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EO.UNDEflL
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VOL. LXXXVIIl-NO. 22.
WILmTwOTOK, JSf. C, SUNDAY MOENIKG, APJEUL, 10, 1911.
WHOLE NUMBER 13,584;
PAGES 9 18 14
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S RAILWAY PROSPECTS
Address of President L. E. Johnson,
0f Norfolk & Western Railway
Before Recent Session of
Commercial Congress.
Ir chairman, Ladies and Gentlemen:
I, iS n,)t unnatural, when we speak
0t Railway Prospects in the South"
h;1; (,;ir minds should hark back to
tl,jl i,.fii;inings of railway development
and
.isn-rtain it me lessons 01 me
v not give us something upon
n:ist imi
ttliich we may predicate the future,
for i he purpose of studying railway
.l(.niii1iKhments and railway pro-j
uivss and prospects, I know of no en
vironnient more suited to the purpose
ilian within the borders of this great
rmital of the" "Empire State" of the
South reared as it has been by South
,rn nun who typify the very bst in
American industry and culture. At
lanta itself sets at naught all the tra
ditions of the more remote past and
inings to our minds the knowedge
that the introduction and development
of railroads has meant the establish
ment of a new industrial force in the
progress of this country and his dem
onstrated that great industrial centers
v rxist and thrive away from loca
tions which were formerly considered
necessary to substantial commercial
progress.
If any one, during the first half of
tin last century, had been called upon
to predict what would be the location
of Georgia's greatest city during the
years which should mark the opening
of the present century, he would hard
lv have selected the location which
marks the gathering place at this mo
ment of this great commercial con
gress. Men who had studied the past and
gathered together the experience of
former ages would have sought at the
water's edge the location of Georgia's
future commercial and industrial cen
ter. Probably at some ample harbor
lipon the seacoast, or at least upon the
banks of some navigable stream. No
one in that day and generation would
have had the temerity" to predict that,
far removed from water (transporta
tion, there should be builded up this
great metropolis of industrial traffic,
whose influence would pervade the en
tire South, and rival its greatest sea
ports. That Atlanta exists a a domi
nating factor in the commerce of the
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South, indicates that some new princi
ple has become a part of our economic
development.
Before undertaking to say a word
or two in regard to the present "Rail
way Prospects," , which is the subject
which ' has been assigned to me, it
will doubtless be profitable to reflect
a moment on themaaafiner in which
railway construction ' was begun
in the South and throughout our coun
try generally. It was in the South
that the operation of railroads 'with
steam as the sole motive power was
first undertaken, and this action
adopted by the Charleston & Hamburg
Railroad Company on January 14th,
1830, marks an epoch in the transpor
tation development of this country. It
was this year that the railroad com
pany just mentioned, in pursuance of
the conclusions' reached by its board
of directors, issued an order for the
construction f . alocpmotive which
had been designed by a citizen of
Charleston, and which was built at'
the West Point Foundry in the State
of New York. The name borne by
this locomotive, the first used fn regu
lar service, was "The Best Friend of
Charleston," and it is needless to say
that the name so adopted was a fit
ting title for the instrument of com
merce then put into use and which
has become so large a factor in the
civilization of our country.
The construction oi railroads in the
early history of the South possessed
but few attractions to those who .had
money to invest in business enterpris
es. The experiment was considered
doubtful and the undertaking highly
speculative; and, although the neces
sity and advantage of more adequate
transportation facilities were recog
nized,, and appreciated as being impor
tant in the development of the coun
try, yet so Indifferent was -private
capital to venture upon an undertak
ing both costly and uncertain, that
very few of the roads of the South in
its early history were constructed
purely through individual contribu
tion. As a matter of fact, the promo
tion and construction of most of the
earlier built roads was the result of
the' co-operation of the State with in
dividuals, to which was generally add
ed the aid of communities and cities
whose interest it was thought would
he particularly advanced by such con
struction. In other words, government
ownership of railroads is, for practi
cal purposes, not, a new thing in this
country, but, as a matter of fact, it is
an experiment which has already been
tried and while, during its existence,
much, was accomplished which under
other auspices would have been dif
ficult, yet the theory has long since
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Our line is the mod: complete in the State.
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teen abandoned as unsuited to the
conditions existing in our country, and
not in harmony with our form of gov
ernment. However valuable and necessary the
aid of the State was in he beginning
of railroad construction in this coun
try, it soon became apparent that
railroad operation under the influence
and control of governmental authority
was unsatisfactory and unremunera
tive. The States soon ascertained that
the properties they were undertaking
to operate were generally conducted
at an annual deficit, and even if prof
itable the State was put in an embar
rassing .position of operating proper
ties for the peculiar benefit of one
portion of its people and one of its
sections at the expense of the other
sections, and the conclusion was forc
ed upon the people that it was no
part of the function of the govern
ment to make money out of its own
citizens or to benefit one at the cost
of another." Many; causes co-operated
to bring about the final abandonment
by the States of their control and in
terest in their railroads, but chiefly
was this policy of abandonment due-
to the conviction on the "part of the
people that the operation of railroads,
involving the employment of vast
numbers of men and the inauguration
of competition between sections and
cities equally entitled to .protection
and consideration from the ( State,
made it impossible for tine State wise
ly and efficiently to carry on these
complicated and hazardous undertak
ings. f.
