possible.
Some fault has from time to time
been found with the Interstate Com
merce Commission on the ground
that it has tended to tie the hands of
those responsible for making the
railroads of the country pay rea-
sonable return on the investment Of
the shareholders and bondholderS.
This may be true. II would not profit
az this time to enter into a discus
sion of the merits of the contention.
But there is one thing to be said
which is of vital import to share
holder, bondholder and railroad di-
rector and executive officer. There
have been cases of gross misman-
agement of railroads. There have
been cases of breach Of trust and
manipulation of railroad property
and securities. And those abuses
have had direct bearing upon the es-
tablishment of such supervisory
bodies as the Interstate Commerce
Commission.
New-York tribune., 1917-07-29
schedules. This does away with the
need Of the thousand clerks.

schedules. This does away with the
need Of the thousand clerks.
The notion prevailing in some
quarters that every economic activity
must be paralleled and matched by
some political activity is one of the
most pernicious in history. 1t has
resulted in leaving the great State
of Missouri with more square miles
Of land than all New England, and
with ten times as much good land,
provided with only as many miles
Of trackage per square mile as upper
New England, and in leaving North
ern Maine a wilderness, at that.
Hostile Legislation Not
Wholly to Blame
No one who remembers the won
ssrful sdyansss mAds svssy yssr for
decades after the Civil Wa. In cur