New-York tribune., 1907-09-18
PITTS BLAME ON STATES
RROWN ON RATE LAWS.
Central Nan Says Legislation Did
Not Eut;reIy Cause Depression.

William c Brown. senior VICE :,
,be New York Central Hudson rive nan
-os5 Comnanv discussed fully YESTERDAY 'iie
,,si,.ss ,on5itions Of the country, especially as
-. : ,,,a ,.iIroads and the effect of agi-
tation and legislation pO'ii S
srplicable 10 them.
~ errrasse5 his opinion of the recent Penn
svlyania court decision relative to the state
2-oert fare law and also Of the utlerdiceS VI
Chairman Knapp Of the Interstate CoiilIiieite
Commission before the railroad tratnc men III
chicago last Saturday in regard TO the Sher-
man antitrust law
~,fr Browns attention was called to a letter
written by him in January. 1907, to joseph
,-;,,,.o r. the Washington statistician- IN
which he in reply TO inquiries from Mr. Nimmo
IS 10 his opinion on the effect of threatened asi-
,a,inn and legislation at that time. made Ger
tain predictions which in the light Of subsequent
s,-e,7rs are OF peculiar interest to many at TINS
time.
In this letter Mr.. Brown expressed the opinion
that the spirit Of hostility against the ran
roads which seems to be felt by members oi
both parties and by the administration "helIler
real or not is rapidly creating a 1eelhs OF uis
trust and is discTediting the railroads q '''o
country 10 such an extent as to make II Nei'
d7c,;lt at the present time TO secure any il"iieS
for needed improvements, and promises 70
Il
future" 1T.
= o-.-5 to this Mr.. Brown said that Whie
.h a,4z.,,,+,- IN the part of the railroads IN op-
tanning funds for necessary Improvements anu
engagements could not be charged eh'i'ei3 ~
adverse legislation. there was no ques'ioi'
what such agitation and legislation hdu eieo.iS
augmented the difficulty. In this conheC'ioh ne
said that small part of the trouble indeed Mas
attributable TO national legislation out " ""'
largely due to unNise. uneconomlc ana III ooh-
s45e-e5 laws passed by the state legislatures
TAKES Up Two-CENT FARE LAWS
For instance" said Mr.. Brown "a large
number. If not a majority. Of the western states
have passed so-called two-cent passenger 1aTT
laws and the best commentary on mis- ACTON Is
the result Of the first judicial investigator
which has been had, which happens to be IN the
populous State Of Pennsylvania where the Ia"
hae f,een declared unconstitutional because un-
remunerative-
HIf there can be any doubt whatever as to the
fairness Of the two-oent fare law in the State OF
pennsylvania. where the population 10 the
square mile is vastly greater than that of any
If the Western states where similar laws have
been passed il seems 10 me it must remove the
question from the realm of doubt in such states
as Missouri. Iowa. Kansas and Nebraska
Based on a connection with Western roads OF
more than thirty years. do not hesitate TO say
that in my opinion, there is not a single state
In Ehich such legislation has been enacted where
fair impartial and thorough investigation viii
not result in similar decision.
q have no hesitation in saying that there are
hundreds of trains running on the less i'm
rortant branch lines in each of the states where
1wo-cent fare bills have been passed which are
run solely for the accommodation of the public,
ted a 2
,hree-renr 2 mile basis. 1 doubt If any train
could be run in many Western states for a two
cert fare except at a loss were it not for the
interstate traffic even on main lines and the
most profitable trains"
In your opinion. is the President or the ma
tional administration responsible for this con-
6i-ion of things in the several states?' was
asked
.T think I have read every public utterance
Of The President in reference 70 the question OF
railway regulation and control. and DO not re-
cal 2 single instance in which he even renotely
suggested the desirability of necessity for a
reduction In the revenues of railroads. Such
utterances as I can now recall suggested some
doubt as to whether, in view Of the very large
increases in wages and the cost Of material. the
.x5e,tr1 f,asis Of rates might not reasonably be
somewhat increased.
The responsibility, in my opinion, rests not
With the President. but with the agitators in the
various states who, without anything like the
careful consideration which the importance OF
the subject demanded. have passed almost in
nYne-able laws all calculated to cripple and
e-nbarrass great lines Of transportation"
-.I1nanciers in Wall Street report growing
tendency against investments either in new
business enterprises or in the extension OF exist
sng enterprises Is this. in your opinion. due in
shz legislation
refery"
The conditions which current reports say are
rrez-ale-. .n the business world to-day. MT
Brown replied, are the Inevitable result OF III
advised lesaslation and agitation against the
great business interests OF the county espe-
ciallv the railroads. When confidence Is lack
ing capital also IS lacking. Confidence certainty
IS lacking at the present time, and therefore
csuirsl is not forthcoming. and extensions Of
business and the development Of new enter
prsses perfectly safe and remunerative Invest
,nen-s ,,r5er ordinary conditions. are halting-"
'Eyas this reported tirnidity Of investors at-
fected she rail-oads?"
Contemplated improvements by railroads.
both IL additional equipment and the constr
ton CT ne-y lines involving very large amounts
have been abandoned. and i believe the year
1905 viii witness an almost complete cessation
Of such improvements so essential 10 the con-
cinued progress and prosperity OF the country.
In regard TO the wisdom of Chairman Knapp
declaration against the Sherman antitrust law.
Mr. Brown said:
1T is entirely consistent with all OF Chairman
Eaapp's previous declarations on this suo)ect'
and II the only conclusion that can possibly pc
arrived at as a result of exhaustive ana uh-
p-ejudiced study or Investigation of the SUBJECT
II may be OF interest, I'm this connection' 10
state that IN my presence. during tle tiihe 'iie
L. nS nra W