The Montgomery advertiser., 1905-10-24
SPENCER TALKS RATES
PRESIDENT OF SOUTHERN DIS
 CTssEs ROosEvELT's POSITION
sreerh oS the Chief Executive nt hhi- eiwh shows He Will Not insist on the Esch-Townsend
 Bill.

Washington, Oct 2S--Samuel Spen- .nr president of the Southern haAi way made a brief stop In Wasnihsto" Tonight on his way South n eNp5s,s ing his views on President hoosest h.ts.r recent speech on railroad iesIsat nos at Raleigh. N. C.. MT. spencer. ,.ing taken a prominent part in represen,.is ,hn raiiroad's attitude on rate lesisia-
 .srbe Presidents speech indicates ,h.t he Ia not disposed now to lnsist that the power over rates wn,on r
 fovors should be exercised oy the IT. ,, .arstn+e Commerce Commission, put oS .s,. aar,,nistrative body Again in the PoteIeh speech the President advocates that thc administrative body shali have mower after complaint ana henI
 inc to fix only a maximum rate, no' nm absolute rate, unalteraoie
 after by the carrier. as provloeu tot in the Esoh-Townsend piIL . AZ. ,nrently follows the opinion or tne Al. torney General of May in wnicn U ,vas held that Congress could oniy en. ,,ou,er commission to fix maximum yates which 1t regards as just ana rea- sonable. .S. txvo nositions Is vital. To hx aosolu.o pa.as ,,naIterable by\ the carrier Tn ,nanv cases. Is to determine dehniteiy and arbitrarily by governmental UT hnnaI the relative advantages or com netting cities or regions TO presolioS ma xIn,um rates only leaves the carrle,, free to make reductions and may. anu generally will. result Tn adJuf.IeHess ss which will bring down whole t1ers oI rates. leaving the relation of rates as tbev were and entailing enormous losses to the railways.
 "rSor instance, an adjustment of rates ,,, Southeastern territory that wouio he more favorable to Cincinnati. Cni- cs1o and St. Louis as compared with ,hs rstes from the Atlantic seaboard eit;ee could not be successfully made hv governmental agency limited 10 | tbe making of maximum rates, Tor the reason that if it should be ordered | that the rates from the middle Wes- | tern cities should not exceed cer-
 tain maximum. the railways . rom ,,nss .ne l Eastern cities, or the water mes.
 TnnI6 still be free to lower their rates 1 anS thev would be forced to do so Tn 1 order to retain their business ana 10 nreserye the business of the cites oe- nending upon them for transportation l facilities. ,.,..an- .,aii,, the same relative adjustment or ] tbe rates that had existed before the ] tssrance of the order would be re-
 storsd and no one would have received
 any substantial or lasting benent' It | te true the shippers rom DotH SoStio'A~ ! ,,o,,td have somewhat lower rates. out thev would be obtained at the price oI
 smcb inroads into the revenues of the oarriers that deterioration in service
 might result. = AL. .onztdars-
 .,on not only to the railroads, but to
 tnn sbinners as we'll can be apprecia-
 tnS at this time. when there Is car
 sIortare all over the country with
 sraJgbt congestion at many points. De-
 anite inc fact that the railways have Sspd. investing largely in extensions and I'eI,-rine peen ,.i enormous obligations for the
 i'nnose their facilities are not equal pPor tbe traffic demsnds upon them.
 These increased expenses still continue
 anS from the prestnt outlook must con
 anu aini,a for a long time. This will re-
 s,nire large additional sums of money
 aa,ttb which the railroad can obtain on. w, th rough earnings and the sale or
 y,, Iy securities. Governmental action
 li'n,,d naw render still more difficult the
 tssS of meeting the requirements or
 the public. a. pals,1h indicates
 tbat fine President favors giving
 ais1 the railroads more leeway than he
 tsorr1erlv so rr suggested, by not having the
 Io Lotn take effect immediately, but in
 raroa reasonable time. A reasonable
 st,aa sT. for a rate may mean time for