The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-05-22
Member of the Interstate Com
merce Commission
Addresses the National AssOc1a'
tiOn of Manufacturers.
RAILWAY REGULATION
Must Head Off the Demand for
National Operation.
Government Should Take the
Initiative in All Complaints.

New York, May 22.-Charles
Prouty, member of the interstate COM
merce commission. addressing the
National Manufacturers association
today, said the government should ex-
ercise some direct control over the
capital accounts of the railroads and
that it is probable Interstate railways
should be valued by the government.
Mr.. Prouty said:
Government regulation is itself on
trial. Regulation must be sufficiently
strong to choke the cry for national
operation. 1 am not asking that addi-
tiOLal powers be conferred upon the
interstate commerce commission. We
must create a department of railways
which should be charged with that
part of regulation which is properly
administrative and executive.
The railway company should not
be deprived of its property by reduc
tion in its rate until it shall be given
a fair hearing before some disinter-
ested tribunal but the duty of begin
ming a complaint rests upon the gov
eminent and should not be cast upon
private individuals.
1T is probable that interstate rail-
ways should be valued by the ma
tional government.
The government should exercise
some direct control over the capital
accounts. 1t is not possible to fix
rates SO that a given per cent will be
returned to the stockholders. Mr..
Harriman's options in Chicago & AL
ton did not directly affect rates on
that railroad SYSTEM. but they did
create a condition which is for all
time a perpetual inducement to the
imposition of unjust charges. What
has been done cannot be corrected.
All that has become a vested interest
it would be both unjust and unwise to
disturb, but with respect to the future
- -
past. When Mr.. Hartman, by deal
ings like those in Chicago & Alton en-
riches himself to the extent of many
millions he has not created that
money; that he has merely transfer
red from the possession of some one
TO himself. Railway securities ought
to be favorite investment for the
savings, of the small and great alike.
1t is not a feeling of apprehension that
the people will conf1scate any railways
which prevents permanent investment
in railway stocks, but rather uncer-
tainty as to the future of these stocks.
When it becomes certain that railroad
stocks or bonds can be issued without
the consent of the government and
that every dollar which comes from
their sales shall be legitimately in
vested in the property and when no
interstate railway can buy a dollar in
the stock of any other railway with
out the consent of that railway rail-
way securities will be much more
likely to assume their proper place in
public confidence.
ANY comprehensive scheme of leg
islation should give to the railways the
right to form and maintain traffic as
sociations and to discuss and agree
upon competitive rates.
The announcement of the result of
a poll of 5000 members of the ma
tfonal association on the questions as
to whether and how the tariff should
be devised is expected to be one of the
most interesting features of the con-
vention.