Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-09
SPENCER ON RAIL RATES.
Many Traffic Officials Attend Third An
nual Banquet.

At the third annual banquet of the
Traffic Club of Pittsburg, at Pittsburg Fri
day night, Samuel Spencer president of the
Southern Railway, spoke for the railroads,
and Judge Peter S. Grosscup Of the United
States Circuit Court, Chicago, upheld the
rights of the people.
There were ATS railroad traffic officials
and Pittsburg manufacturers around the
board.
Speaking to the toast, 1.-THE Regenera-
ton of the Corporation" Judge Grosscup
said, in part:
Il know of one corporation that organ
lied recently under the laws of New Jer-
sey, with an authorized capital of forty
million dollars. For some reason this must
have looked high, even to the promoters,
for only ten million were issued. After
little while these ten million were reduced
to two, whether from some scruple of the
stockholders or some business expedlent l
do not know. All know Is that little
while after that the corporation landed IN
bankruptcy court, with assets all told or
S25 600. presumably acquired on the credit
of the corporation, after it's organization,
for the current liabilities exceeded these
assets. ,
..Rut Won ask me, How can the course of
things as they are now going to be changed?
How can the individual man be brought
back into proprietorship? My answer Is:
out of the list of suspects. Put the cor
poration, as national banks and trust COM
panies are now put, under the supervision
and control of law, to the end that 1t be-
come a faithful steward.
Samuel Spencer, president of the South
ern railway discussed the question Of
freight rates. He said, in part:
1t is charged that rates are eXtortionate
and must be lowered, and yet the rates in
this country are only from one-half to one
third of those in countries with which the
producers of the United States must COM
pete in the markets of the world, and wages
of railway employees are 80 per cent higher
than the highest elsewhere, and in eighteen
years the interstate commerce commission
has not succeeded in establishing in the
courts a single case of rates unreasonable
in themselves.
1.-The simple, direct, equitable and effective
method of dealing with the question seems
to me to be this:
'If further legislation be necessary, and
do not say that 1t Is not, let it be given the
direction pointed out by the evils calling for
correction, and along logical, not expert
mental lines. for the remedying of those
evils. Draw the distinction broadly and I'M
mistakably between punishment for crime
or misdemeanor, on the one hand, and the
unnecessary and unwise governmental or
paternal interference with legitimate and
legal exercise of individual endeavor on the
other Separate widely the functions of gov
eminent which detect, and arraign and pros
ecute from those which sit in Judgment
upon complaints and offenses against the
law.
strengthen the laws in condemnation of
rebates, secret devices and unjust discrimi-
nations to any extent that may be found
possible. and provide, If such further pro-
vision still be necessary, for the prompt ar
raignment and prosecution of all offenders
of the law in the duly constituted courts of
the country, and for the unsparing punish
ment of those who are found to be guilty.