St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-09-24
BECKER on FREIGHT RATES.

NISiOu VI tuC INV WLllCu OYutASo t'NS
one of the board shall be of the minority
political party. During all that time
his party has been IN the minority and
he has been the minority Of the BOARD.
Whatever his views may have been he
has been unable 10 enforce them If his
two associates refused their assent.
The commission is authorized III suit
able proceedings before it to fix maxi
hum rates OF freight. Whenever this
has been attempted by railway commits
sions or legislatures the railway repre-
seiitatives have always argued that the
roads were entitled Of right to earn a
/ reasonable return on the capital invest
ed, and they have shown the cost of the
roads. their capitalization in stocks and
bonds, and insisted that their rates
should earn a return on this cost regard
less of all other interests involved.
When it is proposed to %natiOnaliZe the
railways we hear the same argument
used against il. and the entire capitali-
cation of the companies, amounting to
some ten thousand million dollars. is
presented as an ~insuperable obstacle, as
if there were no other criterion of values
than those created by the companies
themselves.
Gen. Becker believes that there are
other considerations thar cost in fixing
rates. As commissioner he attended
the leSt meeting OF the railway COM
missioners of the states in Washington
i'll April. 1898, and when the veXed
question of what are reasonable rates"
came up for discussion, a question as
vague as what. in criminal trials, is a
reasonable doubt" the general gave
his views. AS they are so different
from those given by his fellow mem
berS. and as they are so sensible. we give
his remarks. asking the attention to
them of those citizens OF the state who
may think or may he told that he is a
representative of the railway corpora
tons on the board.
The general said: NOW. sir. l am
II of those who lay this down as a
fundamental proposition. that. in the
first place, money invested in railroads
is 10 more sacred than money invested
in any other branch Of business, and is
entitled to no more protection than the
money of any private individual
in this country. Therefore, 1 ob-
ject in the first instance to an
inquiry Oh the part of any commission
in this country as TO what a railroad
costs. l do not care what it costs. Ii
may have been econo mically built; il
may have been ~eXtravagantly built. |
wOnld never inquire now many bonds Il
railroad company has issued. They
may issue all the bonds they can sell for
all | care. That makes no difference.
The men who invest their money in
those bonds, if it is a good investment,
will get the benefit of it. and if it is &
poor one they will Iose their money.
The same with reference to capital
stock. L should not inquire what
amount per mile a railroad had invested
in capital Stock. They may issue all
the stock they please, and water it al
they please. so long as they find men to
buy it. 1t is their lookout whether they
have bought good stock and paying
stock. or whether they have bought poor
stock. And l will 90 still farther and
say that the expense which the railroad
company is at to carry the freight. or tc
manage its business affairs, is a matter
which does not enter at all into tho
question of what is a reasonable rate.
'tt will be remembered that in this
thing of issuing bonds and If issuing
stock the public have no word to say
whatever. We have NJ restraint or
control in these particulars over the
different companies OF this countr V; We
n ave no restraint or control over thu
expenses of the railroads of this cOun
try. Some are economically managed
and some are ext %ravagantly managed
We all know about the large salarie.
paid to railway officials, salaries that NJ
other business in this country cOulC
pay. And are we to say that the peo'
pie are to be taxed forever to pay these
~eXtravagant salaries, to pay tile inter
est Oh these b~ondS-the proceeds Of
which have been ~sQuandered or stolen
or the dividends upon stocks which
have been watered over and owe
again? l don't believe there is a freight
agent in this country who could tel
how much capital stock is issued or how
many bonds are issued by his company.
Now, why should we care about ii? l
l were in the position of my friend fron
South Carolina l should let those ques
tons go.
when we come to consider the ques
tion OF a reasonable rate, we look at j
from the railroad standpoint, not from
the standpoint of the shipper, and w
are apt to forget the interest of the ship
per. Now, there can be a railroad rate
which will crush the farmers, and which
will crush out any industry, and it may
De said that 1t is necessary In order t.
realize, first, the expenses of taking thu
business: second. the interest Oh bonds,
and third, the payment Of expenses O.
operation. Is it necessary to place sucl
a rate upon the products of the country
that every farmer will be rendered
pauper? don't believe the railroad.
will he justified in demanding a rat'
which will crush out the industries O
the country.
Now, / don't know that / have giveI
my friend from South Carolina any in
formation upon this subject, and l dom
know that the commissioners here pres
ent will accept the views l have given,
but they are views l have long enter.
tanned. l object most ~strenuously. as {
citizen, against any form of authority
which undertakes to say that the people
of this country are bound forever to pay
the interest upon tine bonds of any rail
road company by freight tariffs, or the
dividends upon any stock by freight
tariffs. L think that in looking at the
question of reasonable rates we should
not look at it from that standpoint, bu
we should look at it from the standpoint
of a man who pays the freight, and see
whether his business will justify it. "
"FORM, RIFLEMEN, FORM
The state convention has named tn,
gentlemen whom it commends to uht