New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-12
BABR ON RATE QUESTION
President of the Reading against
Government Regulation.

harrisburg. Penn. Feb lin a letter presented
~ the Pennsylvania Legislature tonight President
George F Raer Of the Philadelphia & Reading
galway Company. writing on the subject of rail-
rad legislation declares there is no necessity for
government regulation, other than to prevent I'M
reasonable Determinations.
..o,-ernuent regulation" he asserts. because II
must be by fixed and rigid rules can harass and
annoy but # cannot benefcialIy assist the varying
demands Of business
NJ Raer's letter to the Legislature was called
firth by the general impression. he says that i'm
7o-tant legislation affecting the railroads OF the
s,a+e Is 10 be passed this session. He declares
+be growth Of the railroads in the last fifty
has been the measure OF the development of the
state
..In the development of railroad transportation"
the letter continues 1t IS doubtless true that mis-
takes have been made. Here and there some dis
honesty has been disclosed but it Is triding COM
pared 10 the magnitude Of the work and the enor-
nous sums Of money received and expended. Be
cause Of careful business scrutiny, the average
honesty o. officers and employees Is not below that
OF the community"
President Baer asserts that the present Pros
pertty Of Pennsylvania could not exist had Il not
been for the good service and reasonable rates
established by the railroads Both passenger and
freight rates. he says have been reduced from time
10 tine 10 far below the rates authorized by char
tiers The letter continues:
The laws Of trade are the inexorable factors in
sxing rates Railroads are perhaps more interest
"a than ANYBODY else In developing business alonS
heir lines. Only in this way can they get tTa'nC,
and TO get that traffic they must TX rates when
viii enable the manufacturers. merchants and pro
ducers Of every kind 10 sell their products IN the
markets Of the world.
II YOU study the railroad transportation OF other
Countries and 4 with our own. you WIZ
ind that notwithstanding the greater density OF
opulation in many European countries (WnlCh
laura ly should bring about lower rates., the lac
that our railroad transportation Is the cheapest
nc best in the world
Much of the capital invested has produced no re-
turn It IS broadly true that the great rallroeo
systems of Pennsylvania oTercapitaliZed IT Is
rot true that their capital stock securities nave
teen watered. Il is true that the actual value or
! speak autkoritativey for the Reading system
Each year heavy expenditures must be mace 10
meet public requirements from which no subStan-
tal increase OF revenue IS obtainable The abohton
nails in cities at numerous cost are examples. How
can the railroads on making these heavy eX-
penditres increasing their expenses by higher cost
Of wages, materials and supplies and taxes and at
the same time decrease passenger and freight
rates?
The national government apparently the as
sumption that the power regulate commerce
gives q wholesale power to regulate the business
of the country has given the Interstate Commerce
Commission large powers over transportation.
Time and experience alone can clearly demonstrate
the effect OF what il may do the transportation
sld general business of the country It viii simply
be mischievous legislation for Pennsylvania 10
create similar commission. II is not needed, and
Z VIII serve useful purpose.
Notwithstanding the eZtT2o-diEaTy-and, some
good citizens think, eXtravagGnt-sums expended
IN the construction Of the new capitol, there Is
considerable balance in the state Treasury. This
more revenue than Is required from government
honestly ana economically administered