The evening herald. (Klamath Falls, Or.) 1906-1942, 1920-11-09
PROSPECTS FOR
BUILDING Of
NlTR6N 'CUT0FF i

prise, the Eugene Guard takes q
fling at Southern Pacific for not ut
once building the Natron- klamath
cut-off. now that II IL permitted to
earn up to So Tor its stockholders.
II ridiculcs tho company for alleged
lack OF enterprise, In not having built
extensions In Western Oregon,
Aside from the fact that the South
ern Pacific has consistently built eN-
tensions as we'll as improved It's lines
In Oregon ever since tho time HART
man acquired control, II Is uurcason-
able to expect It's owners to cnthusc
over advancing new capital for cN-
tensions when they are limited to
6ec return and can obtain much
higher rates OF interest by invest
ing In non-railroad securities,
when there was neither limit or
earnings nor q so-calrtd guarantee
that rates would be maintained, the
Southern Pacific constructed its clec,
tric lines In Oregon, the SiS,OOO.OOO
Coos Hay line and many other lesser
extensions. These lines promised re-
turns both from local traffic and as
feeders. The Natron cutoff was start
cd at this time. Only the increase OF
restriction at the same time that
times were a bit dull prevented that
completion long ago. while the pre-
sent situation o. the railroad Is an
Improvement. owing to the RuthoriEa'
ton to grant rates that may earn
up to SIS, II Is hard TO see where
there is any Incentive to take money
from other more attractive invest
ments and put II into railroad exten-
sion.
II anything like a 60 return
could be expected on the millions
necessary to complete the cutoff,
there might bc a better prospect. II
is hard to see how these extra mil
lions would yield anything like this
return for years. The main traffic
TO be carried over the cutoff would
be part OF the through business now
carried over the main line by way
OF Ashland and the SIsklyous. The
cutoff would be on an easier grade.
so there might be some small saving
on such through freight as could be
hauled over IL. but this saving for
many years could not yield anything
like &c on the capital cost OF the
cutoff. ..
Lumber business would undoubt-
ediy develop along the cutoff. but
not to the extent that ordinarily
might be supposed. The extensions
out from Eugene and klamath Falls
now completed penetrate a timber
| territory. Between the termlni Of
these extensions. the forest area IL
practically all within national re-
serves, which to a great extent makes
II unattrsctiye to the iumbermen:
Part Is within the klamath Indian
reservation. and were this timber
opened up on anything like n reason
able basis, there might be extensive
sawmill development yNere. but leg
islation by congress Is required 10
make II practically available.
With the cutoff uncompletcd, the
rates on traffic out from Eugene and
klamath Falls. With the cutoff COM
pleted, n large part Of this freight
would take through rates. as II
would be on what amounts TO a main
line. Rate regulation would make this
essential. and by making II neees-
sary depriyes the company somewhat
OF an incentive to connect up the
two ends.
The hope for construction OF the
klamath cutoff is In a general In
crease OF business here in Oregon. 30
! that added facilities must be con-
| structed to handle II. Under press
ure OF expanding business, the own
ers OF the company may be willing
to provide capital for the purpose
even II that capital may earn only
co return. Something depends prob
ably upon the good will Of those
same owners towards Oregon. over
regulations. nagging It's officials. OPP
pressiye legislation and nas<y news
paper criticism do not tend 20 es-
tabllsh that good will. The owners
and officials OF the railroads are hu-
man and are no more susceptible OF
being enticed by vinegar than are any
OF the rest Of us.
In proportion as public sentiment
in Oregon helps to make II possible
for railroad stockholders To make
more money In this state will the in
yestlng public provide the funds
needed for Just such extensions as
the Natron cutoff. Probably not un-
I'll federal legislation permits rail-
road owners 10 reap more than SO
return may much or anything In the
way OF railroad extension be expect
/ ed IN Oregon. The press OF the state,
instead OF infiaming public prejudice
against the railroads. should rather
foster policy OF good will towards
them In proportion as II is deserved,
so that such legislation and reguia-
tion as may be imposed
with permit an adequate re-
turn and thus make possible some Of
the extensions Oregon imperatively