The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-02-25
TO RAILWAY EMPLOYEES
AN ADDRESS BY sENATOR-ELECT DE-
PEW AT CHICAGO.
He FavOrs Pooling Contracts and the
strengthening of the Interstate
Commerce Commission.


dress by Senator-elect Chauncey NJ. Depew,
of New York, tonight The speaker was
warmly received by his audience at the out
set and the expressions of approval were
numerous and frequent. He ~recounted at
some length the history of the railroad
men in this country and spoke of the power
they can WELD in politics when they are de-
termined upon the carrying of some meas
ure that they believe is for the good Of the
country or the betterment Of their own
condition. The speech, which was to rail-
road men only, and as a consequence was
somewhat of a technical nature, follows in
part:
The great change in the railways of to-
DAY and of the creative and settling periods
Is that individual ownership has disap-
peared. There is no railway system in the
country one-quarter of whose stock is
owned by any one interest. Any manage
which is free from rings or inside arrange
ments of any kind by which a few get rich
at the expense of the rest, will be continued
by the stockholders in office as long as the
returns are satisfactory. That management
must be something more, however, to re-
main in power than have simply satisfac-
tory returns. 1t must satisfy the public.
and it must have from its employees that
efficient and healthy service which comes
only from their satisfaction with their en-
ployment and devotion TO its interests.
When l first entered the service of the New
York Central Railroad the vast majority of
its stock was owned by one man and the
balance by a few hundred others. Now
there is a constituency of about fifteen
thousand; now its stock and that of the
other solvent railroads is owned by people of
moderate means and by savings banks and
by life insurance companies whose invest
mentS represent the hard-earned savings of
the working people.
EFFECT OF UNWISE LAWS.
Legislation on railway matters has be-
come not only of great moment to the stock
holders, but of much greater to the en-
ployes. When unwise laws injuriously af-
feet the operations of a railroad line the
manage at once calls together the members
of all the departments. He says: Under
the operation of this law our earnings have
been cut down-so much. That will prevent
our paying dividends or if the road is not
paying dividends: That will prevent our
meeting the interest on our bonds and our
company will go into the hands of a re-
ceiver. Now our official lives are at stake.
If the stockholders are dissatisfied the direc-
tors viii turn us out; If the road goes into
the hands of a receiver some politician may
be appointed by the court and he will turn
us all out. Where can we cut down eX-
penSes to meet this loss of net e~arnings?'
The only elastic thing left is labor. A
practical and horrible lesson was given in
1894, when 100. 600 men were dropped off the
pay rolls. That meant an incalculable
amount of misery. Railway employment is
q EOGA6 O1CLAOAA' AAC - LAAC W.
motive engineer, the fireman, the brakeman
and the switchman cannot readily adapt
themselves TO anything but what Is known
as common labor, and for that they are not
fitted.
Now, legislators and public men do not
mean to do injustice, except q few dema-
gogues. The rest are honest-minded to do
what is right. In States where the railway
prejudice exists they expect a railroad presi-
scrupluOus, and place little confidence in his
statements, but a committee of the en-
ployes, intelligently understanding the ques-
ton, would be listened to at once. They
would be listened to especially If the poll
ticians knew If these active, intelligent and
efficient workers., as all railroad men are,
in the political parties in their several dis
tricts meant business; that they proposed to
take the same care of their interests that
other labor unions do Of their interests, that
armer do of their interests, that bankers
do of their interests, that manufactures do
of their interests. 1t IS here where your
lead will be of incalculable benefit to the
members of every department of the rail-
way service.
POOLING CONTRACTS.
you asked me in your letter to say some
thing about contracts between railway COM
panies known as pooling contracts. / be-
lieve that the right of railway companies
to form associations and to enter into pool
ing contracts should be granted, but only
under the supervision of the Interstate COM
merce Commission L believe in strengthen
ing that commission, increasing it's powers
and adding to it's dignity, because of the
character Of the men upon it and the sub
jects with which it deals. The commission
should stand next in the confidence CT the
people to the Supreme Court of the United
States. A committee of Congress attempt
ing to deal with the questions of tariffs,
for Instance, a question which requires as
much expert knowledge and long training
as to be a professor of mathematics in tie
best college of the country, are wholly at
sea. They cannot judge how far a rate from
Chicago to New York is dependent UPON a
rate from Kansas City to New Orleans or
Galveston, or from st. Louis to Baltimore,
or from the Northwest through Montreal
Commission would be competent to decide,
having only this business and heing IN cen
slant session. Give them absolute pow er
over any pooling contract, and then this
Vexed question is largely removed from the
immature judgment of politicians and placed
in the hands Of a competent tribunal.
The interstate-commerce law was passed
to prevent discrimination. It's operations in
dictate the mistakes which a great, patriotic
and able body, dealing with a thousand
subjects, can make in providing ironclad
rules for the transportation companies. Be-
cause the conditions of our internal COM
merce and OF our export and import trade
through various ports and Canadian out
let's are constantly changing this situation
can only be wisely administered by a bu-
reau O. the government possessing very
elastic discretionary powers. The interstate
law was enacted to prevent dis
examinations, and yet it's operation has been
to create combinations and trusts, to de-
stroy the independence of the Individual. to
lnJure small places and small industries
beyond all other agencies combined.
Competition is the remedy provided by
the interstate-commerce law to prevent dis
ordinations. The object of the Trainer Of
that law was to stimulate the normal efforts
of rival lines to draw business from each
other. The commission and the author of
the law now frankly admit that the method
has intensified the evils it sought to cure.
Railway competition differs from that
known in trade. If a merchant or manu-
facturer lights a rival concern and has the
longer purse, as well as business brains, he
drives his adversary into bankruptcy and
out OF business, then buys up his stock at
ruinous prices, and, having a monopoly,
makes Up the losses of the contest by larger
sales and increased prices. But the State
fixes the passenger fares, and, under the
common law as TO reasonable rates, puts a
limit on freight charges. The semi-public
service rendered by the railroad ~justifes
these restrictions. When a railroad goes
into bankruptcy the territory of which it IS
the sole outlet has interests so great that
the courts VIII not permit its sharing the fate
of insolvency. The court runs it regardless
of its owners and for the public convenience.
HOW TRUSTS BECOME MASTERS.
THE big shippers are always seeking ex7
elusive favors, and they bargain with the
weak line for all their shipments. This fills
that lines capacity, and the other lines
maintain rates which will give some return
TO the investors in the property. The adj
vantages possessed by these favored ship
pers on the bankrupt road enable them in
the close competition of common markets to
defeat and absorb similar entprDrieeS in