New-York tribune., 1907-03-16
BLAMES MANIPULAT0RS
Ifr. Hepburn Says They 1rc Re-
sDonsibIe for Wall Street Troubles.

IFroT Tho Tribune Bureau
Washington. March I5.-Representative Hep
burn Of Iowa. chairman of the House Commit
tee on Interstate and Foreign Commerce, who
steered the Railroad Rate bill through its tenn
pestuous passage. had long talk with the Presi-
dent this afternoon about railroad affairs. and
when ne left the executive Offices had few re-
marks 10 make about Wall Street.
Before going any further into the subject II
would be we'll To get one thing firmly impressed
upon your mind" said he, and that is this: All
the so-called anti-railroad legislation that has
been effected in the national and state legislst-
ures has not had one iota TO do with the con-
tortons Of tho railroad stocks within the last
few days. The railroads themselves are doing
a bigger business now than they have ever done
before The country is in the midst Of pros
perity never before dreamed Of The real reason
and the only reason for the way stocks have
been hammered as they have is found in the
shortcomings of the railroad manipulators them
selves l do not mean by railroad manipulators
railroad operators, understand. They are totally
different kinds of fellows. There Is Mr. Harri-
man. He is manipulator not an operator. al
though he may pose the latter. Would you
to-day invest dollar Of your hard earned
money in q stock that you knew was being used
as a football? Well. think not. The railroad
manipulators have themselves 10 thank for the
loss Of the public confidence.
1T is perfectly absurd for railroad men to
say that adverse legislation has affected their
earnings. The earnings as a matter of fact.
have not been affected in the least In the first
place, the twO-cent-a- mile rate that has been
put into effect in a good many OF the states has
been benefit instead of an injury. 1 recently
made Il thorough investigation of the earnings
of ono road in ons of these states. and COM
pared the figures of the last report with one Of
the reports a couple Of years ago. Under the
old system, when they charged what they
pleased. when they gave passes to the favored
few, when they gave reduced rates to clergy
men and certain other worthy or charitable in
dividuals. and every once in while ran ex-
cursions here or there at greatly reduced prices,
they made on an average. all their passenger
traffic put together. two cents and a mill mile.
Now they get two cents, and are spared a whole
lot Of bookkeeping and correspondence they
used TO have 10 look after AS a matter of fact.
the amount Of money received from passenger
traffic is small compared with the volume Of
freight, that the two-cent rate would cut very
little figure one way or the other. 1t is on the
hauling Of certain commodities that the rail-
roads lose money, when they do lose, and not
on the passenger traffic rates reduced by state
legislatures.
y the railroad operators would only use COM
mon sense and wise management in the conduct
and there would be less discomfort on the part
OF the travelling and shipping public In a re-
cent speech Mr.. Hill. of the Great Northern.
said that the average time made by a freight car
on MS lines was eight miles an hour. II that is
fa"t his cars are doing a lot of lettering on
tho way. lie also said something recently about
thc tremendous amount OF business done now
as compared with the business done ten years
ago. and spoke OF the need OF spending billion
dollars or so FOR Improvements. He said that
bec2"se the freight business had increased a
thousand per cent or so il IS impossible 10
handle the traffic on the roads as they are now
constructed. on many OF the roads for stretches
OF hundreds OF miles there are 10 more than
three or fouT .rains day. Suppose that the
New York Central 100 trains a day each
! way over every inch OF double track II has IN
/ its system. do you think that would overcrowd
the lines; Why. II would mean an Interval Of
NOR" than fourteen minutes between trains
eight OF ten miles. would that oyercrowd the
poo rails? out in the Western districts II they
Were asked to fifty trains day each way
the railroad managers would hold up their hands
In holy horror; Yet II they did so there would
/ be a. Interval OF twenty-eight minutes-nearlv
half an hour-between trains Still they talk
abodt oVercroWding their roads II they are
asi'e 10 put on an extra train ten or
twelve = day. and Immediately begin to discuss
! the subject OF issuing more bonds for the re-
when
/ Issue more bonds they wonder why the public
/ does net seem ready to bite and complain OF
/ hard times.
'iiard times? Why, all this railroad stock
panic Is not going TO cause the country at large
/ even 10 SIT up and take notice. Wall Street can
perform any contortions IL pleases and tho coun-
try VIII be perfectly ObltviOus 10 its spasms In
fact. Wall Street could go to smash and he v.iped
! on the map, and the country at large would not
/ be affected In the slightest degree Wall Street
! - very small fraction in the great big equation
| of the countrys prosperity. IN fact Wall street
Is merely allowed to exist through the generosity
/ Of the rest OF the country. If Il were not for
! the money the West lends to Wall Street ] won
| der where the much puffed I'D little district
would be, anyway? You hear some one talk
every once In while about the West needing
| money 70 move its crops. That's all bosh and
! nonsense. The West is to-day lending Wall
! Street millions upon millions of dollars a. . or
! 2iz per cent.
To put il plainly and truthful Wall Street
! is of that class which tolls not and spins NOT If
| merely grabs, and the sooner the country he
| comes convinced OF that TACT the better or the
country win be" 80
NEW ORLEANS STOCK BROKERS FAIL