Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-03-21
IF THERE WAS LAW FOR 1T
Would Send Him to Penitentiary for
Alton Deal.
HE MIXED THE ROAD DRY
And Those Who Will Suffer Will Be
Those Who Purchased
the Bonds.

When the veteran Senator Cullom of Illi-
nois was asked at the White House today
If he had talked with the President about
the railroad and financial situation, he said:
mo. except to say to him that if had my
way. and there was law for it. would
pretty nearly send Hartman to the peni-
tertiary for his work in the Alton deal.
He certainly MIXED the road dry, and tie
people who will suffer by it will be those
who purchased the bonds
Relative to the suggestion of centralizing
in the federal government the right to deal
with railways. Senator Cullom said: TT
would be difficult to consolidate the powers
of the states and the federal government in
the hands of the latter. Both the states
and the national government should go
slowly and carefully in their legislation in
the future. Yes. I have seen a good deal
ton of railroads so that the interstate COM
merce commission might know how to base
rates and could handle the matter of stock
issues to prevent watering. but our
committee In the Senate went into that
thing somewhat carefully on the bill SUBJ
mitted by Senator La Toilette We did not
have time to give the question the i'm
portant consideration we should have de-
sired. owing to a short session. but we
found 1T would take an immense appropria-
ton and an army of government employees
to do this.
What Senator Overman Thinks.
Senator Overman of North Carolina, who
was White House caller, expressed the
hope that the rights of the states would
not b, interfered with any further Trench
ing upon the rights of the states is growing
to be dangerous thing" he said, land I
hope to see it stop. When the states are
deprived of the rights given them by the
Constitution paternalsm will follow. and
the death of the republic will be next
There are those. acquainted with the fire
insurance situation. who believe that rate
war may result from the present conditions
but that In the end the insurance men will
come together and form new organiza-
ton 1t Is believed such new organization
will not be under the control of the middle
department.
Proposed Raise in Rates.
Preparations are being made by a num-
Der Of the railroads to increase freight rates
to offset the action of some of the state leg
islatures in passing 2-cent-a-mile passenger
bills. Formal notices have been filed with
the interstate commerce commission an
nouncing the intention of the trunk lines
west of Chicago to raise the rates on grain
from LIE cents to 1912 cents on April 1. A
similar raise is proposed on coal and iron
products
The excuse of the 2-cent-fare bills given
by the railroads is hardly considered ade-
quate. There are many passenger excur
sion rates now that are below the 2-cent
limit, and most of the railroads have given
formal notice of canceling these rates to
make up for the scaling down of some of
the other passenger rates. Then there is
the feature of the new law eliminating
bates and thus securing very large sums of
money to the roads if the law is observed.
The cutting off of passes is another very
large item of saving, according to the
statements of the railroad representatives
before the interstate commerce commission,
so the proposal to raise rates is to be re-
sisted by the commission and the case will
be given test in court as speedily as
possible after it is put into effect
One reason the railroads allege as the
need for more money Is that the public has
become frightened at the clamor against
the roads and it is more difficult than
formerly to borrow money. They claim
also that labor and materials have both
advanced enormously in price, and that 1t
that are absolutely necessary in the man
agement and extension of the roads.
The interstate commerce commission will
contest any proposal to advance rates be-
yond what they think is lust and reason
able" point within the meaning of the rate
law, so the case probably will be taken to
the Supreme Court of the United States to
settle the constitutonality of the law and
the right of the commission to fix rates.
Arrangements are being made to give the
case as speedy hearing possible when
II comes up.