The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-10-21
RAILROAD NEWS.
President Ripley of Santa Fe
Talks About Legislation.
Is Out OF Sympathy With Pro-
posed Measures.
BELIEVES IN POOLS.
Make 1t Subject to Approval of
Commerce Commission.
other Items CT Interest to
Railway People.

| Ing ChicaSo railway journal has
been putting inquiries to various rail-
! way presidents as TO their opinion on
! threatened legislation. MIR. E. P. Rip
/ ley, president of the Santa Fe COM
pany, answers the questions asked as
| follows:
Dear Sir:-I have yours of the 10th
instant, inclosing memorandum outlin-
ing certain probable legisla ton during
the next session of congress, and ask
corning same:
1. Prohibition of railway consolida-
tion when the combinations include
INES that are actually parallel or that
may easily become so in effect in their
business relations with each other
see no reason for an absolute pro-
hlblt1on of this nature-on the contra
~. think there are many cases where
consolidation of parallel lines is clearly
TO the advantage of everybody concern
ed whether as shippers, or carriers or
producers, or consumers. am very
clear that there should be no actual
and absolute prohibition of such con-
solidation. The most that should be
done in this line is to provide for it's
approval by the government before it
is carried into effect
2. Prohibition of joint ownership in
parallel lines and entire separation of
d1rectorateS and official staff.
Separate Directorates.
I think it is going too far to separate
by law the directorates and to say that
a man may not represent his own fin
ancial interest on the boards of two
different companies. Any such prohi-
bition would be ineffective, if made, be-
cause in practice should a man own
large blocks of stocks in two competing
companies it is an easy matter for him
to obtain as his representative on the
board of one of the companies a man
who would be entirely subservient to
his wishes and virtually represent him
and him alone.
8. Permission to pool earnings be-
tween lines, subject to the approval of
agreements by the interstate commerce
commission and the filing of same with
the commission.
I think everybody who has given this
subject any study realizes that the
passage of such an act would be not |
only wise, but would be doing nothing |
but simple justice.
4. Permission to form and conduct |
for the PRONUNCIATION of |
rates and the issuance of tariffs
There ought to be no question what |
ever about this nor is there any rea- I
son why these associations should re-
commission. It is a simple
necessity of the business.
5. Prohibition of the unrestricted is
sue of securities for extension of old |
ines and construction of new ones, such
securities hereafter to be issued after
and approval by the gov
also the clause forbidding the
Use of the surplus of any road in the
of the stock of any other road,
lnless it can be clearly shown that such
urplus is not required for the better
nent and maintenance of the property,
nd then only for the purchase of stock
f connections forming a continuous
through route and in no way interrupt
ng the control or operation of another
arallel line.
Restriction Not Believed In.
1 do not believe in such restriction. 1t
GEMS to me that company should be
ermitted to issue such securities as in |
he judgment of its directors, are nee
ssary for corporate purposes. In gen.
raj the public has little or no interest
1 the amount of securities issued by
ailway companies, such securities haV- |
lg no effect on the relations of the ,
arrier to the shipper, and any attempt
n the part of the government to reg ,
late the amount of such securities will
e an effort in the direction of pater-
alism and what 1 believe to be unwise ,,
estriction. The injured party in the
ase of an OVeriSSuance of securities is ,
he party who invests his money in such !
base of the question has anything to
0 with interstate commerce, or is any l
hing in which the government of the
nited States should NEEDLE. [
In general, and as regards the entire a
ne of reasoning upon which this sug- '
asted legislation is based, permit me I
say that L am entirely out of SYM a
athy with it, If, and so long as the t
overnment interposes between the b
lilroad and its patrons and under V
Lkes to protect the latter against the e
rmer, 1 do not see what is gained by v
~ further legislation, nor do I see that b
is the part of good government to in S
rfere with details so long as 1t ac- a
'mpliahes by direct methods the limi-
ton u rates.
E. P. RIPLEY.