Capital journal. (Salem, Or.) 1919-1980, 1921-08-10
The National Beggm

a 110 4 NO|IIOHEANE A>CSoS9NNS
broadside entitled Public Opinion is published ever
little while and to all the newspapers of the country b.
the Association Of Railway Executives 1t contains matte
designed to influence the public favoraby in behalf of the
railways effort to federal financial aid and is par
Of an extensive propaganda to secure this result.
The railways have become the most confirmed beggers in
the country and loud and in their appeals to
help the but deserving railroads out of the slough Of
financial dependency, having apparently lost all initiative
and resource Of their
The blame for the railways plight is placed upon the
government for its operation during the war, which
serted to be the of all ills The fact of the matter is
function satisfactorily before the government took their
operation For several years previously the traffic lines
had been systematically mked" for dividends and money
that should have into improvements and additional
equipment diverted to stockholders, and the rolling
stock allowed to depreciate
During the war, the railways managed largely by
their officials the federal being directed to the
elimination OF waste and costly Implications by parallel lines
And in nearly all operations there systematic sabotage
designed to dscre federal operation The tranmen oafed
the job because Uncle Sam paid the bill and the operating
officials exhibited the spirit to increase the and
make the service unsatisfactory that public opinion would
protest continuation of government control.
Since the the railways have secured increases in rates
already eOrbitant and aided materially in diminishing
traffic They have cut wages without corresponding cut
in rates and centerng all their efforts to
from the instead of from their other
enterprise must. Their everlasting cry is for more.
Most of the railways ills of their creation They
have all been overcaptazed and billions of watered stock
sold public proceeds pocketed by the fnancer
Great systems like the New Haven and Rock Island have
been deliberately wrecked to be exploited and refnanced
And upon all these wildcat operations the public is asked to
pay dividends in the way of traffic tolls.
Even today the railways asking returns, not upon
their actual cost investment but upon the unearned
increment brought about by the increased population of city
and country terminal valued not at what it cost 30
ago. but what it would cost to replace after apprec
alton caused by doubling and Thrilling of population and
property valuations.
Economic conditions rapidly changing. The develop
ment of motor traffic. the of good roads, the Panama
canal the consequent increase in and coaswise
traffic, are all important factors affecting the railway
situation yet the railways helpless to meet competition
hat is bound to increase with the years. and outside of beg
public money and raising rates and propaganda to
hese ends have constructive suggestions to offer
The for this is that railways are no longer run
oy the forcefu aggressive resourcefu who built and
operated them They from long distance by bank
only interest is dividends who nothing about
he development and needs of the communities served and
vision outside Of getting the money Railway oper
ltng officials the highest little than over
yrown office boys who the errand of Wall street banks
and suggestions from the on the job
eceve little consderaonand result the bankers are
making out of it.
Survival of the fttest is memorable economic law
Business must adjust itself to conditions and meet compet
ion or 90 by the board There apparently effort made
Dy the railways do either and heplessy and mpoenty
hey are drifting into bankruptcy The master minds have
passed away and judged by results control centers in
ncompetents for the test of competency is the mastering
If adversity.