Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-10-01

WASHINGTON, September 30.-In the
annual report of Railroad Commissioner
Horace A. Taylor, to-day filed with the
Secretary of the Interior, the commissioner
gives an exhaustive review of the railroad
situation in the West and Northwest, and
discusses the ruinous rate wars which he
styles alike destructive of the interests OF
the roads and the shippers. Speaking Of
railway legislation he says he believes the
most of it has been wisely conservative, and
continues:
The theory that the recognized laws of trade
would ultimately so far prevail as to sufficiently
regulate the management of railroads in the
interest of the public has not proven to be cor
rect Events have demonstrated that these
laws have become practically imperative, and
that it is necessary to invoke legislation. The
exceedingly unfortunate situation which
has of late prevailed in the West and North
west. presents a vlvld illustration, and gives an
expensive, though apparently unheeded lesson,
as TO the effect OF unreGulated competition.
Unless conditions are changed through the
voluntary actions of tine railroad companies, OF
by legislative interference, commercial rela-
tons will be seriously disturbed and lasting in
Iurles inflicted upon the railroads and upon
every department Of trade.
MORE ROADS THAN TRAFFIC.
believe that in many sections of the West,
conspicuously in the States of Iowa and Kansas,
the mileage of railroads is greatly in excess of
the legitimate needs of the carrying trade. If
this be true, then many of the investments in
railroad properties there must fail to yield re-
munerative dividends or the schedules of rates
be fixed so high as to prove ruinorsly burden
some to traffic. For this unfortunate condition
of affairs. neither the people nor the railroad
companies are wholly to blame. Both have
contributed TO bring it about
The people have encouraged railroad con-
structlon wherever it could be secured, regard
less Of existing necessities or future complica-
tions, and the railroad companies have been
duly eager to control the trade by building new
lines and feeders for established ones where
the volume OF traffic was not sufficient to sup
port them. This condition of things presents
problem difficult of solution. Ii is safe to say
that the remedy does not lie in the levving of
extoruonate charges or waging of reckless
rate wars. The security of the railway system
lies in administering it with careful respect to
Justice and the public welfare.
- ITS OPPRESSIVE HAND
lis laid too heavily upon the people. revenge and
revolt will be sure to follow If investors in
railroad properties have expended their capt.
tai in the construction of lines not demanded
by the present trade, then they must share the
fate of all who invest in unproductive enter
prises. Relief can only come through increased
settlement, stimulating business and develop
ing natural resources Both the interests of
the railroads and the public suffer from the
TACT that railroad managers devote their ener-
gies too largely to the securing of trade from
computing centers, and do not sufficiently en-
courage the development of local traffic
q n Of hov
reeomme ,ded the enactment of law providing
for the funding of the debts of the bonded
ROADS. These recommendations have been
approved by Secretaries of the Interior and of
the Treasury in their reports. and by President
Cleveland in a message TO Congress. The
questions Involved are serious and important,
and am of the opinion that the time has
arrived for some positive legislation.
GOVERNMENT INTEREST IN RAILWAYS.
Substantially the recommendations made by
the officers mentioned have been embodied in
bills and presented in Congress, but no final
action has been had on them. 1t has been
found that the legislation establishing sink
ing fund and providing for the payment of
certain per cent of the net earnings of the roads
into it, will not realize the end sought the pay
ment of accrung interest and the final ex-
ungulshment OF the debts due the Government
Ihe plan heretofore proposed is, in Short to
1Und the whole remaining debt and interest in
obligations ofhXed amounts and maturity. Time
is OF small importance compared with security
IN the adjustment of these matters. Should a
funding bill be presented to Congress at the
Forthcoming, or at any subsequent session it
should be carefully guarded so as to protect
fully the interests of the Government and i'm
pose no unreasonable obligations or undue
hardships upon the railroad companies
1t is very clear to my judgment that there
should be an extension of time, and reduction
Of the rate of interest / am not thoroughly
convinced that the end sought can be best at
tanned by the passage of funding bill provid.
ing for regular fixed payment Successive
crop failures, or years of business depression
might render the companies unable to meet
their obligations.