The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-05-05
MORTON RAILROAD
SPEECHES PUZZLE
Secretary of Navy Says They Rep
resent Attitude of President
Toward Rate Questions.

Washington, May 5.-There has been
a strong undercurrent of speculation
among persons interested in the rail
road-rate question as to the real sig
nifcance of Secretary Morton s speech
es before the American railway appli-
ance exhibit. $3.50.
In the first speech Mr.. Morton de-
clared that railroad rates were low,
and complaints of unreasonable rates
+ to railroad men always received prompt
and satisfactory attention. He said:
Morton on Freight Rates.
] The story of the transportation of this
scountry and of the improvements III
Transportation facilities is the history OF
sAmerican progress. 1t is no exaggeration
ito say that the prominent commercial po-
ysition of the United States in the world
to-day is chiefly on account OF its low ran
road rates, and 1t is not at all out or the
way for me to say that If 1t were not Tor
american railway appliances, the cost OF
transportation in this country would not
today be as cheap as 1t Is.
The railroad freight rates in the United
States are low. No other country has any
such cheap carriage of goods. There are
very few complaints of rates In this coun-
try, because they are too high. Com
plants of extortionate rates are the ex-
!ception, not the rule.
Rates Lower Than Elsewhere.
Rates are lower in the United States
than anywhere else In the world. lhey
probably aggregate 40 per cent lower:
This alone is something to be PROUD o.
but coupled with the fact that with the
lowest rates in existence the wages palu
Inv American railroads to their employees
anproximate at least SO per cent more
than the wages paid to railroad men III
Sother countries and considered 1ufthef
with the fact that the American railways
probably pay higher prices tor materlais
than any other railroads in the world only
serves to emphasize the triumph IN trans
fportation which has been achieved III
5America.
] # has been my observation that COM
plants Of unreasonable rates u lanl s
men always receive prompt and satlsfac-
tory ttention. While in sense railroad
characterization is a natural monopoly, III
"a broader sense it is all competitive. Mar
5lzet competition prevails everywhere ano
Tis always a controlling force in rate
making.
Admitted Abuses.
{ Tn the second speech he admitted
there had been abuses IN the transp9r
/ ation business, which, fortunately
were growing less every year, tho there
still remained here and there preferen
5tial rates which were in favor or Ger
s tain large shippers anu WHICH so0a
4 "This is the condition Of affairs,
Secretary Morton declared, (which tn
nresidenf is doing his best to remove
In addition, Mr.. Morton stated tina
the s'private side-track arrangements
}bv which unfair inside rates have peer
senioyed by some of the big lndqstr1e
fair return on private-car Investments
3payment of commissions OF various
sorts or rebates, or preferential rate
Gin any form, ought to be dlscontlh
1lued.O
Federation of Mr.. Morton,s state
5ments cannot be made too often, pc
cause he declared they represent tn
latitude of President Roosevelt.
President Roosevelt's View.
1t is worth while to compare MI
sMorton s statement with what Pres]
dent Roosevelt said in his last annua
message:
J. VFor some time after the enactmen
of the act to regulate commerce 1t re
act conferred upon the Interstate com
;merce commission the power, after
had found the challenged rate to be u1
reasonable, to declare what thereafte
should prima facie be reasonable MAJ
Simum rate for the transportation i, IN al:
pute. The supreme court finally rf
solved the question in the negative, $
that as the law now stands the commit
sion simply possesses the bare power t
.aenounce a particular rate as unreaso1
able.
VWhile T am of the opinion at pre-
5ent it would be undesirable, if it we1
not impracticable, finally to clothe tn
commission with general authority I
fix railroad rates, [ do believe as a ia
security to shippers the commlss1o
given rate has been challenged, an
after full hearing found to be. unre'
jaonable, to decide, subject to ludici:
l-2-3