The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1907-12-27
SUPPORTS
PRESIDENT
Does Chairman Interstate
Commerce Commission
in After Dinner Talk.
HITS RAILROAD RATES
Says They Are Much Too High In
Some Sections and Low in Others
Advocates Government Control

The policy of the administration
and the attitude of President Roose-
yelt toward the corporate interests of
the country, were warmly supported
by Charles A. Prouty, chairman of
the Interstate Commerce commission,
before the Economic club in New
York last night. Mr.. Prouty was one
of the speakers who discussed the
tonic: THE Present Federal Policy
in Relation to Trusts and Corpora
tions,' before the second annual din
ner of the club. in the banquet hall
of the Hotel Astor, and the remedies
he outlined were warmly applanded
by nearly 500 bankers, business men
and economic workers THE recent
financial crisis was not due to rail-
road rate regulation or agitation, as
is persistently stated said Mr..
Prouty. This so-called panic orig
mated right here in New York; it
happened simply because the public
believed your institutions were rot
ten, and that your securities Wtte I'M
sound AS a matter Of fact this was
not so, and there could have been no
more splendid tribute to the solidity
of your institutions than the history
of the last six weeks.
Mr.. Proutys remarks were con-
fined principally. to the railroad ques-
ton. 81 don't know what trust is,
and certainly know nothing of the ad-
ministration policy toward trusts"
he said, but the administration has
a definite policy as regards the rail
roads, that is wei. understood. | am
personally prepared to defend that
policy, because | believe it is right,
that what has been done is right,
but | firmly believe we must go fur
ther. | put this upon four grounds:
|. The railroad is a public SER
want. The duty which it discharges
is strictly public duty. There can
be no equality of business opportun-
ity until every member OF the public
receives that service upon alid under
the same terms and conditions.
3. The railroad is a monopoly. So
long as the money invested in that
enterprise can lay upon the entire
community whatever tax it sees tit,
free from all governmental restraint,
there can be no equality of business
opportunity.
3. Transportation by railroad is
a thing of such vital importance to-
the business operations of the toun-
try that the government itself must
see to it that the facilities afforded
ara adequate.
4. In view of the three prece ling
propositions and in the further view
that railroad stocks and bonds ought
to be fayorite investment, the gov
ernment must supervise the finHnclai
operations of our railroads.
My first proposition has passed al
ready from the realm of discussion
into accomplished. fact. Forty years
ago the railroad transportation OF this
country was universally conducted
upon private contract. Every shipper
contained the best terms which his
business or his influence would secure
him. Twenty years later, actual eX-
perience had shown that an advan-
tage in the freight rate, often very
sli@h, advantage, gave to the lndl-
yidual or the locality enjoying 1t,
monopoly of the business, and the re-
suit was the passage Of the act to reg
ulate commerce, which forbade all
preference.
1t is said that railrcad rates III this
country are not excessive at the pres
ent and this may be true, on the
whole They are too nigh in some
sections; too low in others. ] doubt
if the general average is greater than
it ought to be. But this results from
a condition which no longer exists.
The basis OF our railway rates fixed
in a period when there was coripcti-
ton; when there was no interstate
commerce act end no published tariff;
before the great combinations of rc-
cent years. Those conditions have
gone and competition in The rate has
gone with them.
Today rates are being advanced. LII
many instances these advances are
proper: ir others they have been bit
terly attacked by shippers. There is
no method by which the imposition or
improper railway rates can be pre-
vented except by its establishment
through governmental authority OF
proper rate. This principle was rec
ogniZed in the amendments or l9O6.
If was the most vital thirg in those
amendments. | call your attention to
the fact that it is due to the present
federal policy alone that, fer tine first
time in our history, the shipper has
tribunal to which he can submit the
feasonableness of the charge Which
he is required to pay for interstate
transportation, with the assurance
that if his claim is sustained, Il rem
edy can be granted.
Mr.. Prouty submitted that the gov
ernment 81 ould have decisive power
to regulate, not only the railway
rates, but the facilities and their use,
and the financial aspects of railways
as well. "The government must have
authority 10 compel railroads to build
needed additional tracks, and to pro-
vide additional needed equipment