Show I The ike Railroads Railroads' ds' ds Opportunity I IBY BY B. B l I F. F YOAKUM r Chairman Executive Coma ComI Itte Rock hock Island System The question as ams to whether Roosevelt is a i menace to business Is a s f haid halt one because of oC the tho peculiar ordeal through which the tho whole country haben has ham been ben passing passing that has re resulted in th present conditions Wo We are In a state cT ol readjustment olour 01 ol our business affairs as well wel as an adjustment ad ad- J of our ow- business methods n Any man maim mon responsible for tor a 0 corporations corporation's polIcy polIcy pol pol- Icy who cannot connot r read al tho signs of the time times sufficiently well wel to see eo that there must be bo a change hansa in corporate procedure procedure dure is blind to what Is 18 going on about him j I Time Tho policy which has ha been pursued b by the tho federal federal go government while causing caul- caul caus caus- Jag ing a hey heavy shrinkage e of if security prices bringing loss to man many people and temporarily depressing depressing business had Imas undoubtedly been heen instrumental in preventing a national disaster of or fa far l' l greater greatel magnitude than tho the present period of ot tension and unrest It I is unreasonable to assume that the federal government is going going to carry carryon on 01 a warfare against tho the railroads and tIme the industries of or the country countr to a point of or That would be neither neither nei nei- ther sound business judgment nor nol good gool politics Thinking people would repudiate repudiate dia diate te such n a I policy We TO have reached a bInt whore where as business men we should recognize the tho a auth authority rl of the te federal government go clment t to o exercise certain supervision over oer tho thu t traffic of oC the transportation companies 8 which should be he fair Call to both tho tho railroads rail rail- rl- rl r roads oads and the public the they serve Tp expose tho the excess of corporate t tI tru rut t Is 15 not apt a a. n detriment but a I t tI lon 10 10 t loh L to rc I nb aboUt Is hit hitI t give a guarantee of or equality and and fair administration in the future Such a n I i policy carried 1 out on oti a conservative bu basis asis b II must JUHt bo IJO beneficial to al all It will wJ i in n tho the cul end be he a a safeguard to the time constructors con con- s nail and the tile operators of or our railway railway rail rail- rai- rai con j way systems as well wel as to their stockholders stock stock- ha h holders thus establishing establishing- confidence a and nd giving security to the time securities Thu Tho new state and national legislation legisla legisla- t ion tion ton will wUI revolutionize rc tho methods of s solving our out transportation problems problem sp sU U Un Under er it the tho railroads wilt will wil have an op opportunity op- op p to become important factors i in n formulating and putting into effect f ft fair air Cal and anti equitable rates and re regulations regula ula- ula t ion Uon under an agreed Icer working working pl plan n that makes for closer operation co-operation co and mutual protection to the public The Tho earnings must bo ho sufficient for forthe forthe t the he railroads to meet all al legitimate re requirements ro- ro ts to develop the coun country's 1 1 8 traffic t and ant at the same Hamo time Ume give a f fair air Call return to tile the owners nut But If I the tho railroads fall fail rai to avail al a t themselves of or this opportunity I do donot donot doot n not ot believe e bele that another on one like It wilt will 11 C come OllIe to lo them again aroln Public pressure a and aul nd public sentiment will Wil then force fOlce r rules ules and regulations regardless less of ot expediency ex ex- p or rea reason ot In other words it seems s to mo 1110 that tho the administrative o a and nd legislative bodies representing the p people eople and the tho railroad managers representing rep rep- r resenting the stock and bond holders s should hould not resort to Insane opposition but sane co co Tho The effect of the thc preS present nt financial s stringency will wl he be to cause all un railroads rail rail- r loa roads oads s temporarily ti to harbor their re resources rim rim- s sources and arni to discontinue all al expansion expansion sion and now Improvements Tho Tim only expenditures will bo ho those necessary to toa toa toa a safe and proper maintenance of oC the properties rUel Th Tills This Is forced forel ref retrenchment t coming coating as it does docs ut at at tho the beginning oC or orthe the winter must make a serious difference dir dif ference terence among among a great greal J mass of or the wage earners wage wage-erners of the country On account account account ac ac- ac- ac count of the exceptional prosperity of or ortho tho time last few fes' years ers han many of oT them havo have grown accustomed to a luxurious way of living than the they enjoyed be be- be fore To be bo forced to to economize will willbe willbe be unpleasant to say the least If I the he scarcity of work continues g it will wIl somewhat dampen the enthusiasm of or orthe the idle over O tile the tie Republican administration adminis because hardship Is not exactly C conducive t to political fervor rho Tho facts are arc that time the lle country's business bus bus- incas iness does not warrant a 0 panic We Ve Weare VeIr Weare Ir are In itt tile the enjoyment of a real and widespread prosperity Tho roo fields of or are teeming teeming with riches and an abundant crop and good prices are assured There are arc practically no farm fum mortgages which W wax was H not the ho case a afew afew u few ten years ago Many tan of our 1 0 farmers 1 are arc now no buyers buels of oC land mortgages and amid lenders of oC mone money t 1 Tho policies that the administration L stands for Cor are healthy and antI will win provo o L I constructive c Tho method of or applying I them them-n in iii some somo instances line liun III been ill ill- ll- ll t t advised and a mistake But taking tho the good bood with tho the bad bal I believe beleve that wo we aro aio better beter off orr under tho the existing conditions than we should have been had hal we wo continued without governmental IO government government- al ai r restraint t. t Wo 0 shall emer emerge o from our 0 present ent disturbances bances with a clearer un understanding understand understand- lag ing Ing with the tho government a n closer knowledge of or our responsibilities to our 0 stockholders with our oum 0 railroads s I and corporate properties worth the tho money and anti Ia based el on ou their actual earnIng earning earn earn- ing lug capacity under a s system slem of ac accounting accounting ac- ac counting that has the tho stamp of or ap approval ap- ap pro oval of or an officer of or tho the federal go gov gov- Therefore e. when our home bankers send their thol annual animal statements to their foreign correspondents they can Call cn sa say In offering our securities to their customers with Ith absolute confidence conJ conJ- deuce dence lence that these statements are correct correct correct cor cor- and have havo 1110 been carefully t- t Investigated In and amid approved b by the time government go t This federal approval oI Is as near as we can cm possibly get to obtaining the tho governments government's actual guaranty guaranty upon our securities and anil it will 1 be u. u 1 safe and sane substitute for tor government 10 ownership owner owner- situ ship a u condition for which wo we arc are not t read ready y Therefore I 1 can see no 10 reason wh why a n permanent recession of or business should conic come to tho timo nation at this time either trout from conditions or 01 as us a result of or the time work tho the federal government has been beau Jle In |