New-York tribune., 1905-02-01
). SPENCER ON REBATES.
Head Of Southern Discusses Presi-
dent RooseUelt's Philadelphia Speech.

Samuel Spencer. president of the Southern
Railway, who their officially designated
spokesman, represented many of the leading
railroads of the country before the House
committee which has been considering the va
rious bills in regard to the regulation of. rates,
in response to numerous requests for an ex-
preston on the Presidents speech before the
Union League of Philadelphia. Monday night.
gave out yesterday the following statement from
his Office. No. SO Broadway:
It is strange to note tendency read into
the Presidents speech before the Union League,
in Philadelphia. and indeed, into his various
utteranCes the railroad question, attack
on railroads and railroad men. l do not so
construe it, This miSconception of the Presi-
dents purpose seems to to rest the
rather curious confusion In the public mind be-
tween the rebate abuse and the making of
rates two opposed things. which really have
no necessary cOnnection-which should be con-
sidered entirely separate
If there abuseS-and there undoubtedly
have been some-the railroads of this country,
I think I may safely say, unit In agree
ing with the President that such abuses should
be controlled. Any who will read the Ces
ttmony taken during the last few months before
the House Committee Interstate Commerce
will be impressed by the uRanirnity of state
ment of the railroad representatives of their
opposition to rebates and other Illegal abuses,
where such exist, and of their desire TO put
stop TO them. On this point there can be no
question.
The President is right, and the vast majority
or the managers or the railroads warmly second
him. when he recognizes that conscientious and
public spirited railway men should be protect
ed from illegal acts Of less scrupulous competi-
tors and from unscrupulous big shippers. but
the legislation now proposed for granting rate
making power to the Interstate Commerce Com
mission not only does not afford such protection,
but il necessarily visits OH the innocent punish
ment intended for the guilty.
UNDER THE TERMS OF THE STATUTE
IF there are abuses connected with private
cars. private tracks and similar matters these
also ehoUld he ren1edled, and this might .i
done by SubJecting these private car lilies aIL
private tracks to the provisions of the Inter
state Commerce law. Then, if a. criminal act
be committed il can be punished as other
criminal acts punished, under the terms
of the statute. but in this again, the mere
fact that such abuse exists is warrant
for assuming control Of railway rates. The
occurrence of robbery is not a sufficient reason
for saying that the government should virtually
take possession of all private property. with a
view TO protecting IT from robbers. Yet such
a proposition would be logical the sug
gestion that the prevention Of rebates and other
abuses would be secured by giving TO the COM
mission the power to fix rates.
1t is a great pity that the public has not bet
ter understanding of what is. after ALL the most
difficult, highly technical and laborious task be-
fore railroad men-the making OF rates A
man goes into a railroad Office and the clerk
turning 10 a tariff book, tells him the rate This
seems a simple transaction. but. as matter
OF fact. months Of work by many people at an
expense of thousands of dollars and years OF
experience. have been involved in the establish
ment of that particular rate Every railroad
man knows the great difficulty of securing ex
act Justice in fixing rates and experience Is
demonstrating that the rate which develops
trafffc-and therefore the rate which the rail-
road should prefer. from pure sef-interest-is
almost certainly the nearest possible approach
to justice. But the adjustment of rates in such
q way TO develop traffic is possible only at
the hands Of railway officials responsible for the
results, trained for years 10 understand local
needs and the limits of possible change in a
wonderfully and, necessarily, complex organi-
zation. With all these difficulties the Interstate
itself
mitted that excessive rates almost never exist;
and the success of the railways in maintaining
rates at a fair level is conclusively proved by
the fact that there has been established in the
courts. since the foundation of the Commission
no a single of rates unrea soma bic In them
selves
MAGNITUDE OF THE QUESTION.
am glad TO see that the President repea tedly
cautions against what he calls violent and
Ill advised action. and urges that the effort
TO make progress should be tentative and eau
tious." When realizes that. according to
the report of the Interstate Commerce Com
mission for 1908 there were then on file 2.196.-
$50 tariffs. Of which 1871 were filed during
that year. and that more than one-third or the
commissions clerical force or about thirty
clerks were constantly occupied in the mere
detail Of fling, indexing and furnishing hlorIAa
tion in reference 10 these tariffs some ldea or
the magnitude of this question may be sath-
cred
Commission, I desire TO add emphatically. in
behalf of a very large proportion OF the ran
wavs of this country-a very mucn larger pro-
nortion than | have any direct authority 70
sneak for but 7 can say ii safely-that theTe
is no difference OF opinion between the ralroaus
~ country the Congress and the President
on the subject that rebates are wrong and ina
thev must be stopped; that secret ana discrlm-
inaforv devices of all kinds direct or indirect
,,,,st Iy,eet with the fate. and, TO use the
president's own expression. the highways OF
trsnsnortation must be kept open 10 all upon
sa,aI terros" On that basis the railway conf
,srias are ready and anxious 70 aid and CO.
operate.