The Carlisle independent., 1920-01-22

tlOn prime necessity.
1t is easy to agree with Mr..
Fayant'S statement that ''the
very life depends on transporta-
ton, and the chief concern of the
public in the railroad problem
is that transportation should be
adequate and efficient, since all
other phases of the problem are
secondary" The student of
the question is aware that in no
other great country of the world
is transportation furnished at so
low a cost, and it is doubtful
whether the agitation of some of
the so-called radicals" is deceiv-
ing many people, even though
these people urge that the cost
of living is likely to be increas-
ed through Congress fixing a
sound program for the railroads
under private management. 1T
is to the credit of the Nation that
the Give and let live" principle is
coming to be recognized every
where in American industry and
commerce. This has been re-
Elected in Congress where stren-
uouS attempts have been made
to frame railroad legislation to
protect the men at work on the
lines, as we'll as investors of the
country who have put their saw
ings in railroad securities, and
the public whose interests are in
every way identified with sue
cessful railroad operation.
Touching the point of produc-
ton, and compensation to the
railroads Mr.. Fayant says that
throughout the country,
throughout the world, there is
an appeal for greater production
The doctors of all economic and
political schools have given the
prescription for our present in
dustrial ills, and the prescrip-
ton is: Work more, produce
more, save more" But produc-
ton in country like ours is alb
solutely dependent upon the ade-
quacy of transportation. We
can not increase our production
unless we increase our railroad
facilities, and we cannot increase
our railroad facilities unless at
tract the capital for this work.
And we can't attract new capt.
tai unless railroads are allowed |
to charge a fair price for their
service they render to the pub
lic."
" Watered Railroad Stock"
Samuel Rea, the head of the
Pennsylvania Railroad System,
which ranks as the biggest trans
portation system in the world,
ed the popular delusion as to wa
tered railroad stock. He says
that it is conservative to state
that the actual cash investment |
in the railroads exceeds, by at
least $3,000,000,000, the issued
bonds and stock. He points to
the Pennsylvania System, which |
has put more than $500,000,000
in the upbuilding of its lines in
excess of the securities that have
been issued. That, he says, is
the result of seventy-five years
of prudent financing. Mr.. Rea
also points to the fact that more
than one-third of the capital |
stock of the railroads of the
country, or $3,250,000,00O does
not pay any dividends at all and
that in addition there is a con-
siderable amount of bonds upon |
which no interest is being paid. |
Since 1907 the railroad ac-
counts have been very thoroughly |
scrutinized by the Interstate
Commerce Commission and dur
ing this time S6,500,000,000 of |
new capital has been devoted to
the development and extension
Of the, railroads of the country
No one, Mr.. Rea says, can have
any doubt as to the actual invest
ment Of this cash, dollar for dol
lar. Any doubt as to the assets
behind railroad securities, Mr..
Rea points out, must refer to the
S13, 900, 100000 of property in
yestment on the books of the
companies in 1907. But that |
sum represents an average per
mile of $39,730. A mile of track
he says, requires right of way,
grading, track, switches, signals,
bridges, ETC., but the invetment |