The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1905-04-21
RAILROAD NEWS
FUTILE POINTS OUT
FOLLY OF RATE LAW
New England Railroader Testi-
flies as to Effect of Federal
Legislation on Subject

WASHINGTON, April 20.-Lucius
futile, president of the Boston &
Maine, was heard by the senate COM
mittee on interstate commerce today.
He read from the message of Presi-
dent Roosevelt condemning rebates,
private car lines and recommending
that power be given to the interstate
commerce commission to fix rates; also
from an address of Commissioner
Prouty condemning the railway man
ayers for building up monopolies and
referred to an article of Representative
Esch Of WISCONSIN which criticised the
railroads. He said these views ex-
pressed the various shades of senti-
ment in favor of the regulation of
railroads.
Mr.. futile said there was not the
least doubt about the right of congress
to regulate everything pertaining to
interstate commerce, subject only to
constitutional limitations. He declared
that the only valuable property right
of a railway is the right to make its
rates. The road could not remove its
property or abandon its operation; and
it must therefore be enabled to make
a rate which will give it fair return
on it's investment.
Mr.. Tuttle said there were practical
ly three systems in New England. The
Boston & Maine dominates the north
ern half of New England. Men in that
region doing business must depend on
this road and yet, he said, in twelve
years not single complaint had been
made to the interstate commerce COM
mission. The same was substantially
true of the New York, New Haven &
Hartford and the Boston & Albany.
Stability and uniform rates were nee
essary rather than low rates.
Rate Commission impossible
He asserted that no five men could
fix railroad rates for the country.
Messrs. Gould, Morgan, Hartman and
Vanderbilt could not either singly or
together fix rates on their lines any
more than blacksmith could repair
watch. Boards of directors, did not
not discuss or fix rates. This was left
to expert traffic managers.
Mr.. futile discussed at some length
the reasons why there were low rates
on certain commodities; also the effect
of water rates on railroad rates from
north Atlantic ports to southern points,
and said that the railroad rates were
lower from Chicago Cincinnati and
other points in the west, because the
railroads must meet the water rates.
At times railroads, he said, must carry
merchandise at positive loss in order
to keep the business of the country
moving.
Discussing the long and short haul
propositions, Mr.. futile said the high
er charges to intermediate points were
subject to natural laws and these could
not be changed by legislation. He be-
lieved that a large amount of the
transcontinental business was carried
at loss. On the Pacific coast there
was competition with Germany and
other European countries, which car
ried goods by water. He contended
that if congress attempted to say that
there should not be charged a higher
rate for a short haul than a long haul.
1t would destroy business or bankrupt
the railroads.
No Regulation of Banks
Mr.. futile said that congress. with
absolute power over national banks,
did not attempt to fix the rates of in
terest. If congress should provide that
national banks should not charge more
than per cent, he believed most of
them would liquidate.
The reason why there was demand
Tor the regulation of railroad rates, he
SAID, was because the roads could not
get away and could not remove their
property.
Mr.. futile said he had one complaint
TO make against the interstate COM
merce commission. 1t went to law too
often and did not settle enough cases
by negotiation. Instead of 90 per cent
should be SO per cent.
Mr.. Tuttle said the commission
should be relieved of much of its pres
ent duty. 1t should investigate cases
and turn them over to the department
of Justice The commission should not
be quasi court, but buffer between
the people and the railroads.
Speaking of government ownership
Mr.. futile said that the best railways
in Europe were in England. where
there was private ownership. In Ger
many and France, where there was
government ownership, the roads were
not as good. Rates on these roads
were higher than in the United States.
Roads Would Avoid Business
Replying to Senator Elkins, Mr..
futile said that if the government
fixed rates below a point of actual
cost the roads would avoid doing the
business
Senator Ellxins informed the COM
mittee that all Information regarding
the subject of granting rebates to the
government for carrying materials to
construct irrigation works would be
furnished to the committee The COM
mlttee adjourned until IL o'clock Sat
urday.
Chairman Elkins said today that
evidently a misunderstanding had
arisen over the request of senators to
appear before the interstate COM
summoned, but Senators Spooner,
Knox and Morgan had been invited
in their own way to assist the COM
mittee with advice and suggestions
concerning the work the committee
had to perform. There was no inten-
ton, he said, of summoning senators
before the committee.