Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-03-11
| TALKED ON RAIL WAYS
Meeting of the Economic Club
at Boston Yesterday.
Mr.. PROUTY'S ADDRESS
SPOKE IN DEFENSE OF THE PREsI-
DENTS RAILWAY POLICY.
Defined Position Of the Railroad Com
panies and What They Hoped
to Attain.
Mr.. PROUTY'S ADDRESS

1.-The Presidents Railroad Policy was the
general subject of discussion at a dinner
of the Economic Club of Boston last night
The principal speakers were Judge Peter S.
Grosscup of Chicago; President Davil Will
cox of the Delaware and Hudson River
Railroad Company, and Interstate Com
meree Commissioner Charles A. Prouty.
Each commented at length upon President
Roosevelt's views regarding the regulation
of interstate commerce rates.
Mr.. Prouty's Address.
Interstate Commerce Commissioner Chas.
A. Prouty spoke in approval of what he
termed THE Presidents railway policy"
Taking up the matter of rebates, Mr..
Prouty asserted that the Willingness of the
railways to assist in their adjustment, as
voiced by President Spencer of the South
ern railway, was far from being the sur
| render of cherished privilege. On the
contrary, he declared that 1.-The rebate is
aid always has been the most deadly en-
envy of the railway itself.
The traffic manager of the Lake Shore
and Michigan Southern railway stated I'M
der oath four years ago that his company
had paid back to the shipper in very many
instances 10 per cent of it's gross earnings.
The continual effort of the best railway
thought has been to stop the rebate. What
L desire you to clearly apprehend is that
when the railways of this country offer to
cooperate with the President of the United
States to put an end to these practices.
they are giving up nothing of value; upon
the contrary, they are seeking from the
law protection against themselves which
they have never been able to secure by vol
untary action"
Mr.. Prouty cited some specific instances
of the operation of the rebate system as
disclosed by the Investigations of the inter-
state commerce commission and then took
up what he characterized as 1.-The most
serious feature in this whole problem of
railway regulation, the imposition of rates
through the medium of railroad monopoly
which are in themselves too high
Conditions have again changed in the
last eighteen years, he said. ''Competi-
ton in the furnishing of public utilities like
railway transportation never has had and
never can have but one result-combination
AS the price of continued existence the rail-
roads of this land have parted with their
individuality. BY various changes. all tend
ing in the same direction, there has grown
up a union of railway interest which pre-
vents further suicidal competition IT is
today familiar knowledge that a half dozen
railway magnates control 10000 of the
zoo,GOo miles of railway, and that the re-
naming mileage is largely at the mercy of
these great systems.
Railway Imposition.
1T is sometimes said that these rail-
way magnates can impose upon this coun-
try Whatever freight rate they choose.
NO statement could be more ridiculous
Competitive transportation and CONNER
cial conditions fix and absolutely limit
the freight rate which could be imposed
In many instances if a single individual
owned and controlled every railway in
the United States.
When grain is once at Chicago or Du-
Iuth the water determines the rate to the
seaboard. The industries of New Eng
land cannot exist unless the raw material
and finished product move at extremely
low rates. But what the railroads of this
country can do is to impose in many
II farly hi Il
unjust rates. What they are doing is to
gradually advance whatever rates are
susceptible to that process.
1t is asserted by railway representa-
tlVes that there are today complaints
of unreasonable rates. The mental pro-
cess by which these gentlemen reach that
conclusion is somewhat difficult to appre-
bend. 1t is well known that the inter-
state commerce commission has no power
to correct an unreaSonap.a rate. 1t can
only investigate and recommend. If a
complaint establishes the justice of his
cause he is not certain of any relief.
Nevertheless there are actually pending
before that commission at present COM
plants where the only issue is the rea-
sonableness of some advance in freight
rates in which those advances add many
millions of dollars to the net revenues of
the companies which have made them.
Remember that those advances, if
maintained, add upon a per cent basis,
to the value otthe railway twenty times
the amount of the annual advance. 1 can
say to you conserVatively that the right
to make the advances drawn in question
by cases now pending before the commits
sion means more money than would be
required to construct and equip every
railroad in New England.
Railway Tariffs.