While these policies were being an
augurated and tried out in the var
ious States and communities of the
South, the Civil War came on, the re
sult of which was the annihilation of
much of the work which had been
done in railroad construction and, for
many years thereafter, every energy
of the people of the South was de
voted to the reconstruction, consoli
dation and operation of these avenues
of commerce. The States did not un
dertake to rehabilitate the roads, but
usually turned them ovor to compa
nies financed by individuals and, for
all practical purposes, we may say
that the growth of railways, in the
South since the year 1865 has been
the result of individual enterprise and
corporate ' energy.
Before we can say what is the "Rail
way Prospect" in the South, I take
it that it is necessary to see what has
been accomplished during these years
in which the companies have been
working out their part of the prob
lems of development, for I take it that
if the railroads of the South have
been laggards in the race of progress,
17ft
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or have so conducted their affairs that
there is in the minds of the people a
lack of confidence in their integrity,
then they have failed to do their part
in the upbuilding of the country, and
have been lacking in patriotic sacri
fice for the common benefit when sac
rifice has been necessary. If these
are facts, then in my judgment the
prospect for the future cannot be en
couraging. The roads have had a fair opportun
ity to do the worK that has been com
mitted to them, and if they have fail
ed to .live up to the responsibilities
imposed, and the duties assumed,
then I take it they may reasonably ex
pect the same reward that was ac
corded in th Scripture to the unfaith
ful servant: "And there shall be taken
from him even that which he hath."
As one who has devoted a lifetime
to the construction and operation of:
railroads in this country, and whose
maturer years have been spent in
earnest work in the development of
railroad transportation in the South;
and who, as theesult of these later
years of work, (has become reasonably
well acquainted with the problems
that have heretofore been met and
handled 'by those who have had to
meet the transportation problems of
the South, I wish to bear emphatic
and earnest testimony that no just or
intelligent criticsm can be properly
made against the manner in which
your people have handled a problem
which has been surrounded with
most appalling difficulties. Indeed,
the progress thM has been made dur
ing these years in railroad develop
ment cannot fail to excite the wonder
and admiration of those who are fa
miliar enough with the situation to
realize the difficulties which have
been overcome. Those railroads which
existed at the close of the war rep
resented, as many of you well know,
but little else than a franchise and a
right of way, and the work of the
years that had gone before had been
to a large extent annihilated as the
result of four years of enforced neg
lect, and I defy any one to name an
other kind of property that deterio
rates as rapidly as a railroad, result
ing from lack of repair. Eternal vig
ilance, and no small amount of money,
is the price that must be paid for the
maintenance and continued existence
of a railroad, yet these roads havej
been reconstructed and new lines
have been built to an extent that has
been marvelous, considering the dif
Acuities that had to be overcome. Al
though a vast amount of mileage is
yet to be constructed in order that the
transportation facilities dt the South
shall be ' equal to many other sections
' 1 M I I
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i
77
of our country, still the work that has
been accomplished makes the prob
lems of this generation easier and the
way is open, if other conditions shall
be . favorable, for this great work to
go forward to its complete develop
ment. Statistics of railroad accomplish
ment are not easily available, except
during the past twenty years. If we
had the statistics of, the work done
during the quarter of a century suc
ceeding the closing of the war, the
percentages of comparison, year by
year, would be extremely interesting
and would in every instance, I be
lieve, show an amount of progress,
even under the depressing conditions
that existed during much of that
time," that would reflect tremendous
credit upon those who were fighting
the industrial battles of that day.
I invite your attention, however, to
a few simple statistics of the past
twenty years, believing that they
ought to be sufficient to satisfy the
most cntical, that the railroads of ttfe
South have not been negligent of the
possibilities resting upon them, but,
in trust and in fact, have been diligent
in providing facilities for the develop
ment of the common interests. The
result of the activity and energy of
your people who undertook to reha
bilitate the railroads of the South,
showed as the result of their achieve
ment up to the year 1890, the exist
ence of 24,535 miles of single track,
miles of second track, and 3.265
miles of yard track and sidings, in
the section south of the Potomac and
Ohio rivers, and east of the Missis
sippi. After that year, the develop
ment was not so marked in the exten
sion of new lines of road, although the
construction of such new lines was
very substantial, but was shown in
the construction of, facilities for the
handling of the business which the
earlier railroad construction had
made possible. In 1909, the amount of
single track had increased to 41,273
miles, second track to 1,656 miles, and.
