The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1907-03-21
ON RAILROAD RATES
Governor-EIect Hoke Smith
Speaks in Cincinnati.
TALKS TO BUSINESS MEN
Suggests Inauguration Of Competition
Through Publicly Owned Lines.
Favors Extension of w. e. A.
. Road to the Sea.

GASdS ~ NC SSN'
Governor-elect Foke Smith Of Geor-
gia delivered the chief address on
Thursday night at the annual BAN
auet in Cincinnati Of the Merchants,
Manufacturers and Ship oers' A5socia
tion.
Mr.. Smith discussed the transporta-
ton problem and attributed the evils
OF the present day to those who are
suffering from them, the business
men, as a result Of their failure to
take an active part in political affairs
and demand the passage of legislation
prohibiting the Issuing OF fictitious
railroad securities and preventing rail
soads from forcing the public 10 be
taxed to- pay dividends on such wa
tered stocks and bonds.
He conten1ed that additional pow
ers should be given the interstate
commerce commission and the various
state railroad commissions and de-
clared that something should De deae
to prevent the courts from being so
ready to block remedial legislation
with injunct:onS.
Taking up the situation in Cincin.
nati and rates charged from that city
to the southeast, MI. Smith declared,
that Georgia will certainly extend its
railroad to reach tidewater and said
that he believed that if railroad,
owned by cities or states, were built
between Chicago and Cincinnati, this
IN connection with the Western and
Atlantic would control such large
volume Of business that the Cincin-
natl Southern, owned by Cincinnati,
but operated by the Southern railway
under a long term lease, would be
forced to terms, and that this com
t;nation could give sucn rates from
the lakes to the South Atlantic coast
as to force all competing lines to
charge only rates representing 1 just
income on a fair valuation Of their
assets, Mr.. Suith said in palt:
Facilities furnished and rates
charged by the railroad companies
regulate almost the entire movement
OF person an1 property. Most men
can stay at home and avoid high pas
senger rates and poor accommoda-
tons. but freight rates and facilities
enter necessarily into every avenue
CT life.
1.-The farmer must depend upon the
railroad company for much that he
.ases 10 lcake his crop, and again he
must depend upon it 10 ship his crop
to the market AS the rates are high
and the facilities poor, the net profit
which comes to him from his labor
is iessened, and the value Of his farin
decreased.
"The merchant buys his goods in
che market and frequently ships them
from mis- store to distant market to
supply his customers. Ereisht rates
and freight facilities rest as con-
sta1t burden upon his business.
"The manufacturer gathers raw ma
tefial from all over the land and ships
Tie perfected product of his factory
20 distant states. freight rates and
freight facilities form a most import
ant part in determining whether his
efforts shall be crowned with success
or failure
THE control of the railroads OF the
country has passed from trained rail
road operators to bankers. who Spec
uiate in railroad stocks. A notable re-
suit Of this condition is withdrawal
of authority from the loca! manage
nent and local superintendent. the
reduction of salaries to those actually
doing the work of transportation, aud
the dwarfing Of the power and capaci-
ty Of the men upon whose manage
ment the public must Immediately de-
rend. To this, at least in part, Is due
the recent tendency towards less
efficient service"