The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-06-17
PRAISES GOVERNOR HUGHES
CHAIRMAN KNAPP POINTS TO HIS
VETO or 2 CENT FARE BILL.
Says II Must lave an Eject on Similar Rail-
road Legislation In Other States He
Predicts an Era OF Good Feeling he
tween the Railroads and the Public.

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WASHINGTON. June 11.-An era Of good
feeling between the railroads and the
tlhlic with Il consequent benefioent effect
upon the material welfare of the United
Ssates. il predicted by Martin A. Knapp,
chairman of the Interstate Commerce Com
mission Mr.. Knapp is regarded by many
reople as the COMMISSIONS most conserva-
tive member In an interview to-day he
expressed the belief that present railway
conditions would improve, and that an
abundance Of capital would be found in
time to make needed extensions and i'm
movements to carry the constantly grow
ing traffic of the country. He declared
that in the future, if he read the signs Of
the times Alright, railroad men would
he found supporting, instead Of opposing,
veil considered measures having for their
purpose Federal regulation or control Of
between the States.
Chairman Knapp asserted that for many
wears there had been a marked tendency
toward higher ideals in the conduct and
mana cement of railroad properties in this
country. The same tendency. he said, was
observable in every sphere Of business
activity.
When men say there has been no i'm
rrovement, when they say that things are
going from bad to worse" he said, they
indicate to my mind a quiokened public
conscience which now condemns sharply
what was not long ago accepted with tolor-
ance, il not with approval. For example,
the imitation of the Chicago and Alton, re-
Gently brought to public notice, has pro-
yoked extreme indignation in every quar-
ter. But 30 far from being an isolated or
unique performance, it would be easy to
find numerous operations OF about the
same period Of time much more fragrant
andtneXcusable.
Il wish to emphasize the point that the
average man to-day recognizes as never
before the moral delinquency to many
transactions which not so long ago were
looked upon as rather ~praissworthy con-
captions of business enterprise. Applying
this view especially to railway manage
ruent l find great encourag cement in the
conviction tina railroad mana gers Of high
and low degree, almost without exception,
have now come to accept with sincerity
and unreserve the principle and policy Of
Federal regulation. Not only do they &C
cept it in a spirit Of obedience to law, but
more significantly, as | think, because
ltltl ltCOkllAC llLdI ~ II khl
Chairman Knapp believes there will be
supplemental railroad legislation, but it
will have the approval OF railroad men as
we'll as the public. On this point he said:
In my judgment no legislation is likely
10 he enacted or even seriously considered
which is at all likely to question the valid
ity or impair in any way the value of ex-
listing securities; nor do Ibelieve there will
- -. I--.1-A.z- -I.-L -u--Il $780,
the difficulty of borrowing money for rail-
way improvements and extensions at rea-
sonable rates Of interest. Except as tempo
rary emergencies are provided for by bor-
rowing on short time notes, the money
needed for immediate expenditures must
I've obtained by the sale of bonds and stock.
| think there is good reason for believing
that a we'll considered law regulating the
issue of future securities would in effect
give them an official certificate which
would greatly aid their sale by the assur-
ance thereby given to the buyer.
Whatever may be said as to railroads
and the Inducements which had to be
offered years ago when railroads were con-
structed into sparsely settled sections
and in anticipation of their development,
think the time has come and present condi-
lions are such that reasonable restraint
upon the issue Of stocks Inc bonds would
aid rather than impede the extension OF
railway facilities
Speaking Of present conditions in the rail-
way world, Mr.. Knapp said:
1T is my belief that the general railroad
situation will improve. Two things of
common origin have been in active opera
lion % late to greatly influence financial
ointment. One is the disclosure of the
conduct which has occasioned public sur
Trlse and condemnation; the other is the
: aggressive attitude of the State Iegisla-
'u'as The natural effect of the disclosures
'rhlch have aroused public indignation was
70 create a feeling Of distrust and appre-
tension on the paTtof those who are inter-
cs'ed in other than railroad properties.
am sure there is already some recovery
rom rhe first stage Of indignation, which
syrressed itself in a variety of ways. and that
confidence in the integrity and value Of the
fading railroad securities has been restored.
Then the danger OF further drastic
legislation in States seems TO have nearly
disappeared. Already. / think, there is a
rather permanent belief that some of that
legislation has been unwise. In this con-
lnctlon the sturdy veto by Gov. Hughes
# View York Of the two cent bill. to say
nothing Of the three brakemen bill. has
produced an impression throughout the
country, tor a praCtlCdlly new man IN
political affairs he has secured the conf
4enco of Il large and wider public than the
constituency Of his own State, and when a
man in his position and with his known
rectltude iorbids a two cent law in New
York his action must nave an effect upon
legislative plans Of n similar character in
other States which have not already been
Consummated.
Whether the present volume OF traffic will
he maintained and increased will depend
cry largely upon the way the crops of this
rear urn out. Any one can see that II there
should be a comparative failure Of any
important agricultural product not only
would that mean a diminished tonnage but
inability on the part Of a considerable SEQ
ton Of the people TO continue their present
operations and style Of living, and that
would have lite early reflex action on business
generally"
Going back TO the idea that a change
Tor the better had taken place in railway
management, Mr.. Knapp said;
N is very plain TO me that within recent
wears there has been vast improvement
IN the methods Of railway management as
respects the obligations OF the railways to
~" public. II the practices which were
Characteristic and almost universal less
man twenty wears ago arc cOmDared with