Capital journal. (Salem, Or.) 1919-1980, 1921-04-11
Proposed Sale of the Oregon Electric

Receivership and sale of the oregon Electfc w
is being considered by the the Hill system because
the railroad has failed pay dividends the past few years
This failure to make money placed upon unreguated motor
truck and automobile competition and increased coStS o.
operation.
Branch railroads and trolley lines all the country are
finding their business demorazed by motor competition
and they emitting loud walls OF distress Forceo 10
maintain rghtsofway and operate upon regular schedules
under and federal regulation they are in poor position
to meet the ybynght irresponsible tney which on shoe
string capitalization public highways, securing the
traffic.
It is not only the trolley lines that face deficits in these
piping times of prosperity but the main line trunk railroads
as we'll So if lack of dividends is to force the sacrifice OF
rail properties by owners there will be lot OF railroads Tor
sale shortly.
The fact of the matter that transportation under
going revolution The motor vehicles have to stay
result of paved highways This form OF transportation
still in the development stage but will in time be stabilized
by regulation 1t begins to look if the main use of the
short line railroads and trolley systems will be as feeders
and terminals for trunk lines.
The railroads including trolley lines have suffered from
initiation Millions of profit have been taken by pro-
moters expoers and fnancers especially out of electric
lines and they due for liquidation which the govern
ment has aided materially in staving off.
It has become the practice in recent years. when railroad
got into trouble to pyramid its debts by increasing capital
zaon under the gse of reorganization and consultations
and get in fresh capital but this profitable form OF nan
ceerng has also peered out and unless Uncle Sam %
the rescue there shortly be genuine deation and
profitable properties have to.
Since the railroads passed into the hands of their
under the EschC Cummings BILL there has been paid to th
railroads. out of the public treasury billion dollars
for which the United States treasury had to borrow the
money and pay interest upon which led Senator La Toilette
to make the following remarks concerning railroad manage
ment in the senate:
railroads of this The nancer Wall Street running
railroad management of the passed of the hands men
railroads balancing against transportation
The management % Of the railroads passed into the hands han of
roads of the United States have been capable of
the representatives of financial houses by the
Railroad management has passed into the hands Of few
any Of service but solely with the idea Of returns and those
%e GoGd on capitalization and book value and not upon
ment They have turned their backs that
actual investment to vote for
the investment,
To return to the Oregon Electric the contemplated sale
indicates plainly enough that Wall Street running the rail
road and that the old empire builder" James Hill who
built it, has passed awaywith to succeed him. 1t was
s delight to build railroads into ndeveoped regions and
then aid in their development to secure traffic to s
tain the railroad Hill had the vision Wall street financers
lack it.
Hill made railroads through deserts pay He brought idle
eastern capital into touch with western opportunity He
helped finance mines irrigation lumber plants paper mills
and various factories to develop latent resources He pro
noted industry stimulated stock-rasing improved farm
ng-and all made traffic for his railroad He helped build
up towns and Cities and materially aided reaizez future
his vision glimpsed
How easy it would be for Hill to make the Oregon
Electric pay! Running through well settled fertile region
capable of supporting ten times its population comprising
the greatest fruit region of the northwest with wealth of
undeVeoped and latent opportunities tanning one
of the worlds largest timber belts with greater undeveoped
water power than Niagara avaiabeye the Hill system
does nothing to create stimulate traffic or deveop the
country tie its business it, is intent only unon tha
pennies of the travelling public and when the tnevs fitch
some of them, ready to quit and get out
I Rags, various, gathered every-l
Cleanup An o., where. aD,1s, u.,, ..,
White Flag Collection Al, -, .,,