The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-10-29


chants j
The phenomenal development of this
country has been greatly accelerated
by the growth of the railroads the
Census Bureau of the government in a
bulletin just issued, gives the COM
mercial value of the railroad property
in the United States 1t is $11,244 ,S52,-
0OO These are figures that amaze the
senses More than eleven billions of
dollars invested in rail transportation!
Truly as President Roosevelt says,
those be immense interests engaged
in Interstate commerce" There is
very little of this immense investment
that is not, in the present day, con-
sidered good. Railroad companiesA
more active than ever before: large
dividends are being earned on the
stocks of all important lines; and mil
lions are being expended in new equip
ments and extensions The railroads
are prOspering. They are great de-
velopers and have been likened to the
arteries through which the commercial
life blood of the nation flows.
This article does not attempt to
deal with the conditions throughout
the United States, but has special ref
erence to North Carolina. The writer
is heartily opposed to the socialist cry
of government ownership of railroads
but believes with President Roosevelt,
that. Experience shows that the
present laws are defective and need
amendment The effort to prohibit all
restraint Of competition, whether rea-
sonable or unreasonable. is unwise.
What we need is to have some admin
iStrative body with ample power to
forbid combination that is hurtful to
the public. and to prevent faVoritism,
to one individual at the expense of
another. In other words we want an
administrative body with the power to
secure just and fair treatment as
among all shippers who use the rail-
roads-and all shippers have a right
to use them.
Combination of Railroads.
1t is well known that all the main
lines in operation in North Carolina,
are in an organization known as the
Associated Railways and they main
tain their general offices in the city of
Richmond. Whether due to this organ
ization or not there is no such thing
as competitive rates in North caro-
lima. A rate which has been established
as a result of competition is the pest
standard of reasonableness, therefore,
- competition being eliminated North
Carolina has unreasonable rates. Ii
is more than probable that our hope
Of a competitive railway is out OF
question. The leasing of the railroads
owned by the State of North Carolina
has debarred natural competition and
the only remedy to cure the evils now
existing is by Vesting an administra-
tive body with authority to regulate
rates.
Appropriate Remarks.
That President Roosevelt should
have delivered his most important ut
rat q lnpiclatinn in North
Carolina, is of universal significance
The President showed his knowledge
of our educational and industrial pro-
gress and his every utterance indicat-
ed q thorough familiarity with. the
problems solved and to be solved by
our people. 1t is but natural to credit
him with knowledge of the unjust dis
ordinations made by the railroads
against the State of North Carolina.
Freight Rates Increased.
Competition is the sole regulator OF
Interstate commerce, the only nope
against unreasonable freight rates, the
arch enemy of greed and monopoly,
nowhere exists, and the Interstate
Commerce Commission in its annua!
report makes the following statement.
"One of the most significant things
in recent railroad operation is the
steady advance in the cost of trans
portation of freight by rail. A few
years ago the impression was general
that freight rates could not and would
not be advanced. Railway traffic off,
cials frequently affirmed this in testi-
mony. When the commission had un-
der consideration certain consollda-
tions of railway properly the emil
nent gentlemen who had brought them
about stated under oath that the puf-
pose was not to advance but rather 10
reduce rates. Recent history DeleFes
these predictions.
The increase in the transportation
charge has been accomplished in va
rious ways and by nefarious complha-
tions 1t was shown that advances
had been made under various pre-
lenses, viz: by changing from lower
to a higher class, by changing from
commodity to class rate, and by mann
tanning published rates. Thus frelght
rates have been increased from time
to time until today they are in the
majority of cases higher than ever.
Stealing steadily upon the commercial
and industrial enterprises from year 10
year. they levy an additional and in
creased tribute upon the resources of
the State beyond the highest rate
which competition fixed as reasonable.
1t requires no argument to show
that il is entirely correct that rates
have increa Sed-the railroads have in
creased them. Has the shipper, the
producer Of the consumer had any
voice in it? Has anyone but the rail-
road? Then why should by authority
be denied to the representatives cho-
sen by the people to have a voice in
the regulation of charge that is a
direct burden on them?
No Distributing Point
There should be Il strong demand
for equitable freight rates in North
Carolina. because the commercial and
manufacturing interests of the State
are suffering serious injury by reason
of their inability to compete with 9TH
ers within their own territory. for bus
mess that is legitimatey theirs. These
freight rates are fundamentally wrony
and ought to be corrected. There are
really no jobbing centres in the State
because of the advantage given to 9th.
er States. It's effects are harmful and