The Savannah morning news., 1902-02-01
THE RAILROAD PROBLEM.

IHE hAILhUAU FhUbLEM.
1.-THE following address was made by
Mr.. e. D. Kenna, General Solicitor of
the Atchison, Topeka and Santa Fe,
before the Kansas City Bar Associa-
tion:l
Since railroading has become the
great business of our country. serving
and deriving support from all others,
we sometimes need TO be reminded that
the industrial phase of the railroad is
not the important one. True, as pri-
vate institutions, affording invest
ments for thousands and employment
for millions, railroad companies are
concerns of great consequence. A mill
lion persons work for them constantly
and 100000 depend on them absolute
ly, not counting their owners. More
than 100, 900 men work in the mines to
furnish them with coal, and still more
are daily toiling to supply the iron and
steel that railroads use. Three thou
sand square miles of land is laid bare
| each year to supply railroads with ties
| and lumber, equal to a stretch of land
| San Francisco.
These and many other workers who
furnish railroads with supplies must
themselves be fed and clothed. And
so, inI time, the expenditures by this
industry affect the income of nearly
every one. The ownership of railroads
also concerns vast number. When
we hear that a few direct the affairs of
all our great systems we are apt to for
th.ar
are more than 10000 stockholders in
one company whose line enters this
city, and yet of its securities no single
man owns a fiftieth part. Although
there are $4,000, 900, 900 of railroad secu-
rifles in America, / believe the aggre-
gate holdings Of no 1000 individuals
equal 81. .OO0, ,0O0, 900. And If inquiry be
made as to where the large majority
of such securities are held, we find the
life insurance companies own $54O, ,OOO,-
900 and hold $50, 900, 900 as collateral.
Therefore, every insured person is di-
rectely interested in the prosperity of
our railway companies. The next larg-
est class of holders are the savings
banks and trust companies, whose hold
ings, while unknown, certainly exceed
those of the life insurance companies.
AS witness the holdings of single saw
ings institution in the city of Chicago,
which owns over $4,000, 100000 of such
securities.
Original Idea.
The original idea was that railroads
were to be, as canals had been, high
ways any individual might use upon
the payment of toll. When this was
found Impracticable the carriers forgot
they were engaged in a public service,
and the people refused to recognize
that a railroad is in its nature a mo-
nopoly. AS the right to regulate was
not expressly reserved I'm any OF the
early charters, 1t was contended, with
reason. that no such reservation had
been made. Few roads would have
been built with private capital alone
had it been known that the time
would come when the people would
assert not only the right to make rates.
but to say that while the investor risk
ed losing his whole investment. he
would never be allowed to make over
per cent.
But with our prairies a waste and
our forests impenetrable; with the
riches of the Rockies lying useless, and
the most wonderful valley yet from
tier, 1t was not the time for the people
to startle capital with the warning,
you risk your whole venture, and
when II is made, we reserve the right
to say how much you may gain" Yet,
that was the time when the people
should have been frank. That they
were not, Is a charge of which they al
ways stand convicted.
But IL the people erred in the first in
stance. the railroads soon evened mat
ters. The people had been more than
generous. The railroads failed to ne
so Their claims, though not unreason-
able, were uncomfortable.
It is more than quarter OF GEN.
tury since the courts held that the
companies were subject to public regu-
lation And yet the evils set forth in
the first annual report OF the Com
merce Commission as being the reason
for its existence. tally exactly with
those stated in the last report as yet
prevalent. Inasmuch as the people
have failed so far in their efforts to
regulate the companies. and as every
remedy suggested except pooling, and
government ownership has been tried,
II would seem that only these OF all
recommended remain for our consider
alton and the latter we cannot seri-
ously entertain. except as final resort
II may be said the Commerce Commits
sion has not been given the power TO
Az rates. That II true. But nearly
every Western state commission has,
and n such power was the correction
claimed for II BY It's advocates, they
should be able 10 cite az least one In
stance where Il has been successful.
among the many where u has been
tried. The commission has said
the great, and 20 far irIemedial
evil. Is unjust discrimination. That this
class Of onense cannot BE- prevented by
giving 20 commissioners the power 70