The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1905-06-01
RAILWAY REGULATION.
American and British Views on
Rate Making Powers.
SIR CHARLEsJ. OWENS STATEMENT

London and Southwestern's Manager
Says British Experience Shows
That, While Fixing of Maximum
Rates by the Government May Be
Justiaable, Its Tendency II to Ar
rest Neutral Decline In Rates-Rea-
sonable Rate Leeislation Not Op-
posed, Says Samuel Spencer.
An interesting and significant state
ment Of special timelinesS, in view OF
President Roosevelt's recent utterances
on the question Of railroad rate max
ing and Of Secretary Tafts discussion
Of the same subject at the banquet OF
the recent international railway con-
gress at Washington, was made IN an
interview the other afternoon by Sir
Charles ]. Owens, general manager OF
the London and Southwestern Railway
company. who is one of the most prom
inent Of the British delegates to the
congress, says the New York Posts
WASHINGTON correspondent. Sir Charles
has been active in railway manage
ment in England during the whole agi-
tation of the matter Of rate regulation
there. and his experience Of the ef-
fects of government regulation In Great
Britain is especially valuable in the
present discussion in the United States.
Speaking from British experience, be
says that the fixing Of maximum rates
may be justihable, but he adds that the
result Of this in England has been to
arrest the natural decline Of rates and
to maintain them at the high level at
which they stood when regulation was
adopted.
where quarrel with the legislation
proposed by President Roosevelt, as l
understand It," said Sir Charles, fs
that it is suggested that tribunal shall
have the right to dx an actual rate. In
nv opinion, q government should be
perfectly satisfied with fixing reason
able maxima, leaving the railroad COM
panies proper commercial liberty to
act within the limits of those maxfma,
subject always to the enforcement OF
the law as it guards against discrim-
ination in all its forms.
II quite agree with the suggestion I
have seen made more than once that
It would be as logically unsound for
the government to fix the price OF
bread as it would be to fix the price Of
the commodity we call railroad trans
portation. Its effect could only be to
deprive the railway companies OF that
commercial elasticity In arranging
their prices which Is fundamental
necessity in the conduct Of any busi-
ness. Indeed, but for the fact that
there is measure Of monopoly In ev-
cry railroad, although not to the same
extent in the United States as In Great
Britain, It would be hard to find any
logical reason why even maxima
should be imposed upon railway
company more than upon the producer
Of any other necessity Of life, for such
we may surely call transportation"
Speaking Of the regulation Of freight
rates by the British government Sir
Charles said:
Dealing with the question historic
ally, it should be remembered that
when each individual railway compa-
nv obtained It's powers from parlia-
ment the powers were accompanied by
the imposition Of maximum rates. The
rates varied greatly In many districts
and were in every case accompanied
by a classification setting out the
classes In which various articles OF
merchandise were to be found, but the
classes were extremely vague and cov-
cred but very few articles and COM
modities. From time to time amalga-
nation Of companies has taken place,
30 that our largest railroads In Great
Britain are, broadly speaking, made
up Of tens or even twenties Of small
companies, each originally having va
rious powers both as regards rates and
classifcations. This made It extreme
" difficult for any trader to decide
whether the rates charged by pa-tic-
ular railway company were within the
maximum powers Of that company
and would often involve referring to
anything between ten and twenty diff
ferent acts Of parliament. This led to
great many complaints on the part
Of the public and to constant false &C.
cusations against the railway compa-
MES that they were charging In ex-
cess Of their powers.
Repeated committees Of the houses
Of parliament were appointed to con-
slider the question, and the ultimate
outcome was the passing Of the rail-
way and canal traffic act in 1883. This
act provided that every railway COM
pany should submit to the board OF
trade revised schedule Of class rates
and also a revised classification. The
railway companies, Of course, COM
piled with this and after mutual con-
sideration submitted classifcatons
which were to be common to all rail-
way companies and schedules Of rates
which but very slightly differed.