PROCEEDINGS OF THIRTY-THIRD FRUIT-GROWERS f CONVENTION. 107 



attention is directed to an article in the North American Review for 

 November, showing the relative returns based on actual values, as near 

 as they can be ascertained, from agricultural, manufacturing, and rail- 

 road investments. The figures used are from the Interstate Commerce 

 Commission reports for 1900 and 1905, the special census for manufac- 

 tures for 1905, the general census report for 1900, and the Yearbook of 

 the Department of Agriculture for 1905. I do not wish to weary you 

 here with the result shown: it is sufficient to say here that for each 

 $1,000 invested the net returns to capital for manufactures were $151, 

 agriculture $98, and railroads $44. 



Now, the dollar that goes into the construction or reconstruction or 

 equipment of a railroad is a privately owned dollar. It may freely go 

 into any other form of industry — into a brick block, or a fruit orchard, 

 or a cannery, or a farm, or a town lot. or what not. If you can not hold 

 out reasonable assurance of the safety of that dollar and some return on 

 it, the owner won't invest it in a railroad. During the last year there 

 has been a great depreciation— billions of dollars— in railway securi- 

 ties, because the owners of the dollars invested therein either feared 

 for their safety or thought they saw a better chance to make money 

 through some other investment, and not only have railroads been 

 affected, but also other great industries, copper, steel, coal and others 

 finding their markets largely in railroads. It is not my purpose to go 

 at length into the causes creating this belief. I have already quoted 

 from statistics available to you all. showing that other investments have 

 been better than railroads. Since the date of those figures there has 

 been widespread legislation increasing the expenses and decreasing the 

 rates of railroads. State legislatures alone have passed one hundred 

 and seventy bills, more or less, adding to their burdens, and practically 

 without economic investigation. 



The other business of the country— manufacturing, agriculture, min- 

 ing, lumbering, and so on — has flourished during these last few years as 

 never before, proving beyond doubt that railway rates are not and have 

 not been prohibitive nor a burdensome check upon commerce. In the 

 face of this wonderful progress have come these legislative attacks upon 

 railroads. You are to judge of the relations between the apprehensions 

 of investors and such legislation. Fit the case to your own affairs. 

 What have you considered good and safe investments during the last 

 year or so"? If fruit-growing and farming had been subject to price 

 reductions in relation to their products by legislative attacks, such as the 

 railroads have received, would not values of farms have been affected? 

 And would not it be more and more difficult to get somebody 's privately 

 owned dollar into the business? 



The U. S. Bureau of Labor Bulletin 69 of March, 1907, shows in- 

 creases in wholesale prices since the decade ending 1900 of 24 per cent 



