The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-03-25
NELLEN'S RAYEMAKING VIEWS
FAVORS REGULATION, BUT NOT
THE HEPBURN BILL.
New Ravens President Says Interstate
Commerce Commission Shouldn't Med
die Where II Hasn't the Right, as One
Member Did In the Standard OIL Case.

Mellen OF the New Haven road was Vne
principal speaker before the Boston Art
Club this evening. He discussed plans for
the development Of the New Haven road
in and near Boston, got after some OF the
members of the Interstate Com
mission in u vigorous manner, said that MS
road was not treating the Standard OIL Com-
pany in any different way than 1t was treat
ing other companies doing business with
the New Haven and replied to those who
had attacked him for his recent comments
on the Hepburn rate bill, now before the
United States Senate.
The New Haven road, he said, had never
caught I'D with its business, 1t had been a
combination of roads, more than a oonsollda-
ton, and the result had been the restraint
of conservatism, the restriction Of develop
ment, rather than the courage of hope and
the expansion of optimism.
Three years ago he found a great bust
ness without the facilities for handling it.
The lack of equipment had been remedied
in quantity, but not in quality The past
winter had been the first in many years
in which there wa power in reserve for
emergencies. He spoke Of the many i'm
proyements under way and added that as
fast as the patronage warranted both
IdSStIlHtA plll liNio'N S'N' -
reduced. Taking up the Georgia peach
rate case, he said that the Interstate Com
merce Commission had recommended a
cut from $50 to $50 a car. The company
made the rate SOS. Then he added.
At the same time rates upon peaches from
other sections were reduced similarly, and |
am advised that the gate amount OF the
reduction made was greater than would nave
been the case had tho recommendations OF me
commission been complied with literally.
The reduction was also made to apply to other
prominent cities on our road as well as Boston.
In this case you have an example OF hap
hazard ratcmaking. The rate named by the
commission applied only on peaches from
Georgia points to Boston. but in equity neces-
stated a revision of the tarifr on peaches from
other sections as well. notably New Jersey
and Delaware. Had the commissions recon-
mendation been literally complied with there
would have been an inequality established
which would have resulted in a multitude OF
complaints.
Mr.. Mellen then took up the Standard
Oil case. making this statement in behalf
of the company
The case before the commission was
brought at the instigation of a member of
the commission. who promoted in every way
the bringing of the same, even 10 assisting
in drawing the complaint. not satisfied with
this, with that judicial fairness which char
acterizcs all his work he heard the case upon
he complaint which he assisted in drawing
and then rendered a decision, claiming there
was discrimination. but admitting the de-
cision was Intellectual because the commission
had no jurisdiction.
He knew he had no jurisdiction in the be-
ginning. and his only object in hearing the
case was to bring an argument to bear why
he should be given more authority, and
hz,,l h- lnEi,lu pIr nODnnanV with tha
popular prejudice that has lately been ex-
cited against the Standard Oil Company he
could bring additional weight to bear to ac-
complish his purpose.
With his customary fairness he neglected
10 mention in his decision what was fairly
shown at the hearing. that upon the New
Haven lines there was competition through
others not in the control of the Standard Oil
Company, who were favored with equally
liberal rates for the distribution OF their
products: that the territory OF the New Haven
Company was not controlled in the interest
Of the Standard Oil Company. but was COM
2 peted for by others in the same line Of trade.
Before the case was heard. and while II
was pending, before any decision was rem
dered. the Commissioner who presided at.
the hearing of the case had substantially
announced his decision on two public occa-
'sions. one on March 8. 1905, before the Eco
monte Club of Boston, and again on May 10
1905, before tne JHlteu otdles oehdlt Noih-
tmittee on Interstate Commerce. The orh-
cialdecision of the commission was announced
on February II. 1908.
From this. gentlemen, YOU may perhaps
understand some of the hesitation on the part
of railroad officials, why they do not want
any more power put in the hands OF one so
prejudiced: why railroad Officials do not
care that the position Of detective, advocate.
public prosecutor. Judge. jury and eXecu-
TONER should be in the same hands. although
of course there are ameliorating circum-
stances when the disposition is TO announce
a decision in a pending case so far in ad-
vance of its hearing it gives such an oppor-
tunity to prepare for the blow when II rails,
and ] take this occasion to express the obliga-
ton of our company for the consideration
shown us in this particular instance.
A. great deal has been said about the dis
elimination uhe result of this decisionl.
practised by our company in favor oil the
Standard Oil Company. There Is no such
discrimination, and there has been none,
for there are Others operating upon our
lines i'm competition with the Standard Oil
Company under the same circumstances and
conditions.
Although the railroad had acted entirely
within its rights it Rad yielded, Mr.Mellen
sa;5. 10 the adverse public opinion excited
by this Misrepresentation and had ordered
proratinu arrangements upon petroleum
and it's products on our lines other than those
who're there interviewed a ferry or float
transfer. He continued.
There " but one director upon our board
who is in any way connected with the Standard
oil Company. and he has not attended a
meeting of a committee or OF the board Tor
over a year. The whole stock interest in
our COMPANY owned and controlled by mem
bers Of the STANDARD Oil Company, directly
and indirectly. so far as can be discovered. is
less than 1000 shares. less than one one
hundr edth part of the voting power Of the
q, stock of o~ur'company in fact, and a majority
of our directors are by our charter required
20 be. and are, bona tde residents OF the
state of Conn ecticut.
There was a lesson, he went on, to be
drawn from all this smoke and noise, to
wit:
We are on the eve Of a great change in the
handling of our railroads. We have learned
they arc not private property. We know
now that the public has rights they are dis
posed to assert. aud thore must br a larger
measure OF control than ever before con-
coded. II Is useless 10 deny there have been
abuses, it is impossible to allny the distrust
and suspicion they hav We excited.