“THEODORE ROOSEVELT.”

This letter achieved its purpose, and the threatened reduction of wages was not made.  It was an instance of what could be accomplished by governmental action.  Let me add, however, with all the emphasis I possess, that this does not mean any failure on my part to recognize the fact that if governmental action places too heavy burdens on railways, it will be impossible for them to operate without doing injustice to somebody.  Railways cannot pay proper wages and render proper service unless they make money.  The investors must get a reasonable profit or they will not invest, and the public cannot be well served unless the investors are making reasonable profits.  There is every reason why rates should not be too high, but they must be sufficiently high to allow the railways to pay good wages.  Moreover, when laws like workmen’s compensation laws, and the like are passed, it must always be kept in mind by the Legislature that the purpose is to distribute over the whole community a burden that should not be borne only by those least able to bear it—­that is, by the injured man or the widow and orphans of the dead man.  If the railway is already receiving a disproportionate return from the public, then the burden may, with propriety, bear purely on the railway; but if it is not earning a disproportionate return, then the public must bear its share of the burden of the increased service the railway is rendering.  Dividends and wages should go up together; and the relation of rates to them should never be forgotten.  This of course does not apply to dividends based on water; nor does it mean that if foolish people have built a road that renders no service, the public must nevertheless in some way guarantee a return on the investment; but it does mean that the interests of the honest investor are entitled to the same protection as the interests of the honest manager, the honest shipper and the honest wage-earner.  All these conflicting considerations should be carefully considered by Legislatures before passing laws.  One of the great objects in creating commissions should be the provision of disinterested, fair-minded experts who will really and wisely consider all these matters, and will shape their actions accordingly.  This is one reason why such matters as the regulation of rates, the provision for full crews on roads and the like should be left for treatment by railway commissions, and not be settled off hand by direct legislative action.

APPENDIX

SOCIALISM

As regards what I have said in this chapter concerning Socialism, I wish to call especial attention to the admirable book on “Marxism versus Socialism,” which has just been published by Vladimir D. Simkhovitch.  What I have, here and elsewhere, merely pointed out in rough and ready fashion from actual observation of the facts of life around me, Professor Simkhovitch in his book has discussed with keen practical insight,