New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-24
DIR. SPENCER ON RATES.
Thinks Presidents Raleigh Speech
Indicates Change of Policy.

WASHINGTON. Oct. 23-SamueI Spencer. president
of the Southern Railway, made brief stop in
Washington tonight his way South In express
ing his views on President Roosevelts recent speech
on railroad legislation at Raleigh. n. c., Mr.. Spen-
Ger, who has taken a prominent part in represent
ing the railroads attitude rate legislation, SAID
The Presidents speech indicates that he is not
disposed now to insist that the power over rates
which he favors should be exercised by the Inter
tratfve body" Again in the Raleigh speech the
President advocates that the administrative body
INK Ty he hfter nv the Carrier as provided
% @ os 6,II This apparentIv
follows the opinion OF the Attorney General 81
cons f, ti en1poser Commission to fix
maximum rates" which it regards as just and
The difference between these Two Positions s IL, is
carrier, in many cases is to determine definitely
and arbitrarily by governmental tribunal the rela-
prescribe maxinum rates only leaves the carrier
FREE TO make FeqTe9s aHp bi6b n6 6rB down
whole tiers of rates leaving the relation of rates
they were and entains enormous losses TO the
For instance an. adjustment of rates to South
Cincinnati Chicago and St Louis as G9mPar pare
agency limited to the making of maximum rates.
rates from the Middle Western cities should not eX
coed certain maxima. the railways from the Eastern
their rates. and they would be forced to do so in
order 10 retain their business and to preserve the
business the cities depending on them for trans
o0rtaton facilities The result would be that sub
stantially the same relative adjustment of rates
that had existed before the issuance of the order
would be restored, and no one would have received
any substantial lasting benefit. It Is true that
the SINNERS from both sections would have some
what lower rates, but they would be obtained at
the nrice of such inroads into the revenues of the
czrrars that deterioration in service might result
Tho i1nnortance of this consideration, not only TO
the railways but the shippers as well. can be ap-
11racatrd at this time when there is shortage
an over the country. with freight congestion at
MANY Doints Despite the fact that the railways
have been investing largely in extensions and in
curing enormous obligations for the purpose, their
facilities are equal to the traffic demands upon
them These increased expenditures still continue,
and from the present outlook must continue for a
long time This will require large additional sums
of money. which the railroads can obtain only
THROUGH earnings and the sale of securities.
Governmental action would render still more dihl-
cult the task OF meeting the requirements OF the
The speech at Raleigh indicates also that the
V,ay than he formerly suggested, by not having the
rate take effect Immediately, but IN some reason
abJe time A reasonable time for Il rate may
mean time for a review of it by judicial. and not
administrative authority. II the rights OF property
are found to be involved: =,
The Fsch-Townsend BILL passed by the House
Of Representatives last winter would not only nave
e111feCred the roads punishment before judicial
hut the character of judicial review
TTonosad was such that they would not have had
for the courts would have been Drecluded from
Considering the reasonableness of the rate com
I,I,ine6 of and he rate ordered by the commission
IId have been set aside only if 1t had been found
} 70 Is to be enacted that VIII insure to the
,o3is a square deal that the opportunity for q
effective review OF the whole case by
he c6Irts should be provided for