Shiner gazette. [volume] (Shiner, Tex.) 1893-current, 1898-06-01
MANAGING RAILROADS
INTERESTING DISCUSSION OF
A BIG SUBJECT.
Hon. NJ E. Ingalls,, President of the
Big Four Railroad, Presents Some
Important Facts That WIN Interest
All.

All,
Hon. NJ e. ingalls,, one Of the great
est authorities on railway matters,
read highly valuable paper at the
recent convention of railway commits
sloners held in Washington, d. c. His
wise words will be read with interest
by all. The convention was called for
the purpose of considering questions of
great interest both to the railways and
the people of the United States. Mem
bers of the Association of American
Railway Accounting Officers were also
present and were invited to take part
in the discussion. Chas. j. Lindley of
Illinois. was chairman of the conven-
ton. Ohio was represented by Rail
road Commissioner R. S. Kahler and
Chief Clerk Ed f. Archer p. A. Hew-
it, auditor of the Big -Four, was one Of
the railway accountants present Mr..
ingalls, address is here given as being
a semi-official expression of the views
held by railway managers generally,
and as being also of general interest to
the public at large:
MIR Chairman and Gentlemen: am
very much obliged for this opportunity of
addressing you. l understand 1 have in
my audience the members of the inter-
state commerce commission and the gen
tlemen composing the various railway
commissions of the different states. 1t is
a body that Is supposed to stand as an
arbter between railroads and the people,
as n friend of both; body that ought to
and does have great influence, and espe-
cially in reference too legislation regard
ing railroads. If this audience should
agree upon any legislation in that respect
that was needed, | presume there would
be no difficulty in inducing yonder con-
Eress to enact IT into law, and believing as
l do that 1t is essential to the public in
terest to secure legislation, l am pleased
TO have this opportunity of presenting my
Views and endeavoring to enlist you in
the reforms which think are so vital.
We have reached u crisis in railway man
agement when something must be done
If we would avoid disaster, not alone to
the railways. but to the material inter-
ests of our country.
For so years a contest has been waSed
in legislatures in congress, and before
the courts, by the people on one side who
believed that railways were public cor
poratous and subject to control by the
power that created them; and, on the
other hand, by officials of the railways
legal or practicable. State after state
asserted its right. These rights were con-
tested from one court to another, and
decided from time to time always In favor
of the people, under certain restrictions
1t finally eliminated in 1887 in the enact
ment of the interstate commerce law and
since then there has been hardly a day
when some provision of that law was not
under consideration by the courts or by
congress, until now we may state 1t is as
fairly settled by the highest courts in the
land that the legislatures of the states
have control over railways with refer
ence to their local business, subject to
certain conditions, and that the congress
of the United States has the power to
regulate interstate business The supreme
court of the United States, which is the
highest .arbiter of these differences has
just decided that such control of the
states, or regulation. must be reasonable,
and that rates cannot be reduced below
a profit where the railroads can earn
their expenses and a fair return upon
their cost.
Railway managers had accepted the
situation, and We're endeavoring to obey
the interstate commerce law and adapt
their management to 1t when, in March
1897, decision was rendered by the SUI
preme court which produced chaos and
destroyed all agreements 1t was prac-
tically that the Sherman antitrust law
applied to railways. did apply to them,
and under the construction of that law
by the court it was practically impossible
to make any agreements or arrangements
for the maintenance of tariffs. In the
case brought against the Joint Traffic
association in New York this view has
been combated by the railways and it
may be modified by the courts.
1T is we'll perhaps, that we should
look the situation fairly in the face, and
while l do not care to be an alarmist, !
feel bound to describe plainly to you the
condition today. so that you may under
stand the necessity for action. Never in
the history of railways have tariffs been
so little respected as today. Private ar
rangements and understandings are more
plentiful than regular rates. The larger
shippers, the irresponsible shippers are
obtaining advantages which must sooner
or later prove the ruin of the smaller and
more conservative traders, and in the
end will break up many of the CONNER
cial houses in this country and ruin the
railways. A madness seems to have
seized upon some railway managers, and
a large portion of the freights of the
country is being carried at prices far be-
low cost. Other than the maintenance of
tariffs the condition of the railways is
good; their physical condition has been
improved; their trains are well managed
and the public is well served If a way
can be found by which tariffs can be
maintained and the practice of secret re-
bates and private contracts discontinued
the future will have great promise for
railway investors, railway employees and
the public generally. And here I wish to
say that this is not a question which
concerns railway investors alone. If it
was. you might say, let them fight 1t
out 1t concerns over and above every
one else, the great public. One-hfth of
our people are interested directly in
railways, either as employees or employees
of manufactures that are engaged in fur