The Ely miner., 1905-05-26
GOVERNMENT CONTROL.
President Elliott, of the Northern
Pacific, Says Arbitrary Rates
Would Be Unwise.

ton system, said in part to-day in an
address before the senate committee
ON interstate commerce.:
st have been engaged in the railway busi-
ness for nearly 25 years in the Mississippi
and Missouri valleys and nay remarks
will reflect the views formed during this
business experience by one who has always
tried to look at the whole subject of the
government and the railways in reason
able manner, not only as a railroad officer
and employe and as railroad owner in a
small way, but also as citizen interested
in the general development Of the west.
There are, of course, differences of
opinion about the relation of rates as there
will always be under any system. Railroad
business is conducted by human beings. 1t
is not conducted therefore with absolute
perfection in every detail. For the errors
made in the conduct Of the enormous rail-
road business of this country, the plan of
control and management should not be con-
demned anG GiSlocate6 any more than that
the general scheme of our government
should be condemned because there are
frauds in the administration of the land
and post office departments and ineficien-
cies in the administration of the govern
ment in places.
"One hears much comment upon the fact
that great fortunes have been made out of
the railroad business and those who COM
ment name a small number of individuals
who through superior ability, energy, fore
sight and hard work have built up large
fortunes. 1t is true that a few large for
tunes have been made in the railroad busi-
ness. Not more so, however, than in the
iron, coal, lumber and manufacturing lines
of commercial activity, if as much. These
fortunes are the capital prizes in the lot
terry of life that are open to every am
bilious American. But of the great army
of railroad owners, officers and employees,
very small proportion obtain more than
enough for their daily living, whatever
their position in society may be, and some
saving for old age and their children.
There is an erroneous idea that rail-
road rates are fixed arbitrarily and that
few So-called railroad magnateS' fix and
control all of the rates in the United States
and that their chief idea is to fix them at
high level. Nothing can be farther from
the truth. A railroad rate is the result of
large number of commercial and geo.
graphic conditions and forces, working,
one upon the other; consultation between
shippers and railroads, between officers
and employees of one railroad and another;
a study of all the conditions surrounding
the problem, of the density or volume of
business, of grades, engines, car supply.
and cost. and this process is going on
every day among thousands of railroad off,
GERS and shippers.
The present law grants ample power to
regulate, to say what is unfair and unjust,
and If it were enforced fairly and il the
power now in the hands of the interstate
commerce commission were used, much OF
| the alleged popular demand for giving the
power to fix the actual rate would disap-
pear. 1t is question whether we are not
going even too far in the direction of regu-
latlng for the best expansion of trade
What are the remedies for the abuses
popularity charged to the railroads? In my
judgment they will correct themselves
through the good sense of the American
people, American business men and the
friction of business. In addition to this the
interstate commerce law, with it's amend
mentS, provides ample machinery for cor
recting absolutely every discrimination as
between individuals. If that law is eff
Ifective!y enforced it will drive out the few
remaining cases of discrimination as TO
freight shipments. l think the effect on
railroad management, on the governmental
machinery and on the public generally
would be good If the principles of the inter-
state commerce law were applied to the
passenger business as we'll as the freight
business.
THAT is to say, would stop the making
portation of passengers free or at reduced
rates, because they occupy positions of
more or less power, responsibility or trust.
AS is well known it Is customary for Off
GERS of the government-municipal coun-
ty, state and federal-to ask for and to re-
ceive more or less transportation; and some
also for their families and friends The
revenue involved in this practice is rela-
lively insignificant because the great bulk
of this travel would not take place If a
free pass or reduced rate ticket were not
given.
Most passes are given to the officers Of
the various governments as a compliment
and not with the idea that any direct bene-
fit is to be received-poSsibiy with the hope
in some cases, that any unfair action with
in the power of the receiver of the pass will
be postponed or prevented. In the long
ernmental officer and the public generally
would be in better relation each to the
other if this discrimination as to passen-
ger transportation were eliminated. Such
a step would go far toward making the
general public feel that the railroad was
not interfering improperly with politics,
and that it did not have something within
its power to give away to lawmakers and
others in authority, that others did not
have
The attempt by the federal government
to fix in detail the exact rates to be charged
by the railroads of the United States will
be unfortunate for the country a a whole.
1t is un-American because it tends to SUBJ
5ect large part of our citizens to an eco
nomic restriction that does not apply to
those engaged in other classes of CONNER
cial, Industrial and agricultural business.
/ It is unjust because such a plan would APP
engaged in the railroad business, a rule
not applicable to others.
'It is unnecessary because the develop
ment of the railroad business in this coun-
try has been such that we have the most
effective service as a whole. the lowest
rates, the highest wages and the most
progressive management of any country in
the world.
"It is unwise because it would tend to a
complete and arbitrary Capitalization of
power in the making of rates for the entire
country.
'The course the commission would ulti-
mately be forced into and that every state
commission is gradually being driven into,
would be to adopt mileage basis of rates.
The effect of such basis on country the
size of the United States, with it's past his
tory of commercial development is ap-
palling to one interested in the growth Of
the United States. If in the beginning of the
railroad and business development of the
country, rates had been fixed arbitrarily
on the basis of mileage, the states west
of the Mississippi river would still be thin
ly populated, with few railroads and little
business of any kind. Inland cities with
out access to water transportation would
not have been built up and the whole
growth of the railroad and commercial sys-
TEN would have been different.
ION mileage basis of rates, the business
of the commercial centerS of the states
west of the Mississippi would be destroyed.
Cities on the oceans and great lakes would
have advantages, but the inland cities and
agricultural districts would 6e'y up.
Ear better the few existing difficulties
than to turn to the rigid governmental plan
of fixing raiIrnad rates"
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RACIAL PECULIARITIEs.