The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1901-07-06
Prominent Railroaders Ap-
prove Community" Plan.
TO BUILD UP THE WEST
They Believe Any Other Plan Would
Mean Financial Loss.
NO FAvoRs TO BIG SHIPPERS
A Prediction That the New Plan
VIII Be an Advantage to
the Small Patrons.

The community of interest" idea in
western railroad operation which has
brought the vast systems of the Great
Northern, Northern Pacific and Burling
ton properties under one financial man
agement is regarded by far-seeing traf
fic men as the grandest thing ever accom-
plished for the development of the north
west. They see in the great triple alli
ance" a final settlement of the vexed
question of rates, and the placing of all
traffic matters upon stable basis. Under
the agreement which binds the three
properties together they see solution of
all the traffic problems of the country
once the principle of financial combination
is understood and applied.
One of the most conservative traffic men
in the United States, man whose opin-
ions are entitled to great weight, dis
cussed the matter to-day. His name is
withheld for obvious reasons, but his OBJ
servations are based upon a thorough
knowledge of western traffic conditions.
and will be found extremely interesting
He said:
To Build Up the Country.
The northwest will receive mighty i'm
petus as a result of the Burlington deal -
/ can see no possible harm In the agreement
by which the properties are to maintain sta
HE rates and develop the vast northern coun-
try west of the Mississippi. Why, what are
Mr.. Hill, Mr.. Morgan and the other financial
men associated with them trying to do?
Simply this: maintain rates, prevent cutting
and slashing OF tariffs, reduce expenses by
Topping of needless employees and build up
this wonderfully fertile section. Where are
the millions yet unborn to go? Not to New
England. not to Colorado or other unpro-
ductive sections, but to the great west and
northwest where millions of fertile acres
are waiting to be cultivated. Now, is it con-
ceivable that they are short-sighted as to
institute policy which will retard all devel-
opment; that they will attempt to impose
unreasonable freights in all this territory and
conduct their railroad properties in a way
TO antagonize people? This is the last thing
they want to do. All they want is permanent
. rates, and I tell you that when the COM
munity OF interest principle is thoroughly
established in this country the big shipper
will have no advantage over the small ship
per. The poor man will not have to pay all
the freight, he pays all the taxes We
have come to the age Of ''one price rates
The Disposition on Rates.
To show how foolish 1t is to suppose that
a gigantic traffic robbery is contemplated by
this union of interest. let me cite one fact
which is a representative one. In Iowa where
rates fixed by law based upon a classif-
cation of the roads according to their earn
ings the maximum rates permitted the rail-
roads by the law have never been demanded.
mucn as the law allows them to charge.
as much as the law allows the tmo charge.
/ have in mind one Iowa road which was in
formed not long ago that because its earn
ings had fallen off it was entitled to an ad-
vance in rates of something like 171A per cent;
but the management refusd to impose the
higher rates. The reason is the road is trying
to build itself up by building up industries
and other business along its lines. The rates
are already high enough in the opinion of its
officers. This maximum rate scheme is treat
ed in identically the same manner in every
state where il has been adopted by state legs-
latures.
We hear a great deal about employees being
dropped by the thousand Well, things have
not yet progressed that far. But supposinl
a lot Of unnecessary men are dropped, fol
example the ticket agent who wants to sent
you to Omaha via Kansas City. or the fellows
whose time is occupied in manipulating rates
in juggling, cutting, lying, deceiying and il
trickery of all sorts Supposing the whole
thing is brought down to a common-se
basis by men anxious to build up, not destroy
to encourage enterprise, not to frighten people
out of it? Why, the quicker air of the roads
are brought int such harmonious relation
ship the better.
The foregoing observations were list
ened to by prominent northwestern rail-
road official who has been identified with
western roads in one prominent position
or another for thirty-fve years. He has
had, therefore, exceptional opportunities
to mark the effect of legislation on rail
road interests, and his remarks in this
connection are highly interesting. He de-
clares that granger" legislation is alone
responsible for the formation of trust.
and railroad combinations. He said:
Legislation Versus Combination.
1t is an inevitable result of anti-corporatiol
legislation, by which states have sought t
increase the liability of railroad corporations
to regulate their earnings and business, tha
the roads have bene forced into combination
to protect themselves from ignorant legis
lators. What has become of the local rail
road, the road projected by the people O
small towns? 1t is no more. 1t cannot com
pete with the great interstate railroads /
is handicapped by local state legislation, an
its promoters find it convenient or necessar
to let it be absorbed by the larger corporation
with its unlimited capital, its superior track
and equipment, which can do business unde
unfavorable state laws until they become S
offensive they can wipe them out. They ca
do it. and they do do it, for they have tn
money at command to, well, say, regulate
legislatures.
have no faith in the ability of any stat
either to prevent consolidation or control c
corporations in the management of their bust
Eess. Anti-corporation legislation has bee
the curse of the producer and of the con
sumer, and the salvation of the big corpora
tions
The 'LOcal" Railroads Status.
repeat that the day of the local railroad
of the indepndent line is over. A line favor
ably situated may dominate things in II
own territory for a while, but its reign mu:
be of short duration 1t will either come int
tn fold or be coerced into submission. It
always possible, you know, to build parall,
line to assist in the regulating process. Stat
laws impose upon local roads every possbl
limitation, restriction and burden. But it
eyond their power to interfere with the intel
state roads