The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1883-09-18
THE SENATE COMMITTEE.
commissioner Fink Expresses His Views
at Length-He is Opposed so Govern
mental Control of Railroads.

NEW YORK, Sept. T.-Albert Fink Com
missioner OF the Trunk lines was the first wit
ness before the Senate Committee on labor and
educaton.today,
!, Mr.. Fink testified at some length relative to
tne relations of railroads to each other and to
the business interests of the country. In re-
gard 10 the power OF railroads to extort unrea-
sonaple charges he thought it impossible. The
competition OF water routes would ALWAYS act
TO prevent this, besides other coalitions would
enter IN to prevent maintenance OF an extor-
tionate rule. He admitted that the east and
west rates were higher in the winter than in
summer, but he thought this increase Just as
the obstruction caused by snow and lee in the
west during the former season rendered trans
portation of freight more costly; besides the
water routes had an indirect influence in de-
termining the rate fixed. The object was to
charge such tariff that freight could be NOV
ed, and charges depended in great measure
on the market price of the commodity i'll the
piace 10 which 1t was to be shipped. The
amount OF fluctuations of rates at different sea-
sons was never more than few cents hum
ured. The capitalized value of the 10000
miles OF railroad in the United States was
about seven thousand millions Of dollars Last
year the gross receipts of all these different
lines was 800, ,000 and the net receipts for
the same time were $500 600. Out Of this
latter sum 0O,OOO.0 900 had been paid in divi-
dends on stock. and OF the remainder a large
proportion was expended in interest on bonds
About 40 per cent OF the remaining expenses
Oh all the railroads went to laborers employed
as brakemen, conductors, engineers and fire.
men. The extra charge to the consumer for
transportation was insignificant The added
cost Of transportation to man for flour and
meal consumed by himself and family for the
year was about 81. 80 or one days pay Of labor
The system of pooling was resorted to as
means OF maintaining rates and preventing one
road from cheating another by violating gifts
agreement and cutting the rates.
The statement has been made by ex-Secre-
tary Window to the effect that Railroads
had 1t in their power to put up rates at any
time and extort money from shippers, ann that
raise OF cents hundred in cost of trans
portatien of grain would give gain of $685.
100000 to railroads." This statement was
copied extensively throughout the country.
This was based on wrong estimate, as a raise
of five cents had only brought in $2,800,000.
Besides, there were always a reduction cores
ponding to an increase of rates ane the Efiuctu-
ations in grain was between 80 and % cents
per hundred; 1t never went beyond these linn
Its, and the rate was now at the lowest point.
The witness did not think it was any evidence
that road was charging two high rates that
the road was paying 20 por cent dividend on
its stock
The only thing to be regarded was the rates;
IL these were reasonable it made no difference
how much road made. 1t only showed that
the road by its good management or superior
accommodation had secured larger portion of
business. Every limitation Of profit, he
thought, should be accompanied by guarantee
against losses. There was little danger. how
ever, that railroads would make exorbitant
charges in this country, and there were very
few railroads that made as much as 10 per
cent. The railroads in this country could not
be replaced by their present capitalization.
lt was true many roads might have watered
their stock, but it was equally true that many
oxrvifh lor OF cfa
bankruptcy and the stock cancelled 1t was
not true that some communities were taxed to
support railroads at the expense of others.
This could be seen by examining the condition
OF each road separately and of the community
which patronized it.
The Regan TRANSPORTATION bill he regarded
as utterly impracticable. The freight rates in
this country were the cheapest in the world,
and the tendency was to still lower them. The
scheme advocated by many that the govern
ment should purchase the railroads and run
them itself, he pronounced to be the widest
folly, and one bich no sane man would for
moment contemplate. The character of this
government was utterly inconsistent with such
thing, and If it had been accomplished in
sther countries, it was under very different
conditions. In regard to trades unions Mr..
Fink thought they were extremely beneficial
to the workingmen when restricted to their le-
gitimate functions He did not think strikes,
as rule, were beneficial, but thought difficult
ties could be adjusted by other means more eff
tectively if labor was properly organized.
Strikes were the result Of defective organiza-
tlon.
Thomas Foiture, editor of the New York
Globe, colored organ, testified that the edu-
catioual facilities of the south were very poor
and he advocated national appropriations for
this object. He condemned the convict labor
system in the south and thought that an in
vestigating committee should be appointed to
inquire into the matter thoroughly.
Mr.. Tink thought legislation might be en-
ployed to assist railroads in maintaining uni
form rates, if such an organization as he man
aged should be Incorporated by the general
government, but no direct legislation in any
question affecting rates would avail. In fact
he thought that for some years it would be
best to let railroads manage their own business
until people come to understand that the in
terests sof the public and the railroads were
identical and any legislation or attempt at
legislation at the present time would be regard
ed with suspicion.