RAILROAD MAGNATES EXCITED
Recent Legislation Brings Forth
Dire Prophesies.
Tho clamor of tho interstate com
merco commission for a valuation of
railroads as a basis for making rates,
has created consternation In railroad
circles and prominent railroad officials
and Wall street financiers, notably .T.
P. Morgan, havo visited "Washington
and the president. The Harrinmn rev
clntions as made in his testimony be
fore the commission ,aro said to havo
Htarted the agitation anew. A railroad
rate based on hto actual value of the
properties and the earnings and bona
fide Investments is a most Btaggqrlng
proposition. Statisticians already aro
at work preparing estimates of tho
cost to the government and tho rail
roads of making a valuation of tho
physical properties. Three states
havo made tho valuations. They are
Michigan, Wisconsin and Texas. Tho
cost to states for making this valua
tlon was approximately $12 a mile. It
was asserted in a speech made by La
Follette in the Senato that the total
cost both to tho government and tho
railroad companies for making this
valuation was not to exceed $20 a mile
or a total cost to tho government of
about 5 million dollars. It Is tho leav
en of actual railroad valuation which
is now working so continuously that
is producing the railroad dread so far
as the national government Is con
cerned. Tho trouble in the various
states is a entirely different story. Tho
railroad stocks for one reason and an
other have gone tumbling of late, but
that might not happen, especially to
some of the granger stocks, if the ac
tual values of tho roads could be made
la basis for rates. It Is In connection
wlth this possibility that the revcla
itlon of Mr. Harriman must bo consid-erpd.
. A. B. Stlcknoy, president of the Chi
cago Great Western railroad, in an in
terview at Washington, discussing tho
Tallroad situation, said:
"The people are now laying the
foundation firm and strong for a tre
mendous panic."
Tho great unrest in the financial
world, President Stlckney said, is not
duo to the policy of President Roose
velt, but is brought about by "hostllo
legislation by the various state legis
latures." Mr. Stlckney contended that
the only solution of the railroad prob
lem Is to grant all tho power to regu
late the roads to tho federal govern
ment. "I am in favor," ho said, "of all that
President Roosevelt by his public acts
stands for up to this time in respect to
the regulation of railroads and their
rates."
J. J. Hill, who hasn't talked for sev
eral days, while Harriman has been
(in the spot-light, testified before the
ISundberg legislative committee of the
blinnesota legislature .it Minneapolis,
nnd declared without qualification that
he would be only too willing to have
the United States government take
over his road. Ho stated further that
If the government should go into the
railroad business, It would be nothing
short of a lottery and the country
would, an a matter of fact, have an
"elephant" on its hands.
"Then," said he, "the government
would be obliged to enrage In another
lottery to get rid of tho elephant."
"Why do you say that?" asked
James Manahan, attornoy for tho com
mittee which Is trying to ascertain tho
cost of tho railroads In the state.
"I make the assortion because It is
so," said Mr. Hill. "If the government
had charge of all tho railroads In the
country Congress would bo kept busy
making appropriations night and day
and tho districts with poor representa
tion and sparso population would bo
left in tho lurch. This would mean
that tho districts In (juostion would go
to seed as far as tho railroads were
concorned, and that tho railroads
would get rusty, figuratively speaking,
and bocomo less and"les valuable."
Mr. Monahnn asked Mr. Hill what it
would cost the government to secure
control of tho Great Northern. Tho
witness replied that it would cost up
wards of $40,000 a mile to "repro
duce" tho Great Northern, not count
ing expensive terminals, docks and
other property. Counting all of the
property, he said ft would be ahout
160,000 a mile "to roproduce" the road.
Mr. Hill used the, word "roproduco"
iguardodly, not admitting that ho
would .sell his road for only $0,000 or
if 60,000 a mile.-
Stuyvesant Fish, whom'.E. H,- Har;
the Illinois Central xattway, fcs
opealy alMea wRh the Qwk
interests, which, ea tao lo'oTIL t
dicatas that there 1 at leant' ooeMO
way system which Harriman cannat
take over right away. At a xneelfa
of the stockholders of tho MtawmrfrU
ciflc In St .Louis yesterday Mr. Fish
was elected a member of the board ol
directors. It has been hinted recently
that tho Missouri Pacific is eager tc
mako some movo to indicate a willing'
ucss to accedo somownat to publst
opinion. Thero havo been complaint!
of an inclination on tho part of the
Gould lino to evade tho law and it li
hinted in railroad circles that th
election of Mr. Fish to tho dlrectorat
is calculated to inspire public confi
dence and get into tho good graces ol
the administration.
A representative of the Associntei
Press at Blnghamton, N. Y., aske
William J. Bryan on his arrlv.il whal
offect the Harriman and other inves
tigations would have on tho agitation
in favor of government ownership oi
management of railroads. He replied:
"The most interesting phase of tin
situation is the refusal of the people
to lend money freely to the railroads.
