The Neihart herald. [volume] (Neihart, Mont.) 1890-1901, 1898-07-09
HON. M. D. INGALLS,, PRESIDENT OF
THE "RIG EOIIR

THE BIG FOUR"
commissions of the different states. 1t is
a body that is supposed to stand as an
arbiter between railroads and the people,
as a friend of both; a body that ought to
and does have great influence, and espe-
cially in reference to legislation regard
ing railroads. If this audience should
agree upon any legislation in hat respect
that was needed, I presume there would
be no difficulty in inducing yonder con-
gress to enact 1t into law, and believing as
1 do that it is essential to the public in
terest to secure legislation, 1 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 a 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 countSR.
For 80 years a contest has been waged
In legislatures, in ongress, and before
the courts, by the people on one side who
believed that railways were public cor
porations and subject to control by the
power that created them; and, on the
other hand, by officials of the railways,
who did not believe that such control was
legal or practicable. State after state
asserted it's right. These rights were con-
tested from one court to another, and
decided from time to time always in favor
VI the pCOple, ulueF certain restrictions.
1t finally eliminated in 1887 in the enact
ment of the Interstate 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 it is as
fairly settled by the highest courts in the
land that the legislatures of the states
nave 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 q fair return upon
their cost.
Railway had accepted the
situation, and were endeavoring to obey
the interstate m law and adapt
their management to it when, in March,
1897, a decision was rendere by the SUI
preme court which produced chaos and
destroyed all agreements. 1t was prac-
tically that the Sherman antitrust law,
so-called, which 1t had not been supposed
applied to railways, 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 maintenance of tariffs. In the
case brought against the Joint Traffic
association in New York, this view has
been combated by the railways and II
may be modified by the courts.
1T Is well, perhaps, that WI should
look the situation fairly in the face, and
while 1 do not care to be an alarmist, /
feel bound to describe plainly to you the
condition today, so hat you may under
atand tho nncaasitu for antfop Nauar In
the history of railways AVE 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 beer
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 fol
railway investors, railway employees and
the public generally. And heSe / wish te
say that this is not a question which
concerns railway investors alone. If II
was, you might say, let them fight II
out 1t concerns over and above every,
one else, the great public. One-hfth Of
our people are interested directly ir
railways. either as employees or employee.
of manufactures that are engaged in fur
nishing supplies to the railways. Car
any body polite prosper II one-ffth o.
Its number is engaged in a business tina
is losing money? The railways serve tn,
public in SO many ways that their pros
perity Is closely interviewer with thu
prosperity and comfort of the ordinary
people. One thousand Aillions Of dollar
were paid out last year by the railways
from their earnings to employees of man
ufactories in this country; 511 900, 600 o
passengers were carried; 1900 millions
were carried one mile; 765, 900, 600 of tons O
freight were moved; 5000 millions of toni
were moved one mile. Do you think tina
any interest performing such immen
service as his can be in difficulty ant
the balance of the country not feel it
Forty millions Of dollars we're paid on
for public taxes. Over three thousand
millions of dollars that have been invest
ed in railways have earned no dividend
for years. This is not water, as som
populist orator will say, but good. homes
money. These securities are held al
through the land, and their failure I
pau m rat.rp hos hrottObt dleoraan 80