New-York tribune., 1907-08-20

,;asr +h,, ,bera ,s In the national banking
act to making banking government ousiiio''
FAVORS PROPER RATE AGREEMENTS .
The movement of competing railway COM en
panies to consolidate arose orlginaIly rom ,1 -
that the antitrust act forbade tneIl 10 iaf ~
agreements as to uniform tariffs. If they were
now permitted to make such agreements suOJeCl
TO the approval of the Interstate CofhiileICe
ConouissioT such a tendency would lose mucn
of its force 1t is impossible to prevent com
peting railways from seeking to make ti!en i.
tariffs uniform in order to prevent an unendlhS
disastrous tariff war. and though sucn agree
uoents are against the law 1t is perfectly appar-
ent that tacit arrangements Tor unlIorIIl'y Els
These arrangements do not prevent the opera
ton of competition from time to time. as one
company finds that 1T may acquire new business
without loss by reduction of rate and insists
on Il but they do prevent a tariff war which
helps neither the public nor the railway by vlo-
lent fluctuations In rates. AS the puphc now
asserts the right to fix maximum rates ana thuS
to eliminate one phase OF competition, 1t is log-
icaI to permit an agreement on rates. II ap-
proved by the Interstate Commerce commission
the tribunal appointed to fix rates. The PreSi-
dent and the commission both recommend a
provision permitting such agreements In TINS
way there would be restored that respect ior
law which many railroad men in the last decade
seem to have last. Moreover. every company
under such q system would be a policeman 10
see to it that every other company obeyed the
agreement and the law and strfcteSt Obedience
would be secured.
PHYSICAL VALUATION.
Mr. Bryan is most insistent in discussing rate
regulation that the present pnySlCdi Ndiue Oh all
roads In the country should be ascertained for
the purpose of fixing rates by allowing to the
railroad companies only fair profit on such
valuation Whenever the Interstate Commerce
Commission deems 1t important an aid In fix
ing rates determine what it would cost now
to rebuild any railroad il has complete power to
do so; but II would doubtless be found In respect
to most of them that in spite OF overcapitaliza-
tion and lack of economy in construction lana
for terminals and right OF way and the cost or
construction have increased so enormously that
the total of their securities upon which they pay
dividends and interest is not much II any IN ex-
cess of present physical value. More than TINS,
physical valuation. the President pointed out
in his Indianapolis speech. and as the Supreme
Court had in effect said before him, is only
of a number of data to be considered in reach
ing what is fair profit upon the investment;
and in determining particular rate the proper
relation between that rate and the total net
profit of operation is complicated with an
infinite variety of other circumstances that II is
most difficult in rate fixing to use the latter to
affect the former The Importance OF fixing
rates, complained of as too great in and of them
selves. IS much exaggerated: for the overwhelm-
ing evidence is that, on the whole. rates in this
country, especially compared with those of
all European railroads. many of which owned
and operated by the government, are low. The
chief evil consists in unjust discrimination in
rates between individuals and localities, I do
not object to valuation. If thought relevant to
any issue. but 1 merely deprecate the assumption
that it is TO be the chief means Of great reform
in rates.
LOSS OF LIFE REQUIRES REGULATIONS
The frightfu loss of life and limb among the
railway employees OF this country. reaching more
than 1900 killed and 65,0O injured in year
has properly attracted the attention Of Con-
gress and the legislatures. II makes apparent
that service in connection with trains of q rail-
way is an extra hazardous business, and may
well call for government supervision and excep-
tional rules TO secure the safety Of the pas
sengers and reduce the danger TO employees.
Congress- years ago. passed stringent laws for
the adoption Of safety devices to protect both
employe and passenger interstate railways
With the same purpose II has recently limited
the hours OF continuous service for which en-
ployes on such railways may be engaged.
LIABILITY TO EMPLOYEES
Finally. II has regulated the rules OF the LA
bility OF an interstate railroad company 10 an
employe injured in It's service. This is q most
important measure. for an unfortunate lack OF
uniformity has existed heretofore in respect 10
the rules OF liability in such cases dependent
on the court In which the case has been tried
The new statute makes everything uniform as
to interstate railroads. 1t has introduced into