Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-10-16
President Ingalls, Believes in Apply
ing 1t to Railways.
BEFORE THE INDUSTRIAL COMMISSION
Favors LegaIizing Agreements to
Maintain Rates.
LIN TON OF LINES

Mr.. Melville E. Ingalls,, president of the
Cleveland, Cincinnati, Chicago and st.
Louis and the Chesapeake and Ohio rail-
ways, was before the industrial commission
In the Bliss building, opposite the Capitol,
this morning.
Mr.. Ingalls, stated that he had been con-
nected with the management of railroads
since 1S1l The two systems under his
charge employ 10000 men. The maximum
days work in their shops was ten hours,
OFTEN nine hours and frequently eight
hours. The trackmen work ten hours, but
In the winter the companies are in luck if
they succeed in having them work eight
hours.
Mr. ingalls, submitted a statement reply
ing to number of questions being consid-
cred by the commission in relation to trans
portation. The three things that should
be considered by those framing legislation
Tor railways, he said, are the accommoda-
ton Of the public, the prompt payment and
welfare of the employees and proper serv
ice Tor all patrons, who should be served
Ialriy and well and at reasonable a cost
as Is consistent with the other purposes to
be accomplished, as stated above as well
as to obtain a fair sum to be returned to
the proprietors for their Investment.
Proper Return Investment.
Legislation in reference to railways" he
said, should be such as to allow revenues
sufficient (irsD to maintain the property
and the service, (second) to pay the en-
ployes, and (thtrd) to provide a sufficient
return on the investment. When these
three conditions are attained you will have
placed this large interest, representing
through it's employees and it's purchases at
least one-tenth of the population of this
country, in a sound and safe condition.
where as citizens they can perform their
duties to the republic and become useful
members of society.
development of the Railway System.
For half century the railways have
been going through a species of develop
ment AT first every community was anx-
lous to secure railway, and all manner
and sorts of inducements We're given It
was hazardous enterprise to undertake.
and nearly all the early promoters failed
in their undertakings and capital could not
be induced to enter the field without large
inducements; therefore, Spectators and
promoters seized upon the field, charters
were obtained aid sOlicitei from state CITY
ana town, bonds and stock issued without
much regard to values, and all sold or turn
Cd over TO contractors to build the railway
These contractors and promoters sold the
securities to the public. in most cases they
were lost, wiped out by foreclosure The
new owners and proprietors of the reorgan-
lied companies endcavored to earn an in
come upon thtlr investment in all WAYS
possible and this produced dissatisfaction
with the public The contest first began
as to whether railway companies were like
ether business enterprises, Independent and
Tree to purSu" their business charging what
they could get from the traffic and making
what they could.
Status OF Railways.
after many years of litigation the
courts finally settled the question, which
today is practically agreed, that railway
corporations We're public servants, receiv-
ing certain rights from the people, in con-
sideration of which the public had control
over their rates and charges always re-
serving the right which the courts pro-
tected, that there should be revenue enough
to pay a fair return upon the capital In
vested. State after state appointed COM
missions, who endeavored to control or in
duence railways in the interest of the pub
lie. The Massachusetts idea of commits
sion was that one should be appointed
which should have authority TO inquire and
report, and their control of rates and the
enforcement of their comma nds depended
more upon moral suasion than anything
else. Other states endeavored by legsla-
ton to absolutely fix tariffs and charges
The Interstate Commerce Act.
"As the country has progressed and i'm
proved the latter idea has been given I'M
to great extent except in more ignorant
communities and In cases where ii is used
for political capital. The wise and think
ing people stood aghast at the thought that
a few commissioners, selected usually for
political qualifications, could make, man
age ano control the tariffs upon which
This enormous business depended for it's
safe and prosperous conduct. Finally in
1856, the demand for legislation deyel0ped
into an act Of Congress, creating what
Is known ds the interstate commerce COM
MISSION which, with some amendments is
substantially as no
courts have decided that it's powers do
not extend To the making of tariffs but
In many other ways 1t has the broadcast
and most complete authority. This act
u Ghibited the pooling or division Of earn
ings, which had been the favorite method
of maintaining tariffs previous to that act
After the passage Of that law, however,
Icy agree meat and association rates were
still fairly maintained.
Effect of the sherman Act
Later. however. the Sherman antitrust
law was passed which at the time was sup
posed by many people not to apply to rail
ways, but since. by the decisions of The
courts, it has been practically decided that
it applies 10 nothing else but railways and
under the decision of the courts in the
trans-MiSsOGTi case it seems as if no agree
ment or arrangement or understanding of
any kind can be maintained and that there
is nothing left for the railways but an
archy. 1t left the railways in a most de
plorable condition, and during the years
1897 and 1898 the practice of cutting rates
and secret rebates seemed to run riot.
Move Against secret Rebates.
Late in 1898 and early in 1899, the inter
state commerce commission took up the
question with the leading railway managers
Of the country for the purpose of securing a
better maintenance of rates, to stop secret
cutting. and especially to prevent the pay
uent of rebates which it was supposed were
being paid, although no legal proof could
be obtained. This move upon their part was
most commendahle, and has worked out
with extraordinary results and has been
beneficial to the railways and the public
So far during 1850 there has been greater
freedom from secret rate cutting and re-
batting than probably has ever been known
before in the history of railways. This has
been done by the resolve of the controlling
officials that there must be a change, and
1t has been made easier by the fact that
there was a large amount of business Of
fering; more, in fact, than the capacity of
the railways to take care Of. A pride has
also grown up among managers In obeyfng
the law and disseminating such practices
and today where here and there a railway
manager is supposed to be paying secret
rebates he is not looked upon as in good
standing in the fraternity. How long this
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