yard track and sidings had increased
to 11.247 miles. These figures would
seem to indicate that the railroads of
the South have been keeping pace
with the industrial development and
nrovidine' fa pill Hen. to mppt its noorle
The- increase of rofling stock in both
quality and quantity during this per
iod was as marked as the improve
ment and increase in roadbed and
new track. In 1890, the report of the
Interstate Commerce Commission
show that there were in this section
3,310 locomotives , and ; 109,669 cars,
while m 1909, the number of locomo
tives had increased to ' 7,772, and the
cars to 308.807. During this period,
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there was .a 'distinct tendency espe
cially during the later years towards
the enlargement of locomotives and
cars, and hence the numerical figures
given above only represent in part
the growth of yoflr railroads in their
rolling stock intended for the u?e of
the public in these communities. This
increase in the various elements
which go to make up the efficiency
of the railroads of the South has been
largely in excess of the increase in
population during the time mentioned,
for while, from 1890 to 1909, the sin
gle track mileage had increased 68.22
per cent., and second track 54.23 per
cent., yard "track and sidings 244.47
per cent., locomotives 134.80 per cent.,
and cars 181.58 per cent, the popula
tion of the territory served by the rail
roads increased from "1890 to 1910,
from 13,845,801 to 18,776,059, or 35.61
per ceet. m '
Again let us look for a moment at
the capitalization and investment in
railroad property in the South dur
ing the same period, and the figures
on this line show the same progres
sive development. In 1890, the capi
talization of . the railroads in . the ter
ritory above mentioned, which capital
ization includes the outstanding stock
and funded debt of those roads, was
$1,153,374,401. This capitalization in
1909 had increased to $2,265,101,150.
I have no means at hand for ascer
taining how much of this capitaliza
tion has been contributed by the peo
ple of the South, but I think that it is
safe to say that a very small portion
has been secured from that source
and I take it that from that reason,
much credit is due to the people
mostly your own citizens who have
had the character and ability so to
impress themselves upon the invest
ing public of the world whereby such
large sums of money have been en
trusted to their care and placed at the
service of your communities, to be
primarily benefitted by the construc
tion and upbuilding of these railroads.
This money has "been secured, and ex
pended for the benefit of this territo
ry, although the return thereon has,
in most cases, been very meager, and
the average return much less than
reasonable. Interest on bomls and
dividends on stock which have been
received on account of railroad invest
ments in the South from 1891 to 1909,
both inclusive, represent a rate of in
terest upon this capitalization ranging
from 2.54 per cent, to 3.60 per cent.
I am quite well aware that, when
ever the singularly slight return upon
railroad investments in the South is
commented upon, the answer of thoBe
who are critical of raUrda'dfr usuaWj
(Continued on Page Ten.)
i. . 1
on Easy Terms
FOR TRAINING THE YOUTH
Southeastern Division Public High
Schools Contest, Goldsboro, -May
10, 1911 Big Educa
tional Event Then.
The committee appointed at the
Wilmington meeting of the South
eastern Division of Public High
Schools to arrange high school con
tests for the said Division, Jncludihg
the following counties and public
high schools: Bladen Abbot tsburg,
Bladenboro, White Oak; Brunswick
(no public high school); Carteret f
Atlantic; Columbus Chadbourn,
Whiteville; Craven Dover, Vanqe
boro; Cumberland Godwin, Hope
Mills, Stedmand; Duplin Tachey,
Warsaw; Green; Hookerton; Har
nett Angier, Lillington; Johnston
Benson, Kenly, Wilson's .Mills; Le
noir LaGrange; New Hanover (no
public high school); Onslow Rich
lands; Pender Atkinson, burgaw;
Robeson , Lumber Bridge, Orrum,
Philadelphus, Rowland; Sampson
Clinton, Newton, Grove; . Scotland
Gibson; Jones Pollocksville; Wayne
lalling Creek, Pikeville, Seven
Springs; Wilson Lucama, nock
Ridge; met in Goldsboro, Saturday,
January 28th, and adopted the fol
lowing plan to be submitted to the
principals of the various public high
schools:
First. That we hold an inter-county
high school meet on or about the iuth
of May, at some central point.
Second. That only State high
schools can enter the various con
tests'. , '
Third. That pupils entering the
contests shall be bona fide students,
but that there shall be no age limit.
Fourth. That we have both literary
and athletic contests.
Fifth. The literary contests shall
consist of debating, oratory, essays,
declammations, music vocal and in
strumental. Sixth. The literary contests shall
be controlled by the following regu
lations, viz:
In the debate each school may fur
nish one representative. The speech
must be the boy's own t product ion.
He, shall receive no. help,, save that of
t grammatical and rhetorieaf corric-
( Continued on Page Ten.)
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