Tho railroad managers say that this li
due to hostile legislation, but this Is 8
mistake. There hns been no hostile
legislation of sufficient severity to im
pair tho real value of railroad securi
ties, whore the railroads havo been
honestly conducted upon an honest
capitalization.
"If the Investing public Is alarmed,
It Is because the railroad managers, in
a vain effort to terrorize tho legisla
tures, have carried matters too far.
"It any other answer is needed foi
tho hesitancy on the part of investors,
the investigations furnish it, for the
Inquiries have shown to what extent
railroad stocks have been watered.
But what is the alternative? Must the
government refuse to investigate rot
ten management for fear the misman
aged railroad no longer will be able
to fool tho public Into buying Inflated
securities? Tho sooner the railroads
are put on an honest basis the more
secure will the investing public feel."
Discuss Harrlman's views
Railroad men in Chicago do not
agree entirely with E. H. Harriraan's
views regarding the physical aspect of
the railroad of the future Asked to
express his views regarding the future
railroad, B. L. Winchell, president of
the Rock Island, said:
"It would seem to me that if all the
railroads In the United States should
be changed at once into six-foot gauge
roads we would be troubled with oven
a greater car and power shortage than
exists at present. The first six-foot
gauge road would find itself in a pret
ty unfortunate predicament. How do
you think It would get its traffic to
other roads and tho traffic of connect
ing lines to Its own rails?
"There are, however, many things
to be said In favor of a broader gauge.
Thero is tho element of greater safety;
it would be possible to use bigger
cars, and with bigger engines we could
haul greater loads. If, however, we
are to seriously face changiag the
gauge of our railroads I do not soo
where tho money Is to come from.
"In fact, there would not bo money
enough in the country. Every bridge
would have to be rebuilt and every
cor we now have would bo useless.
The 5 billion dollars which James J.
Hill says It is necessary to spend in
the next five years accomplishing the
transportation necessary of theetaoln
transportation necessities of the coun
try would bo an infinitesimal amount
if we are to adopt a six-foot gauge."
Daniel Wlllard, vice president of tha
Burlington road, said:
"I do not care to criticise Mr. Harri
man. Regarding electricity I believe
we all think that at some future time
It will supplant steam as a motive
power. I hardly believe our railroads
will havo to be rebuilt in the next ten
years."
"In general, I agree with Mr. Har
riman," declared C. A. Goodnow, gen
eral manager of the Alton road, "ex
cept that I do not look for a broader
gauge. The changing of tho gauge
would involve, I believe, too much In
tho way of reconstruction of structures,
tho gradual substitution of electricity
for steam, but am of the opinion that
this will take much longer than ton
years."
Even tho burglar would have aomo
trouble In breaking a deadlock.
Driveways Coachman's; habits.
That author seems wisest 'who "tells
ub tho thines with which we agree.
t tHC BUSINItB MAN.
President Roosevelt's Opinion of
Him as Expressed In His
Latest Book.
t 4 fr 4 4 4 ! 4 4
The American business man is of a
peculiar typo, and probably tho qual
ities of energy, daring and resourceful
ness which havo given him his prom
inence in tho International industrial
world find their highest development
in tho west. It Is tho merest truism
t say that In the modern world Indus
trialism is the great factor In tho
growth of nations. Material prosper
ity Is tho foundation upon which ovory
mighty national structure must bo
built.
Of courso thero must bo moro than
this. Thero must be a high moral
purpose. A life of tho spirit which
finds its exprosslon In many differ
ent ways but unless material prosper
ity exists also thero Is scant room in
which to develop tho higher life.
Tho productive activity of our vast
army of workers, of those who work
with their head or hands, is tho prime
cause of tho giant growth of this na
tion. We havo groat natural resources
but such resources are never moro
than opportunities, and they count
for nothing if tho men in possession
hnvo not tho power to take advantage
of them. In such development laws
play a certain part, but Individual
characteristics a still greater part
Tho primo factor in securing In
dustrial well being Is the high average
of citizenship found in tho community.
Tho bost laws that the wit of man can
devise would mako no community of
thriftless and Idle men prosperous.
No scheme of legislation or of social
reform will ever work good to the
community unless It recognizes as
fundamental the fact that each man's
own Individual qualities must bo tho
prlmo factors in his success. Work In
combination may help, and the stato
can do a good deal In its own sphere,
but in tho long run each man must
owe his success in life to whatever of
hardihood, of resolution, of common
jienso and of capacity for lofty en
deavor he has within his own soul.
It is a good thing to act in combin
ation for the common good, bHt it is
a very unhealthy thing to let our
selves think for one moment that any
thing can ovor supply tho want of our
pwn Individual watchfulness and ex
ertion. Yet, given this high average of indi
vidual ability and invention, we must
ever keep in mind that It may be nul
lified by bad legislation and that it
can bo given a chance to dovelop un
der the most favorable conditions by
goed legislation.
Kit Cursbh'B caTiTn.lTtolTT Tort Lyon,
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