The pioneer express. [volume] (Pembina, Dakota [N.D.]) 1883-1928, 1902-06-20
THE He NATIONS PROSPERITY
PRESIDENT j. ], HILL TAKES 4 GREAT SPEECH
Commercial Expansion the Text 81 an Address
Before the Illinois Manufacturers Association
II Which He Shows the Part Taken by Railroads,
demonstrates Why There Must Be Competition
Between Them, and Indicates the Evils of Gov
eminent Ownership

SCHOOLS, no other single work. enters into
the welfare and happiness Of the people
OF t me whole country to the same extent
made it possible to occupy the enormous
stretches through the interior of our
country and people them with cities,
While the railways have to answer for
many mistakes Of Judgment, or of in
tent, on the whole the result has been to
far, the cheapest system Of land trans
portation in the world. In England the
average moyns amount taI paid BY the shipper for
miles Is s2sS; in France Sh 10: h IN ansa
ira $l9o; in Germany, where most of
me me railways are owned and operated by
sme goyernment, si.s4; in Russia. also
ments are carried under conditions more
similar to our own rnan IN any other
ff66 a ITy,t as respects long haul. $170; in
Is cents, or less than 40 per cent of the
average cost in Europe. And this is done
Mn1ie every article used by the railroads.
try than It costs in Europe, with the ex-
ceptlon of coal and right of way. Wages
IN n the United States are. as a rule. more
the United States is constantly increas-
Ing. Take, for instance, the material in
an an ordinary box car. the cost of which
over 90 per cent. You gentlemen s whose whose
manufactured articles are sold through
OUT the country are always able to base
your selling price on the cost of produce
ton. and when your raw material and
labor increases the cost, your prices are
advanced, but. notwithstanding the
enormous en- n.ol advance in wages, in material
OF every KIND, the rates of transportation
In the United States have gone steadily
gown IRON year to year until they are
oy comparison SO much lower than those
comparison between them,
II these results have been accomplished
99nder all the changing conditions of
financial prosperity and adversely in the
past thirty years, have we not, as ma
tlon, reason to rejoice in what has been
accomplished rather than to seek to de-
Stroy or appropriate the means which
have brought about these results?
When we consider what has been ac-
ffp6 n ast ny the railway companies in
rate of transportation which prevails, the
third Of what it was thirty. years ago, the
fifty or more to three, the increase by
thousands of through routes and rates,
the, me improvement Of facilities for trans
minals, has not the country abundant
reason to- congratulate itself on what has
been accomplished? And I will say fur
by the railway companies in their efforts
to serve the public and help themselves
rather than by any legislative or other
interference INT, The railways of the coun-
try are subject to the interstate com
merce law. It is said that carriers do
not observe the law; that rates are UNI
reasonable a that the public are oppressed.
claimed, out of the violation of the law.
government ownership is suggested by
some, and an increase of the power Of
the interstate commerce commission by
others.
Government ownership means the con-
trol and operation of railways by govern
menu oMclals. mere statement of the
proposition arouses in the mind of al
most every thoughtful man the fear that
such power would end in the destruction
OF the government itself.
Price of Transportation.
# the earnings which the railways are
entitled to receive, We're to be Terived
solely from traffic beginning and ending
Ont on their 81 re respective l:es the rates or
be must higher than it is. The interest
OF the public served by the railways is
largely IN the increase of the volume of
the lines Take, for instance. the lines Of
the Great Northern and Northern Pacific
from Lake Superior and the Mississippi
river to Puget Sound. All the interstate
freight producing area south of Lake SUI
perlor and east of Chicago must come to
them across the lakes. which are closed
around the south end of Lake Michigan
py way Ct Chicago, To increase the vol
ume OF traffic and thus be able to reduce
share of the interstate traffic from the
territory named and must also be able to
reach reach, territory furnishing market for the
turn freight to be transported over their
!ineS and by steamship connection with
the Pacific coast terminals.
investment by those interested in the
territory served by the lines, in increas-
ing the th volume Of traffic and in reducing
rates will be lowered
II the question of the ownership of
s STOCK was left to the public served by
would it not be for the interest of the
public to have such ownership placed in
the hands of those who had acquired it
directly connected with the building IN
OF the lines and building up the territory
served by them?
Railway Competition.
There has been during the past year
way competition and a large amount Of
volunteer literature has been written on
the ae, subject tSt It Is always safe basis to
any length Of time If the result Of its
transactions is loss, and this Is equally
true OF your business and Of that Of the
nation can afford to build up it's COM
merce on the foundation that railways
viii destroy each other. for the general
cases in the past and the roads Which
have followed this course have gone
through the. portal of bankruptcy into
the hands of rival owners, and, in some
cases, into the hands of owners whose
greater interest Is in other directions.
and whose object in obtaining them has
been more to restrict the growth Of the
country than to increase It,
Competition In railway rates Is either
active or inactive All railway rates are
the subject of conference between the
lines interested, followed by an agree
ment as to rates, and the conditions Of
the business Of the country demand that
rates are by law made public, and what
ever rate Is adopted by one road must be
adopted by the others, Or they will lose
their share of the traffic. In this there
ts no active competition. When COMPETE
tion Is active, tariffs are disregarded ard
private rates are made toelarge shippers
and rebates paid, amounting, as has been
published, to enormous sums in the
yearly aggregate. To prevent this active
competition, both the federal government
and the several states have enacted laws
which have been dead letter on the
statute books until public opinion has de- |
manded that the various commissions |
take some action under the law. The re- |
cent activity of the interstate commerce
commission has resulted, I believe, to q
large extent in correcting this abuse. and |
IL fhav nit, Il