Show i I PRO 6 lEM EM Of I RAILROADS James J. J Hill Mill Says They Must Increase Capacity or orthe orthe orthe the Country Can Not Prosper Prosper Prosper Pros Pros- per as It Should KANSAS CITY Nov 20 James James J J. J Hill of St. St Paul executive h head d of the Great Northern railroad was the principal principal principal pal speaker at tho the thirteenth annual banquet of the Commercial club In this city last night Mr Ir Hill discussed The Commercial Development of the Mississippi Valley and gave Jave a comprehensive history and nd review of or Industrial conditions as thc they exist toda today He said ald In part The transportation facilities of the whole country are and have been unequal to Us its prell present nt means The They must be bo made equal to the burdens the they bear benr or orthe orthe orthe the country ean cannot ot pro prosper per How far railroad construction has 1 I been unable to keep pace with the do do- domestIc domestic nestle commerce the country even o now do does s not realize Railroad managements have m met t the situation b by every effort to increase equipment and increase efficiency In the operation In both directions what the they have accomplished is little short of won won- Everything that a capital capital capital capi capi- tal Ingenuity cheap service er high protected protected protected pro pro- labor and skillful management can accomplish has hall been beon done The Tho problem that remains Is both hoth physical and financial finan finan- financial cial to ta bring construction up to the thc needs o of our Immense domestic commerce commerce com com- merce and to raise the necessary money to do this If Ir both or 01 elthor either of or these Is III impossible ble bIn It is not the tho fault a II It of or the railway system And only gross gros Ignorance norance of th the truth or the tho malice of or disturbers can Ignore the plain and true facts Only by Improved methods of operation has the country been saved from a a. blockade of traffic as V would have destroyed b business business busi busi- 9 ness activity or turned it Into a game of confusion contusIon and chance This achievement in connection with witha a constant reduction of rates that has hns brought the tho average por mila for or each pa passenger nger In tho country countr In th the last Jast ten years year's to about 2 cents and the freight rate to 74 4 cents per ton per mile a saving that amounts to 0 billions of or dollars In tho the aggregate will bo better appreciated appreciated after a comparison between tho the statistics of or In the United States and the systems of or other countries coun coun- tries The Tho pere percentage of or not earnings s available available avail all able for or distribution on the capitalized capitalised cost of the railroad s systems of or England Is 31 dl p per r cent In France 4 c In Germany German 6 G. G The average of those these Is H 41 por per cent on ona ona ona a much higher capitalization p per r mile amounting In England to over four times an as much The total dividends declared b by all the railroads of or the tho United States In 1906 were but 4 per pel cent of the total capital stock tock outstanding On over O 38 SS per cent of outstanding stock tock no dividends divi l whatever were paid lOAn Any other business Is Judged b by H its average l conduct H Its average return returns The Th railroad system of this country countr Is II not nota a failure as has been ben charged by br men meon who are aro without knowl knowledge dge of or tho the facts net and whoso whose opinion IB is consequently o of no value On the contrary It Jt Is 13 when Juds Judged d b by results by official records perhaps the most conspicuous success achieved in the thA development of the tho United d Stat States 8 Costing but from one half to one fifth as much as tho the systems of ot oth other r countries and end charging rates rat from one half to one- one third ns as 8 great it carries nearl nearly double th the business per por mile and pays pl twice the rat rates of wages Few Inventions produced by American genius probably no other Industry founded and p perfected d by American Ameri Ameri- can enterprise can show a comparatively good record which in In the essentials of practical value alu so distances all compari compari- sons Under conditions most mORt difficult we wo have havo cr created a transportation system at nt lowest first cost cOll which gives 8 tho the most mOlt efficient service to tho the public at nt tho the lowest lowest low low- est t charge and pays paY Its employees the highest known scale of ot wages The Tho capital now invested In in railways Is IB well employed d and the tha men In charge of the railways In this country have struggled for tor nearly fifteen nUt years with th the greatest problem of or our how time how to move mo a load whose weight Increases from 10 to to 15 16 per r rent nt a Il year far with an engine whoso whose power Increases at nt the rato rate of about 21 p per r c cent nt a n year The Th limit of safe speedy and reasonable service with existing facilities haw has bt been en reached The Tho measure of prosperity Is tho ease case and certainty with which commodity may bi bo moved The TV whole hole situation declares declare that we must have r more mor new lines more double more mor and greatly enlarged terminal terminal ter ter- minal facilities How are these to he bo had and what hat Inducement can wo the offer orter to 0 the capital which must b be v willing to Invest Est before anybody will build bulb 1 them There I Is no subject no rl right ht to I be as- as or wrong to bo be rectified reel real or I alleged d. d that can take precedence of an n Issue so vital ono one so o rJ nearly concerning the Income tho the employment nt tho the comfort happiness and prosperity of every one ono of our people pp A year e ago I said that It ll would require rC or a II year for tor five p years oars to make mako our railroad facilities oqual equal to the thA demands upon them thorn Al Although Although Al- Al though substantially tl t tie the e amount of money monCy U suggested h by mo me a as Indispensable l has hils been collected and spent the railroads have barely hold their own and the future futuro fu- fu turo ture remains to 0 be bo provided for or Not l less but b In the th opinion of competent Judges judge p more perhaps more perhaps 50 GO per cent more- more must be spent nt annually for or tho the five years to come |