The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-09-11
ADDRESS ON RATE QUESTION.

j. v. Smith Argues Against Placing
Controlling Power With Commission.
John V. Smith, special counsel of the
Louisville & Nashville. and former pres
ident of the National Association of
Railway commissioners, delivered an
address at the annual meeting of that
body, which was held recently at Dead
wood, S. D., on the government control
of freight rates, which mirrored SO per-
fectly the opinions of the commissioners
present that a special vote of thanks
was passed and it was ordered placed
on the records in full.
While admitting that the granting of
rebates and special privileges on the
part of some railroads had given rise to
strong public feeling, part of which was
much of the complaint is directly trace
able to political Vaccinations and de-
clared that investigation will show that
the published accounts of corruption
have been grossly exaggerated. He sta
ted that the supervisory power now be-
ing exercised by the interstate commits
sion is sufficient to eradicate existing
evils and declared that 1t would be folly
to place final power in the matter of
determining rates in the hands of any
seven men, however conscientious ana
well informed.
In discussing the project to increase
the power of the interstate commission
Mr.. Smith said:
ITO place the rate-making power IN
the hands of the interstate commerce
commission would logically result in the
adoption of an arbitrary mileage basis
for fixing freight rates, which in turn
would result in the erection of Chi
nese wall around each industrial center,
beyond the bounds of which it would be
impossible to do business.
ut has also argued with great force
that to confer the rate-maktng power
primarily upon the interstate commerce
commission would impose upon that
though they be Americans, could per-
form under any conditions"
Summing up the results of the recent
investigation instituted by President
Roosevelt Mr.. Smith said:
'.First-It has been clearly shown and
proved by statistics which have never
heard questioned that the average
freight rates upon our American rail-
ways are, by actual comparison, lower
than any other country in the world,
and lower than ever before in this coun-
try.
s.Second@That the average pay of the
laborers on our railways is higher than
that of any other country in the world.
'sThird-That, of the total earnings of
the American railways 1880 per cent
goes for labor and 23.O4 per cent for capt.
tai; in England 27.02 per cent for Ia
Dor. 1902 per cent for capital; in Ger
MANY 1904 per cent for labor and 1902
per cent for capital. 1t was also shown
that for the year 1904 the pay of en-
ployes in the United States has absorb
ed AZ per cent of the gross earnings.
"Fourth-It was also shown that ac-
cording to the census and interstate
commerce reports the net income in the
United States from operation of agr1-
culture in 1900 was 8.04 per cent; from
manufactures, 1905 per cent; while the
railways have only yielded 4.06 per cent.
1t is also true that the farms and man
ufacturing enterprises owe their pros
perity to the cheap rapid and efficient
railway transportation. To reduce
freight rates below the present point
will be in direct conflict with the plain
decision of the supreme court of the
| United States.
"Fifth-That the average capitaliza-
| ton of the railways in the United States
| is $61, $780, as against s127,O96 in other
countries.
asixth-That instead of the ownership
of railways being concentrated into only
! a few hands, the report of the inter-
state commerce commission shows that
| for the year 1904 the number of stock
holders aggregated S27, 851, and the own
ers of railway bonds numbered about
700 900, making grand total OF more
4 million