The Birmingham age-herald., 1923-10-25
RAILROADS MUST BE EQUAL TO NEED
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(COntinued From Page One) penses. taxes and other charges and leave a fair margin of profit for the investors who have furnished these and the other funds that have been expended upon railway expansion" Credit Must Be Stabilized.
 If the railroads are to carry on their ambitious program for the ex- pansion of their facilities to meet the nations requirements, if they are to continue to make heavy purchases of materials and supplies for use in the operation of the railroads, if they are to pay their employees good wages and so contribute to the pros- perity of all other industries. includ- ing farming. railway credit must be stabilized and maintained"
 MT. Markham declared that fair treatment of the present generation of security hClders is needed to put railway credit on sound basis and assure the future security of the railway industry.
 'The securities of the railroads have changed hands a good many times since the lines were first built" he said. "The present gene-
  moved from the generation that fur nished the money with which the lxes, were first constructed. There may have been abuses practiced good many years ago. but whether there were or net does not concern us now. That water has gone over the dam.'
 "Whatever animus thes public may fee. properly or improperly. against the holders of railway securities 50 years or more ago, the fact remains that the investors we are dealing with now are innocent of any wrongs that may have been committed then"
 Mr. Markham declared that the railroads must spend money in Cr- der to save money" and illustrated this point with discussion of the savings that have been effected on the illinois Central system by reason of expenditures upon improvements and extension since he assumed the presidency of the road in January, 1911.
 "The number of tons of freight carried enc mile on the Illinois Gen. tral system in 1922" MT. Markham said, twas 97 per cent greater than in 1910. However, this 97 per cent increase in service to the public was performed with an increase or only per cent in freight train miles op- erated The number of tons of freight
  per cent from 1910 to 1922.
 If the average trainload had been the same in 1922 as 1t was in 1910. there would have been an increase in freight train miles of s4 per cent, instead of only per cent. This would have meant that the actual cost of train operation, such as wages. fuel. lubricants and other supplies, would have been S21,341,- s52.25 greater than they actually were.
 We'll Planned Expenditures.
 How was this substantial saving effected? Simply by well planned expenditures upon improvements and extensions. Grades have been re- be handled by individual locomotives. Light locomotives have been replaced with heavier ones having greater tractive power. Our terminal facil- ities have been improved.
 .In the 12 years from 1910 to 1922 the Illinois Central system spent $1S7,531,239 upon such extensions and improvements to its property. In order to finance this expansion, our funded debt necessarily had to be in creased. In every case the question of the saving that could be made was carefully worked out, and money was spent where it would do the most good. As matter of fact, the increase in the interest on our funded debt in 1922 over 1910 was only $5.547,000. Subtracting this sum from the saving of $21.341, ,652.25 leaves a net saving of $15,794,652.25.
 "Ths maintenance of railway credit is necessary in order that the railroads will be able to carry cut this kind of a program in tho fu- ture. There are very great possibil- tiles of saving money by judicious expenditures, as this example shows. If the railroads are to get the money to spend they must be able to offer investors a reasonable return and the security that the public will give the railroads fair treatment"
 O O O Other visitors Present.
 Several ether prominent railroad and steamship executives were at the speakers' table, including w. A. Win