The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-05-12
PRESIDENTS PLAN
HAS SOUND BASIS
Continued from First Page.

Continued from First Page.
treasury, to prevent the railways from
becoming insolvent.
The situation in these two countries
was outlined to the senate committee on
interstate commerce last week by Pro
fessor Meyer Of the University Of Chi
cago, who was, prior to going to Chi
cago university, assistant to Professor
William z. Ripley at Harvard. Profess
sor Meyer radically differs from Pro-
fessor Ripley, who fills the chair Of
political economy at Harvard, and who,
testifying before the senate committee,
takes the ground that American econo-
mists agree that the presidents posi-
tion is sound.
Opinions Not on Market.
Professor Meyer published some Of his
views recently in the Railway Age, thru
which they came to the attention of
the railroad interests, and he was in
vited by the leading attorney Of the
railroads, former Senator Faulkner, to
appear before the senate committee, his
expenses to be paid, in addition to a
| liberal fee. This invitation was politely
declined, Professor Meyer saying that
his opinions had been reached as the
result of many years of careful study,
and that they were his own, and had
not been influenced by any outside con-
sideration. For him to accept Mr..
Faulkner s invitation would be for him
of the present controversy, which, as
he was student before he was anything
else, he was unwilling to do.
| Then Senator Elkins, chairman of the
senate committee, invited Professor
Myer to appear before the committee,
and this invitation he accepted, resery-
ing the right, however, to defray all his
ing even to accept the customary per
dunn and MILEAGE fees which the gov
eminent always pays in such cases. He
was in Washington nearly week, and
before the committee for parts OF three
days. His testimony is regarded as the
4 most important Notwithstanding argu'
ment thus far offered to the committee
an argument which will be drawn upon
next winter for the defeat Of the Esch'
Townsend bill, or any other bill seek
ing to confer the ratemaking power on
the government.
Cumbersome and Unfair.
His testimony is that in both Ger
many and France, government ratemak
ing has proved very cumbersome anc
unfair. Three major objections to II
were developed in Meyers testimony,
First, its inelasticity; second, that II
favors the individual at the expense Of
the common veal, and, third, that it ia
vors the man nearest the terminal poln1
and rankly discriminates against the
man farther away.
AS the result Of this government sys
tenn, in Germany, commerce has beer
built up by leaps and bounds along th'
waterways in favor OF which the sYs
; TEN operates AUTOMATICALLY, to the IN
. Jury of all inland points. Community
, has been arrayed against community, tt
the point Of a deadlock lasting for al
many as fifteen years in some cases, ant
, the DEVELOPMENT of inland industries ha
been stifed.
Would Bankrupt Farmers.
Professor Meyer contends that suc]
> a system, put into operation n I'M
/ Of the states west of the Mississippi
3 including those Of Minnesota, the Da
kotas. Montana, Nebraska, and Kan
Y sas, and at the same time build u
8 those near terminal points-namely
= the farmers of Illinois, Indiana, Obi
Q and Pennsylvania. Such a system. pu
y it was put into operation in Germany
q Professor Meyer says, would have pre-
= vented until this day the development
+ Of the states first named, and the
J. would still be covered with primevs
= forests and untitled prairie, the, HON
Q Of the Indian and his wild animal prey
a France, can rarely be changed, an
then only weeks and months after tn
8 request. The tendency Of government
r fixed rates, as illustrated in those cou1
Il tries, is to remain fixed. If q propos
e ton comes up looking to a change,
d val communities fall out about It, an n
" nothing can be done. Meanwhile t6
y RESOURCES of those communities renal
e undeveloped, or in a state OF arreste
l. development. ..-
Countries Thus Divided.
This system has arrayed eastern &c
"a many against western Germany, urba
~ river communities against the excl
q sively rail communities: AS one illu
- tration, wheat from the Danube !
"a western Germany, distance of Loo
IT miles BY rail, is carried several tho
It sand miles by .water-down the Danub
It thru the Mediterranean, out thru tt
e. Pillars Of Hercules, and up the A
,s wheatgrowers in western Germany. i
1T sist that the government has no rigl
ts to establish a rate which will bri1
b their far-away neighbors into compel
as tion with them. '&s551S:e% Ess5
o, ! IF the system works in that way
~ Germany, Professor Meyer says
~ would work that way in the Unite
States, and that the entire west wou
re be subjected to a commercial and
he dustria1 paralysis in consequence.
he Cortelyou's Address. r.
Postmaster General .Cortellyoul, in 1
on ad dress last night before the intern
he tional congress, laid much stress up'
~ the maximum rate which the COVER
ment is empowered to make for t
- carrying Of mails. Formerly POSTING
ters general have not exercised th
power, but Mr.: Cortelyou indicated tn
he regarded it with good deal l.
40 "A Indicating that the administrati
ng will accept a bill fixing maximu
vn freight rate.
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