Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-08-20
CONTINUED From Page 1. Col. A.


tendency which, II not stopped. will
lead to the absorption of all the rail
roads of the country into one hand
Rate Bill and Proposed
Amendments Not Socialistic. But
the Opposite.
The contention on behalf of the rail
roads. already noticed. that such sup.
erVision as the rate bin and these sug-
gested amendments afford. Is socialist,
and tends 10 government ownership, Is
utterly without basis. Efficient regu.
latiOn Is the very antidote and peven-
tative of socialism and government
ownership. The railroads. until now
have been permitted to WELD without
any real control the enormously i'm
p0rtant franchise of furnishing trans
%portation to the entire country. They
have constructed 230,0 miles OF
road. In certain respects they ave
done a marvellous work and have af-
fOrded transportation at a cheaper
rate. per ton, per mile and per passen-
ger, than In any country in the world.
They have. however. many of them,
shamelessly violated the trust obliga-
ton they have been under to the pub
lie of furnishing equal facilities at
The same price to all shippers. The
watering of stock and bonds and the
0ver-capitalization Of some of them
for the profit of their managers have
prevented the needed improvement OF
their railroads in construction and
equipment. The tremendous demand
for Increased facilities due to the enor-
nous growth of business shows the
inadequaey of their equipment and
construction. While they might not
have been expected TO meet in full
such an extraordinary demand, the
obligations some Of them have as
sumed in the form Of stocks and bonds
4. a-Ia.Is FA.T Iag a., ..,a
they represented been put into the
roads in good faith, the shortage of
cars, equipmenta nd i~nadequacy Off Dad
bed and track would not be so great.
They discharge a public function.
They have been weighed in the bal
ance and found wanting. The remedy
for the evils must be radical to be eff
fective. If II is not so. then we may
certainly expect the movement toward
government ownership will become a
formidable one that n be stayed.
objections TO Government Ownership.
am opposed to government own
ership-
First-Because existing government
railways are not managed with either
the efficacy or economy of priVatelS
managed roads and the rates charged
are not as low and therefore not as
beneficial to the public;
Second-Because il would involve
NN tAH tIlAiAAu VI AtA AAAAiAA NNhAf'
billions of dollars to acquire the in
terstate railways and the creation OF
an enormous national debt.
Third-Because II would place IN
the hands of a reckless executive a
power OF control over business and
politics that the imagination can
hardly conceive. and Would expose our
popular institutions TO danger.
Proposed Railway Regulation Not
U-... NNasI. .Ng.sa..al taaa ?
The supervision proposed need not
materially reduce the legitimate opera
tion of individualism in railway enter
prise. 1t viii indeed limit the oppor-
unity to accumulate enormous for
tunes through over-capitalization or
secret rebates. bat the legitimate proht
which comes from close attention 10
operation. to efficiency of service. and
economy In details and from broad
conceptions OF new methods Of reduc-
ing cost without impairing the service
will not be disturbed In the slightest.
There is no attempt TO take away the
property of the railway companies
there is no furnishing of public
money to the enterprise and no publlc
officers are required To administer the
property. There is no more attempt IN
this law to make transportation a
government business than there Is in
the national banking act TO make
banking a government business.
Favors Railway Rate Agreements If
submitted 10 and Approved by
Interstate Commerce Commission.
The movement OF competing railway
companies to consolidate arose origi-
nan from fear that the antitrust aet
forbade them to make agreements
as to uniform tariffs. If they We're
now permitted to make such agree
ments subject to the approval OF The
Interstate commission, such
a tendency would lose much OF us
force. II Is impossible to prevent cont
netting railways from seeking to make
their tariffs uniform in order TO pre-
vent an unending and disastrous tarlii
war and though such agreements are
against the law, II Is perfectly appar-
ent that taclt arrangements for UNI
formity exist. These arrangements DO
not prevent the operation Of compete
ton, from time to time, as one COM
pany finds that It may acquire new
business without loss by a reduction
of rate and Insists On IL, but they 90
prevent a tariff war which helps |
neither the public nor the railway by
violent fluctuations in rates and thus
to eliminate one phase Of competition, /
il is logical to permit an agreement on
rates. II approved by the interstate
commerce commission, the tribunal
appointed to fix rates. The president
and the commission both recommend
a provision permitting such agree
ments. In this way, there would be
restored that respect for law which /
many railroad men in the last decade !
seem 10 have lost. Moreover, every /
company under such a system would
be a policeman to see 10 il that every I
other company obeyed the agreement (
and the law and strictest obedience I
would be secured.
Physical Valuation.
Mr.. Bryan is most insistent in Dis t:
GUESSING rate regulation that the pres 4
cnt physical value Of all roads i'm the <
country should be ascertained for the 1
purpose Of fixing rates by allowing 20 !
the railroad companies only a fair i
profit on such valuation. Whenever 4
the Interstate commefce commission +
deems IL important as an aid In fix 4
Ing rates 10 determine what 10 would 4
cost now to rebuild any railroad. it |.
has complete power 10 do so; but 10 4
would doubtless be found ia respect !
% most Of them that in spite Of over 2
capitalization and lack Of economy in
construction. land for terminals and 2
right Of way and the cost Of construc- 4
ton. nave increased so enormously 3
that the total Of their securities upon :
which they pay dividends and Interest ;
BE- not much II any in excess Of pres =
emit physical value. More than this. !
physical valuation. rs the president =