The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1895-08-15
REFORMS IN RAILROAD MANAGE.
MENT


managed, are capable of comforting the
greatest possible commercial and soclaI
benefits upon the community and upon
the human race, and they should thera-
fore be managed in the interest of the
whole people, but not by the governms ut
The quadrennial interruption of politics
and the numerous rivalries and jealousles
inseparably connected thsrewlth, would
in my opinion, play havoc with all the
economic and industrial advantages
though they are many-capable of being
derived from grand central and bureau
cratic system of government manag ment.
1 think protective system of commit
tees, chosen by the stockholders of every
railroad, to investigate the manag ment
and have its accounts audited periodically
by trustworthy experts upon a plan that
would exclude the possibility of collusion,
the reports Of these committees to be
chosen by said stockholders, at reasonable
intervals, ,--would reform, and, in time,
thoroughly eradicate, most of the evils
now complained Of, and make the rail-
roads the most potent instruments in
developing our material prosperity,
through our unlimited resources.
The period succeeding the last panic
has exposed more weak spots in railroad
management, probably, than any former
period. The management has in too many
instances been directed toward sustaining
the market value of the securities, in
stead of building up the intrinsic value of
the property. Borrowing money, at the
expense of the property, to pay unearned
dividends has played an important role
in the operation of creating fictitious
values, which have often acted like a
boomerang and demoralzed the specu-
lative market. This system is entirely
vicious, and will have no place in the
reformed managems mt proposed, by which
the public In general will have ample
means of discovering the true value of
every railroad property, The veil OF
many rotten schemes, so fruitful of bank
ruptcles, defalcations and panlcs, will be
torn away, and the financial status of
every property laid bare to public view
and open inspection.
or course, 1t will require some l5gis.a-
ton to accomplish all this, and 1t must
be Of more comprehensive character,
and more popular and benz ahcient in its
outcome than the Interstate Commerce
law, The clause against pooling in that
act must be repealed, and perhaps 1t may
be necessary to recast the whole measure.
l do not mean to dlsparage the legis-
lators in whose brains the law originated,
for recognize the imposslbllity Of fore
seing all the necessities that may arise
in human concerns; but several years
bitter experience Of the law In question
has left no room for doubt of its made
quacy.
Secrecy seems to be largely at the bot
tom OF bad management. If our national
legislators, instead of attempting leg.sla-
ton designed to regulate rates and inter-
nal management, as eXemplihed in some
OF the abortive provisions OF the Inter-
State Commerce Act, would profit by tn.
experience of Massachusetts,, they would
substitute for the Interstate Commerce
Law, a general enactment requiring, un-
der heavy penalties, the utmost publicity
in official reports OF railroad affairs. The
history of the Massachusetts, Railroad
Commission, which was first originated in
1869, shows what intelligent public opin-
ion, properly directed can do in. r.form-
irlg the abuses of corporations, 1t was at
first an experiment on the part of Charles
advanced Thought and large experience.
Its powers were gradually enlarged with
out becoming oppressive, and it has dows
more, perhaps, 10 soive the problem
OF so operating railroads as to meet the
wants Of the various industries and COM
mercal inter SITS of the state, while con-
serving the best interests fthe stock
holders and investors, thaa any other
scheme that has been tried,
One railroad magnate, C. p. Hunting
ten, thinks that consolidation Is the REM
edy carrying this idea SO far. in fact, as
to favor making all the railroads one
great trust, or not more than three con-
soiidations In all at the very outside; he
bellows that one would be best. Such
trust as he imaglnes would undoubtedly
greatly cheaper the cost to both produc-
ers and consumers, as he argues; hut it
would require lronclad legislation, strictly
administered. to regulate trust Of such
unprecedented magnitude and potency as
Mr.. Huntington approves. 1t seems evil
dent to me that either this plan OF Mr.
Huntington's or government ownership
would destroy competition; this would be
against public policy. and would eventu-
ally destroy healthy speculation and In
vestment. first bringing these operations
to genral condition Of stagnaslOn. All
other business, in my opinion, wOuld
suffer n sympathy.