New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-12-24
LVANLA'S POLICY
PRESIDENT ROBERTS EXPLAINS THE STU
ALTON TO ENGLISH STOCKHOLDERS
RECENT DISTURBANCES IN THE RAILROAD
WORLD CoNsIDERED-wHAT THE IN
TERSTATE LAW HAS DONE
THE OUTLOOK.

|
| WORLD CoNsIDERRD-wHAT THE IN
TERsTATE LAW HAS DONE
THE OUTLOOK
Philadelphia Dec. 23.-Ihe following is copy OF
letter addressed by President Roberts, OF the PENN
sx,van,a Railroad COMPANY 10 Messrs. Ilazletine
Powell A. Co. London. and made public to-day In
the London papers:
Messrs Hazletre, Powell Co., No Diapers Gar
dens Throgmorton-st, London, e. c., England
Ny Dear slrs: As the recent disturbance IN west
bound rates has created a more than usual anxiety
among the holders of railway securities and has onoo
nore emphasizsd the difficulties attendant upon the
MANAGEMENT Of railway properties in the United
States IL may not be unwise for me at this Time 10
explain somewhat in detail the complications Which
surround the administration Of railways In this coun
try especially In respect to the maintenance OF proper
traffic relations and the securing OF uniform ana
proper rates.
After the panic Of 1879 which was due mainly TO
the fact that large amounts of capital were tied up
In unproductive lines the railway managers OF the
United States directed their especial efforts toward
preserving and utilizing these lines for the advantage
OF the territory which they were intended to develop
and also 10 the establishment of permanent policy
| in the general management Of their properties II
was conceded that the public entitled to uniform
and reasonable rates. and the shareholders 10 far re-
turns upon their investments, and, in order 10 pre-
vent far possible the conflicts which from time
to time unsettled all values and in1uriousy aheced
the shipper no less the railways they endeavored
TO divide the traffic among the competing lines so as
10 secure to each the proportion that practical ex
perience had shown It would under the varying
conditions that entered into the question In this
they pursued the policy which prevails in other
countries and notably in Great Britain where, after
passing through the same troubles that
now exist here, such arrangements, upon
receiving the approval Of the proper authorities
become effective and have the fun endorsement of the
| general public.
| RATES IN AMERICA AND EUROPE.
OF course, this problem was rendered much moro
difficult of solution by the fact that as prosperity re-
| turned the construction Of railways was again
stimulated, that in the fifteen years between 1873
and 1885, while the number Of the trunk lines between
the Atlantic soaboard and the West had doubled, the
aggregate railway mileage in the United States had
| also increased from 1000 10 100000 miles. 1t must
| be borne in mind in this connection that almost all
States possess general railroad law. under which
| few individuals construct railway between any
points in the State and thatwhile these charters arc
often taken out simply for speculative purposes, their
practical effect Is promote the construction of new
and often lines which at once divide with
the established systems tho traffic already fully served
thereby. AS a natural consequence of the duplication
Of roads between all the important commercial centres
the have been than cut IN two. and Of
own line the average rate per mile has fallen
| from fourteen mills to less than seven. proper
tionate reduction has also taken place in passenger
rates, that to-day both freight and passenger
| traffic are carried at less than half the
average rates that prevail abroad, while all the
facilities connected herewith have increased IN quite
| as large ratio as the rates have decreased.
| AS new contingencies from time TO time, the
| questions involved received the most anxious
| siderauon, and It is but Just 10 those engaged IN
| railway service In this country to say that their
| ranks contain men Of as high integrity and marked
ability other profession, and that the constant
effort Of the large body of those engaged in this
calling is TO deal Justly with the public and advance
| the permanent interests Of both the shipper and
the railway While the efforts made In this direction
were necessarily tentative and imperfect, they were
attended with fair of success, and repre-
| sented the best judgment of men who had grown
up with the railways of the country, and Who while
naturally desiring the best results for their share
| holders, felt that such results Gould be obtained
only through the prosperity of tho public, whose
| interests the railways are intended TO serve.
The steady growth OF the large transportation sys-
TENS seem to have finally impressed the public with
| the necessity Of some system OF Government super
vision which WOULD regulate the traffic passing over
of the Interstate Commerce law
! OPERATIONS OF THE INTERSTATE LAW.
Its provisions while necessarily imperfect have
brought clearly TO the surface the fact that the
regulation Of interstate commerce by the Govern
ment carries with it the duty of protecting the cor
|
traffic itself And while the Interstate Commerce
| Commission appointed under the law TO administer
its provisions, have discharged their difficult AID
responsible duties with great ability, e fact remains
now absolutely forbidden, without any other system
being substituted therefor; and, although these meth
as has been pointed out in several Of the recent
annual reports not entirely satisfactory 70 our com
pany yet they were the only ones that the manage
ment, In their efforts to conduct the affairs Of The
company in conservative manner had found
available to harmonic their traffic relations with
The ANTIQUITIES thus arising were not merely con
alluded to- but the law left all the great waterways
with which no country is more literally endowed
they chose 10 discriminate against any person
or community. and to make rebates and draw
This condition Of affairs was further
aggravated by its leaving the Canadian lines, which
form very close associations with connecting lines
in the United states entirely free from and untram-
The TTrinL line Association though continued since
the passage of The law, has only been able to suggest
that have arisen from time 70 time from the active
competition for traffic; difficulties the more perple1ing
because tho increase I'm the volume OF business has
been by means commensurate with the Increase In
the number of competitors. As TIE Industries OF the
country were fairly prosperous during tie greater
part Of 1881 the task not then serious, but In
the latter part Of the and ia the early portion OF
1898 when the volume OF traffic owing to the failure
minshed the competition for the through business be
came so sharp hat some oI the lines which depend
largely this class Of traffic resorted 10 methods d.
secure it which other corporations did not deem it
| legal proper 10 adopt.
As result of the methods then rcsorted 10 the
other lines were compelled 70 establish open ard public
rates this traffic and under the terms OF the law
make cOrresp Ondlng reduction I'm ali rates, bon
through and local This condition of affairs naturally
| began In the West. whore the number Of lines f.,
greater and the active competition for East bound
! traffic consequently much more severe.
THE RECENT REDUCTION IN RATES. /
Our company, in common with the other lines,
fully realizing the fact that this disastrous comped-
ton was only Of no benefit 10 the shipper or
general public, but meant serious diminution OF
revenue relaxed no effort to promote some plan by
which remunerative rates could be permanently
cured Unfortunately, however there seemed TO be
no arrangement within the pale Of the law that would
give a reasonable that advance In rates
would be more than temporary, but rather that II
would be followed by the state Of things that
had before existed The disturbance between the