New-York tribune., 1905-02-20
RAILROAD REGULATION.
TO ELIMINATE ABUSES.
The President of Cornell to the Prcsi-
dent of the B. and u. Railroad.

,ofversicy. has written letter in reply to com
-srts by President Lucius Tuttle OF the Boston
- Maine Railroad Company on President scbur
-rn's address on -1ndividuallsm." delivered a.
coooer Union on January 4. taking UP points made
!, rcsard TO governmental regulation Of railroad
rstes u beginning the letter. DR.. Schurman re-
Fs-s % the competency of men outside the circle
of raroad officials to discuss the question of rail-
mad rates, saying;
Tbe railroad president has the advantaee u,
En9Eledge Of ell TECHNICAL s, matters relating the
ever q being compelled TO look al every question
rs q al from The point Of view Of the directors
Interests conflict with the interests of the general
% he does not come to TgarSd iaTse hs nanSs
it@s ~ and ne every u oteF m fhe 0ay pTaeuea @ point
mental, The man who studies the question OF
Paw less Of the details Of railroad a6mnistray.
iion hu; he InaE have a deeper insight into those
9sa problem which are the primary sources e of the
esmand for governmental fixing of rates
Taking Up The first point in Mr.. Tuttie's criticism
q his address. Dr.. Schurman says that. in refer
cree 10 the influence OF transportation on the price
q commodities. the progress OF science and
srventi1n makes transportation OF far more eco
ao-nic Importance than formerly and. therefore
every producer and every consumer vitality in
3sTested in The right adjustment OF the rates OF
transportation.
d.. schurman next adverts TO the criticism of
bis reference TO the power Of the railway by Mr.
Tytte, saying:
railroads
possess certain powers which you characteTize as
'alto-Tatic and damaging. and that in the exer-
~ Inc TpstS trust. we 1 see about Us today; Your in
are n my personal knowledge exercising these
aEocratie ard damaging powers. and whether !
ness Enterprises and individuals are nov" the
ob--cis 81 railroad discrimination
Now. from . gentleman who has beer forty years
Il she railroad business this strikes me as a rather
n - oonnecton With raroads sPecfg the hs Is
c-t-latloEs which the railroads are practising this
alE OF q III - NOR knox hat
Iairoad dscriTninations effected BY subter-
ra1eaa methods under secret agreements. tie evi-
proof see reP2Tt Of the Industrial Commission, Vol
abuses cannot be known 10 the public at the time
ly cones TO light il is fair e To- assme Sb 7bst
Iauidtudes remain hidden IN the darkness that
Taat II does exist we know on the testimony
~ railroad officials themselves 10 say roth
iu1 q Other evidence, direct and circumstan-
-5aL Ihe principal sources of information for
e.tss.s - d-2onneoted. rl1e with the railway service
q the New York legislature 1873 the report of the
Cuic1 carnl1ittee Of the United States Senate.
oe Commission sinoe 1877 ah6 3 the 5'grf repof of fGF the
Industrial Commission. 1SS9-l9o2 is vols.
EVIDENCE OF DISCRIMINATION
nr. schurman cites testimony from experts such
IS George r. Blanchard, who had served as COM
missioner q the Joint Traffic Association; Paul
Norton. second vfce-presideut Of the Atchison To-
TeEa ard Santa Fe Railway Company: Mr.. Cowen.
PRESIDENT Of the Baltimore and Ohio Railroad Com
4lEa4ls. president OF the CheSaOe2k ke and
ONO Railroad; Mr.. Spencer, president Of the South
ern Railway; Nj Stickney president Of the Chi
caso Great Western Railway. and others. gvho
testified. 70 the existence Of the general practice
n discrimination, and adds: And the members
q the Interstate Commerce Commission all agreed
N thar testimony before the Industrial Commits
son that numerous and secret determinations are
StI made by railways lie continues:
Lhe ,testimoay taken By the Industrial coulrais-
son 10 SHOWS that in times OF heavy traffic there
S = iSs DISCRIMINATION The roads have then all the
ton TO cut rates to secure more when times be-
me P2orer 2nd the railroads once more compete
Jesl-!e oscrlrniIlatlc 3 revived IN full force
oI tae prevalence Of the practice OF discrfmna-
nan can entertain doubt The "autocTatic and
- oIise & -fs power which the railroads possess they
Iseet the resi- Of your challenge. and show that in
% say this is their deIjbe-a4e am! % or
1It- N the vast majority Of cases am sure n is
IS the necessary result of The actons al t e @ Sre Il
- g Bird. general traffic manager OF the
I5 Il.,eeso o fAii-iWaukee and ST. Paul Railway de-
62s. 2sSon that there is no doubt that towns are
Of rates vo " p 973 Ard tesnonq5 5 aSon19
70 snow that railway discrimination builds m
state Commerce con,I3fss6{ I5 saEs IS ne ne Inter;
= TIE strong and against the weak there is Drob
-9-% no one thing to-day which does so much to
.esee out the small operator and 10 build up those
1JSts ana monoPohes against which law ard
tons in freight rates And the report for the fol-
1iSSO be1fa Cd
5AaSseTaIed-" Mr.. Ingalls, president of the Cleve-
Chesapeake and Ohio railroads gave similar tasfj
nohy with regard 10 determinations before the IN
n sad, your present condition OF affairs is build
l.g up your large shippers and large institutions
@ssler dealing with one man than one hundred
And as late as January Z 1862 we have the state
IT, coaT;s 81. i9teTess o oS Is ~, m genera charge Of
and santa Re Railway that I'VE tod one 81 tfa f
largest shippers il Kansas City that they would
cents reduction from the tarih and in order to ger
them mad 10 promise to do il for a year-I think
eustr.aI Commission Vol XIX D 659 1902 sur
FeEiEg the vast mass of evidence with regard to
la-ssion. Thomas ". Phillips. OF lis mem
Isfs ares III ~ snp2epentaTy t statement Tt that
hsve made most unjust Determinations IN favor OF
The few Al the expense of the many" Vol XIX
? CO.. la- And think the impartial reader OF the
hearings VIII be convinced that this conclusion is
f-lv sustained by the testimony of the railway
hcals themselves If the evidence Of all other per
sons be discarded.
Coming down TO the year 1905 Dr.. schurman
goes OF 70 say: The Supreme Court Of the United
States IN the case OF the United States vs. Swift
( Co, known as the Beef Trust Case has rem
oered decision against the packers. who were
charged, among other things. with forming a
'o-E-a.nation 70 get less than lawful rates from
-e railroads 70 the exclusion OF competitors
t'er+' then. is established instance Of unjust
discrimination a the present time" He thus con
d-aes On this point:
t7r have been defending against interrogatory
qqtllals y yours the position taken in my Cooper
&c. aocress. submit that have made good, on
ps-ls. a!i said in that address on the enormous
~ ,eHsIc-sed by the railways over the business
"-eHef n the upbuilding Of trusts.
ADDITIONAL POWERS NEEDED.
taking ~ a question of M. Tuttle in regard to
t-e lo"es Of the Interstate Commerce Commission