The Topeka state journal., 1906-06-02
Santa Fe Presidents Opinion of
Pennsylvania Exposures.
DISCUSSES RATE BILL.
Thinks 1t WILDE More Injurious
to Community Than to Roads.
and Matters of Interest
in Railroad Circles.

Pennsylvania graft exposures.
Railroad men are necessarily
thrown into close association with
larger shippers, as we'll as with men
who are projecting new enterprises
along the Iine=these associations IN
many cases ripen into close friendships
and nothing is more natural than that
railway officers and employees shoulo
be offered opportunities for investment
in undertakings which they have been
consulted. about It is not necessary 70
impute improper motives to every
who proposes giving a railroad en-
plove a block of stock for nominal
Consideration or even for nothing.
But the railroad officer or employe'
suspicion=he has no moral right 10
put himself in a position when there
may be a conflict between his private
interest and his official duty.
There Is manifest and inherent
improperly in the possession by rail-
road officers of stock in any mines or
manufacturing or commercial lnStllu-
ton who are in position 70 pfoht ~
the official acts of such ofI1cers- 20
fully has this been recognized by TINS
company that almost Immediately
after it's organization In 1895 RUE
was promulgated strictly forDlddlng al
officers having any control over the
distribution of cars or the adjustment
mercial enterprises along our lines, ana
to the best Of my knowledge and De
lief that rule has been strictly obserN-
ed. There have been cases Wnere II
seemed a hardship that an employe
who had saved a little money should
be forbidden to invest it in a venture
which seemed likely to make good re-
turns. especially when the manage
ment had absolute confidence in the
probity of the employe and felt per-
fectly assured that he would not be IN
fiuenced, but the rule seemed so mn
pOrtant that we have felt that no eX-
ceptions should be made ana nave
made none.
AT the same time it is all wrong to
charge with graft or dishonesty all
those officers or corporations who had
pursued different course. nave
known many cases when 1t has seemed
essential to the development OF the nat
uraI resources, tributary to a railroad,
that its owners and officers should
contribute of their private means, ana
believe there have been few cases
where investments Of this sort have re-
suited in favoritism. The code OF
ethics of railroad officers and emp loyes
towa rd both the public and their stock
holders viii compare most fayorably
with that observed by any class of
business men in the country
Il have read the rate bill as it stands
and it is about what L thought it would
be. Some of the senate amendments
rational when it comes out of the con-
ference committee. The appeal clause
does not suit the railroads To my
non-legal mind ii leaves doubt as to
the extent to which the courts have
power to review. That seems to be
left to the courts themselves to decide.
Il do not think the effect of the bill
that will become law viii be injurious
to the railroads. I think it viii be
more injurious to the community by
!. a
of rates than it will be to the railroads.
There is nothing the railroads desire
so much as rates strictly maintained
and an entire absence of rebates OF
discrimination of every sort. This bill
is a step in the right direction, but the
same step might have been taken bet
ter years ago If the interstate COM
merce law had not prohibited the rail-
roads from using the only means they
could to protect themselves and if the
Sherman antitrust law had not been
so construed that they could not do
so.
1.-THE construction and Interpretation
of the original interstate commerce
law is responsible for nine-tenths Of
the Irregularities under it. I never
have objected to an extension of power
of the interstate commerce commission.
provided we might have an able, fear
term. not susceptible to clamOr or
pressure from either side.
I'VE have been getting the best of re-
ports from over the system The crop
situation is the best ever seen. There
Is no more wheat acreage. and the in
dicated yield is heavier than a year
ago. It looks like Z 3 million to so
million bushels for Kansas and 25 mil
lion or more for Oklahoma. Texas
will produce a great deal more than
last year. Atchison territory in gen
eral will produce 10 per cent more.
Except in a small section in the
extreme northwestern part of Kansas
there has been no damage. 1t is from
three to five weeks to harvest and
should we have continuous rain in the
meantime the crop would turn out
badly. That is highly improbable. You
can safely say the crop is beyond the
reach Of drought.
July and August make the corn.
The planting Of that crop was under
good conditions. Acreage IS as large
as last year-about the same In our
territory we raise only about enough
oats for our own consumption We
have heard of no complaints about that
crop The only complaint IS from
sections of Texas. where the cotton is
below average. but. as in the case Of
corn, 1t is too early to make predic-
tons
'As for San Francisco. we are watch
ing with much interest the effect Of
the re-opening of the banks. 1t is i'm
possible to estimate the effect of the