The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-06-17

in this connection the sturdy veto by
Gov. Hughes. Of New York, OF the 2-cent
bill. TO say nothing Of the three-brake-
men bill. has produced an impression
throughout the country.
Sees Change for the Better,
Going back to the idea that change
for the better had taken place in railroad
management, Mr.. Knapp said:
1T is very plain to me that within
recent years there has been a vast im-
provement in the methods of railroad
management as respects the obligations
Of the railroads 10 the public. II the prac-
tees which were characteristic and al
most universal less than two years ago
are compared with the practices which
now generally obtain. il will be seen that
an immense advance has been made to-
ward correct and impartial dealing. In
deed, there has been a marked change
in the average conception OF the railroad
in its public relations.
When the original act to regulate com
merce was passed. railroad managers and
the public as well seemed TO regard the
railroad as a private enterprise. like
farm or a factory. and that the same
methods might properly be employed. II
is now generally perceived that there Is
a fundamental difference. that the rail-
roads are engaged in a public service, per
forming a function Of the state, and that
their operations should be conducted in
accordance with the same fundamental
principles which would be observed If
they were owned by the state and operated
by state agents.
Public Sees a New Light.
In short, II Is coming 10 be understood
a. a part Of the habitual thought Of our
people tlat the right to use the facilities
Of public carriage Is a political right
rather than contract right. And, there
fore. any preference or advantage given
to one person or one class OF persons is
a distinct invasion Of the political rights
OF all other persons. So the clearer and
more correct point of view powerfully
aids the regulative laws, with the general
result that to-day. for the first time In
the history Of American railroads, secret
preferences and advantages have praC-
tically disappeared. Il is because Of this
more elevated and wholesome conception
entertained by the average mind, this
augmented and intense sensitiveness re-
specting matters which were regarded
with indifference. that I believe the stand
ard OF business morality in every sphere
Of activity has been greatly elevated. and
especially so within the last few years"
Mr.. Knapp Endorsed the proposal 70
exempt railroads from the operations of
the Sherman antitrust law, 10 the ex-
tent. at least. Of permitting them 10 make
pooling arrangements, subject to certain
restrictions. The belief prevails in some
quarters that if pooling were permitted,
under governmental supervision. a step
would thus be taken in the direction OF
nullifying the antitrust act as far as
railroads are concerned, thereby remov-
ing an inconsistency in the enforcement
Of the act to regulate commerce, and
the act aimed at combinations in restraint
of trade In his Indianapolis speech, on
Memorial Day President Roosevelt urged
that railroads be permitted to pool, or
rather TO make traffic agreements, under
the supervision of the Interstate Com
merce Commission. The Presidents ut
terances at Indianapolis were approved
by Mr.. Knapp
Effect of Presidents speech.
Their immediate effect he said. was
distinctly reassuring, and as they are
made the subject of further public re-
Election, the correctness Of his view and
the wisdom of his policy will be more
apparent"
In conclusion, the chairman Of the In
terstate Commerce Commission said:
Nothing seems to me more important
at the present time; nothing has so much
TO do with our national prosperity in the
immediate future as to provide with the
least possible delay a very great in
crease in our transportation facilities.
The profitable output Of the farm, the
forest. and the factory is measured by
the ability to move the product promptly
and cheaply from producer to consumer.
THE needs of the country In this re-
gard are growing with astonishing rapid
ity. They have outgrown the carrying
capacity of our railroads. The surpIus
from current operations is entirely made
quate 10 supply our present necessities.
An immense amount Of fresh capital
must be invested in railroad improve
ments In order that our internal COM