Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-06-10

of railroads. A great deal of talk
was made about watered stock. 1t
was said that the railroads did not
have anything in them as valued.
increased SO that now substance is
greater than their outstanding value.
If the railroads of the country de-
sire to be entirely selfish they can sit
back at let nature take it's course. II
the government took over the rail-
roads, the security holders would get
more out Of it than if they went out
in the market and sold. We have
got to have railroad transportation.
Ii private ownership will not conduct
it as it should be we will insist that
the government do it.
In England there is highly devel-
oped railroad system. 1t is highly
adequate for their trades. Their sys-
tenn is adequate to the present and
the future. Their methods will in
sure best operating of engineering
facilities.
In the United States the railroads
have been built under various condi-
tons. For some conditions we would
like to punish someone. We have
omitted consideration of the fact, the
real fact, not how to take care of
existing railroads, but how are you
going to build the new tracks, the
new cars? Your business is going to
M tn
try we have very little double tracks ?
Vest Of Pittsburg they are few. Be
yond the Missouri river to the Pacific
coast there are only two double
tracks. In Oregon, that great state,
one single trunk line covers that
whole state. There are great railroads
piercing great sections not yet thick
ly populated. Coming along on the
road here in your State l saw excel
rebuilt. How is that money to be OBJ
tanned? 1t is not so much the prob
lem OF the railroad for they can stand
still. 1t really affects the citizens
Your mayor said Maine is isolated.
That is not a unique situation. Penn
sylvania would be isolate but it has
its railroads. 1t must be able to de-
mand adequate transportation.
How to Get Money
The real test to apply to any eff
fort is this: BY what method can
we obtain the best possible trans
portation at the best possible lowest
cost? Up to a few years ago there
were relatively few restrictions upon
the freedom of the railroads. 1t was
found wiser to adopt regulatory
methods to stop certain abuse. De-
spite the abuses, we built up a rail-
road system, paid bigger money to
the engineers of it, paid the greatest
amount of tax according to the in
vestment of any organization in the
world, provided the lowest freight
and passenger rates in the world Do
we want the government to provide
against distrust? We want to pro-
ceed upon the theory that the great
majority of the business men are
regulation? The commission ap-
pointed by the government felt the
need of business discretion against
men who know the problems. 1t is
the application of business discretion
of group against group of men
who have devoted their lives to the
study of the work.
In 1906 there was little railroad
regulation. In that year the law
gave the commission, more espec-
tally the inter commerce commits
sion, control for fixing railroad rates.
Cost of the railroad operations rap
idly began to increase. There was a
demand for better conveniences, new
stations more safety devices 1t
meant better grade for the same
money. The railroads made efforts
in that time, 190G-1917. to increase
the rates. The cost was going up:
the rates were the same The fat
on the railroad body was steadily be-
ing depleted. Now they are asking
why don't the railroads cut down
their rates? Every other business is
taking their medicine. But last year
the railroads made no money
There was six billions paid in rev.
enue with 81 millions left to pay all
charges against a 20 billion capital
invested. From 19O6-1917 the rail-
nesses were, to accumulate fat to
carry them over the lean years of
depression. There were practically
no means OF carrying over. AS soon
as operation rates come down,
freight rates will come down. 1t is
not a matter left to the disposition