The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-21

any w increase tne volume OF tTamC tnat II
TO pay the prioe they have BEEN accustomed
to pay easily. But IL we should once lower
our rates-possibly to the point Of loss, az
American railways have done frequently
~ orises- would not be allowed to restore
them later when they should fairly be
restored.
Occasionally. temporary rates are made
for the term Of a year say, but 1t Is quite
exceptional. And why, do you suppose9
The process OF reducing rates under our
system Of Government regulation, which
kind. involves so many hearings. discus
stons and disputes by rival boards Of trade
and chambers Of commerce, deputies,
politicians. shippers and the rest Of them.
that 1t takes many months and sometimes
years to get permission to make a re-
by that time the necessity for which
the reduction was asked Ia passed it will do
neither the railroad nor the community
any good; and SO we do not ask for suoh
things.
1T may seem curious to Americans. but
no reduction Of rates has ever been made
In France to meet the needs Of tho rail-
roads, however much they might want 1t.
A striking instance Of how Government
regulation works In this particular 10 the
experience Of my own road in common with
others few years ago, when the phylloxera
attacked the vineyards OF southern France.
There was no wine making to speak OF
In France then, and the oountrys supply
was imported from Spain. Over there
vino Is staple q necessity OF the poor
rate for bringing it from Spain into Paris.
THE deputies OF the vineyard districts
protested however, because they said
we were carrying Spanish wine as oheaaPiy
as we were carrying French wine. The
railroads were obliged to restore the high
80 t,,,vD tai SkSa Uiro 4
Paris from Spain by water, through the
canals and canalized rivers.
In order to mako this water transporta-
ton easier. the Government made large
extra appropriations for the canalization
Of the Seine at that time: The citizen en-
was being projected partly for the benefit
was, as a taxpayer. contributing his francs
for this canal construction and repair
when he could least afford It.
haye r eGa y srs Ssd IN ra
ways original contract with the Govern
ment and set down In the cohier des charges
what you would call tariff sheet or rate
book, suppose. For obvious REASONS.
the State the right to lower these maximum
charges, nor can 1t be expected that they
ever win consent to such thing.
Our contract with the Government is
like any other contract, " cannot be altered
except with the consent OF both parties.
Any form Of government supervision short
Of absolute government ownership must
be based on contracts OF that kind, other
wise what protection would there be for
the vested interests?
Petitions for lower rates are made to
the Director Of Railways from time to time,
and perhaps he will suggest the desirabillty
Of considering some Of them, but ne has
no power to enforce such demands. OF
course, sometimes we must yield TO suon
petitions against our better Judgment,
when they are evidently nothing less than
sectional selfishness. The pressure which
any Government can bring to bear Is tire
certain circumstaI,oes, even though It
may threaten industrial misfortune
The wonderful growth and develop
tion Of the whole world. have no doubt
It ia to be attributed largely to the free
dom you have always enjoyed In your
commercial and industrial life.
Opportunity. is given here for railwsys
and splendid use has been made and is
being made OF it. The few cases Of COM
plants against your railways. the expan-
sion Of trade through the opening Of Euro
pean markets to the producers OF your
Central and Western States. who are en-
abled to deliver their products abroad,
the low cost of transportation that enables
them to compete there with the foreign
producer near at hand whose railways are
In no position 70 help him-all these things
seem to me sufficient evidence OF the sue
cess and desirabity Of the American prac-
tise In the management and regulation OF
railway matters.
ANY economist, any business man. any
transportation manager will tell you that
the present American method OF fixing
freight rates is the only logical and rational
one