The times., 1899-10-12
SPENCER ON THE STAND
The Industrial Commission Hears
the Railway President.
He Suggests That Licensed Easpec-
Ords be Authorized by LAW
Against Discrimination. But I'm Fm-
vor Of ConsoIidation-Free Passes.

President Samuel Spencer. of the South
Commission yesterday that it was his bs-
lief that rate discrimination was practiced
at the present time by many, if not all, of
the railroads of the country He urged
that steps be taken for the enforcement of
the Interstate Commerce law, which pro-
yides that railroads adhere to the pub
lished rate, and suggested that licensed in
spectors be authorized by the Government
to examine the books Of railroad COM
panieS for the purpose of ascertaining
whether the law was being complied with.
Those who violated the law, he declared.
should be prosecuted. and the responsible
ity for such violation should rest with the
president of the road and with its other
officers.
Mr. Spencer occupied the attention OF
the Commission during its morning ses
sion, and in many respects his testimony
differed from the statements of other rail-
road officials who have testified before the
Commission as to the railroad business OF
the country. The witness was an extrem-
ist, he said, in his opinion on the free pass
system. The practice of giving passes was
practiced to a great extent by nearly all
the roads of the country, and in his opinion
it was very hurtful TO legitimate railroad
business He even advocated making rail-
road officials pay their fare on their own
roads. Ticket scalping was denounced as
tending to lower rates, and in that sense
a violation of the Interstate Commerce law.
1t was a means of depicting the treasures
of the railroad companies of the country.
he said and should be regulated by a spe-
cial statute.
Railroad consolidation and combination
was favored by the witness. Ii not only
was beneficial TO the roads, but tended
to make rates stable. An instance OF the
beneficial results of consolidation was given
oy the witness in his own company. Five
years ago the roads now under the con-
troll of the Southern Company were under
thirty-five or thirty-six separate corpora
tions. They were all in the hands OF re-
ceiyers and not in a condition to reduce
rates. Since the consolidation took place
The rates on these lines have been re-
duced 7 per cent.
Mr.. Spencer said that his road, doubt
less. had lost some business by absolutely
refusing to discriminate in rates in favor
of certain shippers, but on the whole he
thought the business of the company was
better by having pursued that policy.
There had been recent great revival of
business on the Southern road although
not equal to the increased carrying trade
in the West. The Interstate Commerce
Commission had resulted in accomplish
ing much good, in the opinion of the wit
ness He, however, did not favor allow
ing that body the power to fix reasonable"
rates, as had been suggested, but said
such questions should be referred to a
regular court of law. Government owner
ship of railroads. Mr. Spencer said vas
impractical. 1t might, perhaps. result in
good in some ways, but on the whole,
he thought private enterprise would be
more conducive to the good of the country
President Spencer was not opposed to
the organization of his employees. He said
the Southern road employed upward OF
10000 men, and that their wages ranged
on the average with other railroad en-
ployes of the country. There were, he said,
a considerable number of colored firemen
employed by the company. but it was not
their policy to make engineers of these
men, and they were paid about 10 per cent
less than the white fremen of the COM
pany.
Senator Kyle, Chairman of the Commits
sion, who has been in attendance for soma
days past returned to his home in North
Dakota yesterday, where he will remain
until November