"I dwell upon this a moment further, because it seems plain to me that the prosperity of the country is measured and will be measured by the ability of its railroads and waterways to transport its increasing commerce. With a country of such vast extent and limitless resources, with all the means of production developed to a wonderful state of efficiency, the continued advancement of this great people depends primarily upon such an increase of transportation facilities as will provide prompt and safe movement everywhere from producer to consumer; and that we shall not secure unless the men who are relied upon to manage these great highways of commerce have fitting opportunity, and the capital which is required for their needful expansion is permitted to realize fairly liberal returns." (Hon. Martin A. Knapp, Chairman Interstate Commerce Commission, in "Annals of the American Academy of Political and Social Science.") LESSON XIII. LOOK UPON THIS PICTURE. What is this I see? Smokeless chimneys! Closed factories. Spiders' webs across the doors of opportunity. Grass growing rankly in the streets of industrial towns. Dejection on the face of nature and of man. What does it mean? The railways have ceased to earn enough to meet expenses and provide for the progressive maintenance of their equipment and plant. Why, are not their receipts greater than ever? True, but their expenses have increased more rapidly than their earnings and their net revenues have only been maintained by postponing purchases that must be made some time or the railways will be incapable of performing their public service with safety, dispatch and economy. In 1908 and 1909 the railways scrimped maintenance $300,000,000 and this will have to be made good some time, some how, before they are on as sound an operating basis as they were before the panic of 1907. What must be done to avert the consequences described above? A readjustment of freight rates, involving a reasonable increase applied to such articles and commodities as can stand it, without any appreciable hardship either to manufacturer, merchant or consumer, means the difference between grinding economy and a fair degree of prosperity. THE REVERSE OF THE PICTURE. Would a 10 per cent increase in freight rates mean such a difference? It most certainly would. It would mean the difference between closed shops and suspended improvements and the resumption of improvements with the ability to resume the large purchases of material and equipment, giving full employment to labor and furnishing improved transportation facilities, which, within a very short time the commerce of the country is going to demand more insistently than ever. To hundreds of thousands of workingmen it means the difference between steady, well-paid employment and walking the streets looking in vain for work. LESSON XIV. NARROW MARGIN BETWEEN EARNINGS AND EXPENSE.