Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-11-21
Commissioner Prouty Of the
Commerce Commission De-
tends Rate Statute
RAILROAD SECURITIES uNHuRT
Can Borrow Money Easily and Com
mission Will Not Hamper Them-Be-
Iieves Roads Will Be Forced to Add
Equipment Unless They Do So VOL
unfairly.

Chicago, Nov. 81. commissioner
Charles A. Prouty of the interstate
commerce commission takes sharp is
sue with President James j. Hill of the
Great Northern and Northern Pacific
railways, President Samuel Spencer of
the Southern Railway, and other rail-
way officials who recently have declar-
ed that the governments rate regula-
ton policy tends to brighten investors
away from railroads securities and
thereby to disable the roads from max
ing adequate provision for handling the
countrys traffic.
In an interview while in Chicago
yesterday Mr.. Prouty held railroad
managers themselves chiefly RESPONSE
BILE for the present congestion of traf-
tic. declaring they had failed from year
TO year to make necessary additions to
and improvements in their facilities.
AS for the future, Mr.. Prouty said
the roads owners. can make all neces :
sary Improvements without apprehen-
sion of any action by the commission
tending to prevent them from deriving
Il generous profit.
Il came on the commission in 1897,
when business was just beginning to
revive said Mr.. Prouty. Almost ev-
cry year since then business has grown
better and traffic heavier. The roads
have said from year to year, This
thing can't continue. If we buy
enough equipment for this years BUSH
nes we won't need 1t next year. and
they have acted accordingly. This is
the reason why traffic has increased so
much faster than the facilities for
handling it.
'tMr. Hill in his speech in Chicago
expressed fear that the governments
new policy of rate regulation would
prevent the roads from getting money
for needed improvements. They could
have got enough money in the past, and
they can get it in the future. Mr.. Hill
Mr. Spencer and other gentlemen said
before the new rate law was passed
that it would paralyze the railroad in
dustry. On the contrary the lines are
earning more money than they ever did
before, and their stocks are selling for
more than they did when the law went
into effect.
Il believe that the tendency Of rates
ought to be downward as traffic grows
denser, but the commission contem-
plates no wholesale reductions. On the
average, rates are not exorbitant and
railroads probably will gain more by
the cutting off of rebates and passes
than they will lose by reductions
"The roads will be able to get
enough money to make needed addi-
tons to their facilities, and if they
don't make them voluntarily I believe
they will be forced to make them I
don't say that favor legislation with
this object, but believe continuance
Of the heavy losses that chronic con-
gestion and delays cause shippers will
arouse a public sentiment which will
demand such legislation"
Regarding a recent report that Pres
ident Roosevelt would recommend in
his annual message legislation legaliz-
ing the various railway traffic asso-
Citations. Mr.. Prouty said:
IT have no information that the
president will make any such recon-
mendations, but personally 1 am in
favor of such legislationS There is no
doubt the existence of the associa-
tions violates the antitrust law. New
er-the-less. they serve useful pur-
pose, and if their proceedings were
made public and the commission had
supervision of rates made by them,
the associations would be robbed of
their power for HARM
Mr.. Prouty was on his way to Mil
waukee, where an investigation of the
elevator situation under the La Fol-
lette resolution will be made. Hear
ings will also take place later at Min
neapolis and Duluth.