Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1898-05-19
RAILWAY MANAGEMENT.
Address of Hon. M. E. Ingalls, to the
Commissioners Convention.
Questions Pertaining to the Conduct
OF Railways which Are of
interest to the General
Public


purpose OF considering questions of
great interest both to the railways and
the people of the United States. The
convention was addressed by Hon. NJ.
T. ingalls,, nigh authority in railway
matters, upon the establishment of
proper traffics, conduct of shippers and
the betterment of existing conditions
IN railway affairs, also the advance
ment of measures looking to the great
er comfort and convenience of the pub
&c. Mr.. Ingalls, address is here given
as being a semi-oficial expression of
the views held by railway managers
generally, and as being also Of gen
eraI interest to the public at large:
Mr.. Chairman and Gentlemen: I am
very much obliged for this opportunity of
addressing you. I understand have in my
audience the members of the interstate
commerce commission ard the gentlemen
composing the various railway commits
SONS or the different states. It is a body
tnat Is supposed to stand as an arbiter be-
tween the railroads and the people. as a
Irlend or both; body that ought to and
ooes nave great influence, and especially
IN reference to legislation regarding rail-
roads If this audience should agree upon
any legislation in that respect that was
needed, presume there would be no diff
-N-ANg All luuuClHS yOnOeT congress TO
enact II into law. and believing as 1 do
tnat IT is essential to the public interest to
secure legislation, I am pleased to have
this opportunity of presenting my views
ana endeavoring to enlist you in the re-
forms which / think are so vital We have
reached a crisis in railway management
Wnere something must be done if we would
avoid disaster, not alone to the railways
out TO the material interests of our country
For 80 years a contest has been waged
in ar,IG 49,
courts, by the people on one side who be-
neVed that railways were public corpora
lions and subject to control by the power
that created them; and, on the other hand.
oy othcials of the railways, who did not
believe such control was legal or prac-
tlcaole. State after state asserted its right
THESE rights were contested from one court
TO another, and decided from time to time
Always In favor of the people, under GER
tain restrictions. 1t finally eliminated in
1887 in the enactment of the interstate COM
merce law, and since then there has been
hardly 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 high
est courts in the land that the legislatures
OF the states have control over railways
with reference to their local business. sub
1ect 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 differ
ences, has just decided that such control of
the states. or regulation, must be reason
able, and that rates cannot be reduced be-
low point where the railroads can earn
their expenses and a fair return upon their
cost.
Railway managers had accepted the sit
uation and were endeavoring to obey the
interstate commerce law and adapt their
management to 1t when in March, 1897, a de-
cision was rendered by the supreme court
WI id cha nj Ill
agreements. 1t was practically that the
Sherman antitrust law, so-called, which
1t had not been supposed applied to rail-
ways, did apply to them, and under the
construction of that law by the court 1t
was practically impossible to make any
agreements or arrangements for the main
tenance Of tariffs. In the case brought
against the Joint Traffic association in
New York, this view has been combatted
by the railways and it may be modified by
the courts. But since that decision in
March, 1887, there has been practically a
state of anarchy so far as the maintenance
Of tariffs is concerned in large part of this
country.
ut is well, perhaps, that we should look
the situation fairly in the face. and while
do not care to be an alarmist,-I feel bound
to describe plainly to you the condition to-
day, so that you may understand the ne
cessity for action. Never in the history of
railways have tariffs been so little re-
spected as to-day Private arrangements
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 commercial 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 below cost. Other than the
oEr,4a - 10 A..
railways is good: their physical condition
has been improved; their trains are well
managed, and the public is well served. If
q way can be found by which tariffs can
be maintained and the practice of secret
rebates and private contracts discontinued.
the future Will have great promise for rail-
way investors, railway employees and the
public generally. And here I wish to say
that this is not question which concerns
railway investors alone. If it was. you
might say let them fight II out 1t con-
Germs over and above everyone else, the
great public. One-flfth of our people are
interested directly in railways, either as
employees or employees of manufactures
that are engaged in furnishing supplies to
the railways. Can any body polite prosper
IL one-f1fth OF its number is engaged in a
business that IS losing money? The rail-
ways serve the public in so many ways that
their prosperity Is closely interviewer with
the prosperity and the comfort of the
ordinary people. One thousand millions of
ways from their earnings to employees Of
manufactures in this country: 511. co., GOO OF
passengers were carried; 1900 millions
were carried one mile: 765. o00. 600 of tons of
freight were moved; $4,000 millions of tors
were moved one mile. Do you think that
any interest performing such immense
service as this can be in difficulty and the
balance of the country not feel it? Forty
millions OF dollars were paid out for pub
lie taxes. Over three thousand millions of
dollars that have been invested in railways
have earned no dividend for years This
II not water as some popuiist orator will
say, but good, honest money. These Sc
curities are he'd all through the land, and
their failure to pay any return has brought
disgrace upon US abroad and suffering and
home. A slight improvement in the rate.
which would be scarcely felt, would make
this investment good. One mill per ton per
mile or one-tenth of a cent, additional, last
year would have made $4,000 Increase in
net revenue, and this would have paid three
per cent. upon this invested capital.
These are the material sides of the Ques-
ton. There Is q much more dangerous
view, and that IS the Generalization OF the
men conducting these immense enterprises
and the want OF respect for the law which
is being developed by the present situation.
The trouble is not due altogether to the
provisions and the interstate commerce
Jaw. 1t has grown up from various sources
The panic Of 1893 and the loss Of business
for the next few years intensified the COM
petition between the lines; new avenues
were opened; the competition or the CUR
ports increased enormously; also that OF
the Canadian Pacific on the north. Alto
gether, these causes produced such sharp
competition, coupled with the decision re-
ferrred to OF the courts. that no under
standing or agreements can be made, and
have combined to produce the most COM
plete breakdown that has ever been seen