The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-05-12
DIXIE PITTSBURGH
WANTS ROADS AND
WIRES GIVEN UP
Lawrence Visits Birmingham
and Finds Sentiment of
Business Men Strong for
End Of Government Control
BY DAVID LAWRENCE.
THE News Selmltar's Special Core.
spondent.)

BIRMINGHAM, Ala, May f2.-This
city has often been called the Pitts
bursh Of the South because Of its great
iron and steel industries, and in many
respects it thinks like Pittsburgh. If
you want to start something when any
group of business men here happen
TO be together, say you are in favor
Of keeping the telegraph and telephone
IN the hands Of the government, or
else advocate government ownership Of
railroads. The sentiment Is almost
sort.
Senator Oscar Underwood, of Ala
nama who is one OF the most COM
scientious and able men who ever went
to congress. is a member of the senate
interstate committee, which
IS going TO handle the railroad problem
in the next congress. Although he will
be OF the minority party, his views
carry weight on both sides OF the po-
litical aisle. He has been testing out
sentiment, not only in Alabama, but
In the South, and has come to the con.
clusion that the people want the rail-
roads restored to private hands Just
as rapidly as they can be. But, as
the Alabama senator pointed out 10
the convention of the Southern Whole
Sohp OAVNVAS haoOIldNlOn, TIE TdtIOdQS,
when taken over, were hospital cases."
must be carried back ION stretch
ers." -
I'm a few days" he said, 1--WE are
going to the operating room; the pa
tent on the table will be the railroads.
II we fail in the operation it will be
reflected In your, cash registers. n
we succeed. it will be shown in III
creased prosperity. ~
Two Big Problems.
you ought to get freight rates
cheaper than you are getting them
now. There are two things to be con
sldered; Adequate facilities of trans
portation must be provided, and the
next problem is the maintenance and
operation of the roads.
i want o to visualize how great
are the problems. One-twelfth OF all
the property of the United States is
invested in the railroads of America.
There are 260, 900 miles Of single tracks.
This means, in the continental United
states you have one-half OF the rail-
road mileage Of the world. The move
ment OF freight on these railroads is
more than twice that Of the traffic
n transportation of n other two
nations in the world. The average can
ital Of the railroads in America is $751;
900 a mile. We think that's high, and
IN some places 1t is. There's probably
some watered stock, but not nearly
as much as you might think by read
ing certain journals. Yet the average
capitalization of the railroads of other
countries of the world Is twice that
here in the United States.
Easter railroads. l found, average
5.21 per cent Of their capital; Southern
railroads, .6.36 per cent, That doesn't
look SO bad, but the trouble is that's
an average.
II cite two instances. I found the
Chicago & Northwestern earned 6.i3
per cant and the Chicago & Great
Western LII per cent. Now they're
doing business in the same TERRITORY
and serving the ann business, inter-
ests. One Of these railroads IL lnr4ttv
near at deaths door. The other IL
strong and healthy and prepared to go
on serving the public interests. Now
these rates must be uniform. You can
say You can finance the Chicago &
Great Western by raising the rates,
but, the rates being uniform. sthen the
Chicago e. Northwestern rates will be
raised, too. Now how are you going
to take care OF the sick patient with
out letting one get a lot of the reve-
nues to which 1t is not entitled. When
the rates are raised the business men
in that territory suffer accordingly,
I'VE felt we couldn't have won the
war without taking over the railroads,
and we won the war. Now we've got
to pay the price, whatever it is. Rec
ords show an increased cost to ship
pers and packers of $500, 900, 900, vet
there Nas a deficit Of 5000, 900, 900. Ver-
-. IA l.