The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1905-05-26

Presideut Elliott, 81 the Northern
Pacific, Says Arbitrary Rates
e, Would Be Unwise. @


Northern Pacific railway, and FOR
merly operating chief of the Burling-
ton system, said in part to-day in an
address before the senate committee
on interstate commerce.:
II have been engaged in the railway bust.
ness for nearly Is years in the Mississippi
and Missouri valleys, and my 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 railroad officer
and employee and as q railroad owner in
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-
demred and dislocated any moro 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 inefficient
cics in the administration Of the govern
ment in places.
Zone hears much comment upon the fact
that great fortunes have been made out OF
the railroad business and those who COM
mcnt name q small number Of individuals
who through superior ability. energy, fore
sight ard hard work have built up large
fortunes. 1t is true that a few large for
tunes have been made in the railroad bust
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.
| a 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
| a high level. Nothing can be farther from
| a 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 We're enforced fairly and If 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 q question whether we are not
| going even too far in the direction Of regu-
latinE 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
friction Of business. In addition to this the
| interstate commerce law, with its amend
ments, provides ample machinery for cors
between individuals. If that law is ef-
fectively enforced it will drive out the few
remaining cases Of DISCRIMINATION as to
gpms9ts nh Ink oS seS
Would be good if the principles Of the inter-
| state commerce law were applied to the
passenger business as well as the freight
| business:
Of preferential arrangements for the trans:
portation of passengers free or at reduced
| rates, because they occupy positions Of
| more or less power, responsibility or trust.
| AS 10 well known 1t is customary for OFF,
GERS Of the Observation-Disclosures, cOun.
! ty, state and federal-to ask for and to re-
| ceve 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 q
frse pass or reduced rate ticket were not
given. -.
| the various governments as compliment
and not with the idea that any direct bene-
| fit Is to be received-possibly with the hope
in the power Of the receiver of the pass will
be postponed or prevented. In the long
run, however, the railroad owner. the gov
ia 0eer aaq the h
other If this discrimination as to passen.
ger transportation were eliminated: Such
a step would go far toward making the
not interfering improperly with politics,
and that 1t did not have something within
its power to give away to lawmakers and
others in authority, that others did not
"The attempt by the federal government
to fix in detail the exact rates to be charged
by the railroaas o Of the un'tea states Wis
1t is un-American because 1t tends to sub
ject a large part of our citizens to an eco
nomic restriction that does moi. apply to
those engaged in other classes Of CONNER
cial, Industrial and agricultural business.
It is unjust because such q plan would APP
ply to the large number Of American people
Ut 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 whole, the lowest
rates, the highest wages and the most
progressive management: of any country in
the world.
1T is unwise because 1t would tend to
complete and arbitrary Capitalization OF
power in the making Of rates for the entire
country.
1.-The course the commission ould 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 a 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
country, rates had been fixed arbitrarily
on the basis of mileage, the states west
Of the Mississippi river would still be thin
~ populated, with few railroads and little
business Of any kind: Inland cities With.
not have been built up and the whole
tenn would have been different.
ION a mileage basis of rates. the business
Of the commercial centers Of the states
west Of the Mississippi would be destroyed: