Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1905-05-09

HSO~-~-
try in favor of government rate con-
troll, says the Chicago Record Herald,
railroad presidents are organizing for
defense of what they regard as the
vested rights of the companies they
represent.
The defense which has been planned
Is in the line of campaign of educa-
ton to be carried on through the me-
dunn of bureaus of publicity.
In addition to this railroad officials
everywhere are expected to seize ev-
cry opportunity and every means to
SOW the gospel of non-interference by
the government with the rate making
power. Steps are to be taken to con-
vince the shippers tina. their interests
lie with the railroad arrangements
rather than with a commission clothed
with the power to say what is fair
rate and compel it's adoption.
One western railroad president de-
clared yesterday: The railroads are
in life and death struggle and Of
course, we are going to do everything
in our power individually and collec-
lively to defend ourselves and our
rights"
A second western president said:
I'VE have delayed too long. We should
have had an organization long ago to
disseminate our views
The eastern presidents took the mi
tiative some time ago by establish
bureau under the management Of ].
H. Maddy, who is also press agent for
the Erie.
Following this lead the western
presidents have authorized Slason
Thompson to employ experts and be-
gin a separate educational campaign
in the entire western territory.
Herewith is published two articles
presenting the rate question from the
railway point of view. The first one
headed: Government Rate Making
was sent out to the press by Mr..
Maddy, and the other headed, Iowa
and Government Rate Making" was
sent out by Mr.. Thompson.
Government Rate Making.
Railroads, like merchants, do part OF
their business without any profit
weekly handle thousands of tons OF
the bulkier sorts of freight at a mere
minimum of profit above the cost OF
transportation They believe it helps
their general business to do so by
building up manufacturing and agri-
cultural industries along their lines
Sometimes they make mistakes OF
judgment and fail in their purpose, as
do merchants. But that is business.
Left to themselves, and utilizing the
best traffic managers that money car
procure, the railroads have not AL
ways found business profitable. Many
of them have gone through bankruptcy
as result of trying to develop vari-
Gus sections of the country. But the
territory ultimately developed and has
become prosperous at the expense OF
the men who built the railroads ant
lost the money they invested.
The railroads have, as rule, al
ways tried their best to adjust rates
so that no particular territory on theil
| lines should be Disseminated agains
III traffic benefits. Under govern
ment rate-making, such as Is proposed
by the Esch-Townsend bill, these con
| ditions would be changed. Reason
able rates. to be established by ma
chine methods could not compel a.rail'
road to do business at a loss or ever
at a minimum Of profit for the sake O.
building up any particular village o.
city or business interest along it's lint
4 in order to help out that locality o.
business in it's fight for existence
against a rival on another near-b.
railroad. 1t would have to be strug
gle for them without railroad aid, witt
the result of the survival of the fit
test.
i Railway managers could do that sor
of thing, as they have done it for tn
years past, with their own propert.
and at their own risk. But the gov
y eminent cannot do it with the prop
erty of others. There would have t
be fiat commission made rate on
distance basis. So however low tn
short haul rates, that distance basi
for rates would naturally make loni
haul rates higher than they are now
and absolutely destructive agains
some localities and some businesses.
; Once this plan of equal rates flo
troubles of the rate-making commits
sion would begin. Every communit
nearer to a desirable market tina
other communities with which 1t is 4
; completion, will insist upon having tn
advantage of its situation. REGARDLESS
: OF the effect on the less favorably sit
, uated community. The rate-makin
commission could do nothing but Civ
it the benefit of it's natural advantage
and let the less favorably located com
munity die of the dry rot that woul
be its portion.
Iowa and Government Rate Making.
The consenous of opinion anon
men who have studied the rathe
) startling proposition to give the rat
making power for railroads into tn
hands of the Interstate Commerce
Commission, is, that while there ma
be some communities in the countr
to which such a change would max
no material difference, there are man
of our great western states to whic
5 such an innovation would spell agri
r cultural ruin.
One of these staes is Iowa And
little care even on the part Of thos
least acquainted with financial affair
of governmental operations will max
it apparent just to what an exter
lowa's future is bound up in the posi-
bilities now being discussed before tn
r senate committee at Washington
An essential feature of any act pre-
viding for government rate making
a clause against discrimination be
tween localities. Even if the rate reg
; ulation act did not contain this spe
cific provision the constitution say
| ho rI,,n L I.