Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-12-22

MAkE APPERL III
WHOLE COUNTRY.
SPECIAL CORRESPONDENCE TO MORNING JOURNAL
New York. Dec 21-Thomas De-
Witt Cuylen chairman or the Asso-
citation of Railway Executives an
nounced TODAY that the fundamental
facts of the railroad situation would
hs presented to the country by means
of national advertising. The opening
statement. to appear in the daily
newspapers during the next few DAYS
IS signed by nearly 100 executives of
the principal railroads 1t will be
followed by a series of advertisements
in the daily and weekly newspapers
and in other publications.
The unmista kable verdict of public
opinion" said Mr.. Cuyler. in making
the announcement of the plan of the
national industry shall continue to be
conducted by private companies un-
der strict public regulation. Modern
railroad companies, Of course. are not
private affairs. Their capital is sub
eorihed by vast number of individual
investors. as we'll as by Institutions
such as savings banks and life insur-
ance COMPANIES. holding the savings
of millions of people. and they are
subject to the most minute regulation.
by the public authorities. In Europe
such CORPORATIONS are called public
companies and this name more ac-
curatelv describes them.
with the return of the railroads
to the control of their owning COM
panies. after two wears of war service
under government operation--a period
l,.N,e I'll i
nancial ehange-the railroad mana
gers will have many difficult prob
lens to face. But the most important
problem-the one most affecting the
tracing to the railroad business a
flow of new capital. without WHICH
the railroads cannot grow and with
out which the country cannot grow.
Demands Increasing.
1.-The whole railroad problem Sits
down 10 THIS fundamental fact that in
a growing country like ours with the
Transportation demands increasing
much faster, than the population,
there must be a continuous invest,
ment of new funds in the expansion
of railroad facilities
Railroad freight traffic reached
200 billion tom miles in 1906; it rose
to SEQ billion in 1913. and last year
it crossed the 400 billion mark. The
railroads are now hauling five times
as much traffic as they did thirty
years ago. And traffic Is going TOT
keep right on growing. because this
country is going to keep right onl
growing.
ITO keen pace with this increase in
business the railroads before the war
We're eXpending about $5O0.0O0.O00 O.,
year of new capital for expansion.
That. as we all know. was not enough. |
But railroad earnings were not large
enough TO attract the funds of in
yestors in. greater amount, In fact
ffNtt In 10 bot 60 F1nNay
railroad stock has vanished. Nearly
all the new capital had to be obtain
ed through the sale of mortgage
bonds and short term notes. The COM
number of their creditors because
they could not attract more share
Government Fails.
During the period of war control
the government has been unable to
keep up normal expenditures for rail-
road upbuilding. Last year the labor
and materials had to be devoted TO
the prosecution of the war, and this
year the government has not had the
money to spend. So with the return
of the roads to their owners. the
arrangements will be faced with the
necessity of very large capital eX-
penditures for betterments and i'm
provements. And this work will have
to be done at a cost for labor and ma
fore the war, New capital expendi-
lures at the rate of 100000 a year
would therefore seem to be the maxi
mum required if the railroads are to
be enabled TO handle the growing
traffic of the country
ITO attract the new capital for up |
building the railroads, the transporta
ton industry must be able to earn a
fair return on this capital. Adequate |
earnings are only possible with ade- |
quate rates for service. The rates
now are admittedly too low to meet |
the greatly increased expenses of ope-
ration, and leave a fair margin for |
capital"
In the opening statement to the !
public, signed by the executive of
nearly all the principal railroad COM |
panies, the Association Of Railway |
1T is the declared purpose of the |
United States government to restore |
the railroads at an early date to the |
control of their owners. I
The Association of Railway EX-
ecutives represents those upon whom
at that time responsibility will again
rest for the prompt and successful
movement of the countrys commerce,
Those constituting this association
are keenly conscious of their account
ability to the public.
They have accordingly determined
to present as fully as they can, tho
facts and considerations
which they themselves must face in
their efforts to provide satisfactory
service
1T is hoped to engage the inter-
est of the whole American people,
whose welfare is so vitality dependent
upon adequate transportation.
THE country can grow only as the
grow. The railroad prob
lem must be solved-and solved right
ly and soon--if our country is to pros
per.
1T is to promote that prosperity
and in the interest of the
whole people--that railroad execu-
lives will present to the public the
situation as they see it."