The Topeka state journal., 1908-03-05
MIR. CARNEGIE ON REBATES.

An interesting contribution to the
literature of railway regulation is the
article in the Century magazine for
March by Andrew Carnegie, entitled
my Experience With Railway Rates
and Rebates" Mr.. Carnegie's obser-
vations date back to 1856. when he
was secretary and telegraph operator
for Thomas A. Scott, superintendent of
the Pittsburg division of the Pennsyl-
vania railroad. He tells briefly of the
making of rates in early railway days,
showing among other things, how,
when competition was established.
there was a scramble for through
freight traffic, how "gentlemen's
agreements" were formed and their
provisions easily evaded. and mention
ing, incidentally, a lively fight waged
by the manufacturers of Pittsburg
against the Pennsylvania because of
rates which operated against the in
terests of that city. Mr.. Carnegie,
who by that time. had become a large
shipper, played an important part in
the challenge offered the railway
monopoly, and he relates the incidents
Of the struggle-a successful one for
the manufacturers-with much evi-
dent relish. Not little inside railway
history of importance is told, referring
particularly to a proposed extension
of the Vanderbilt interests in Pennsyl-
vania and the bringing of the Gould
system to Pittsburg. There is a trib-
ute to the work of the late Alexander
j. Cassatt. who enforced uniform
rates honestly on the Pennsylvania
system and gradually induced the
other lines to adhere to them.''
Mr.. Carnegie strongly upholds the
policy resulting in the organization of
the interstate commerce commission.
This commission, he says, .tis to be one
of our greatest safeguards" He goes
so far as to say that today the evils
of rebates are unknown, and that the
conditions which once prevailed in
railway transportation are rapidly be-
ing succeeded by a system finally to
become as perfect as Is possible for
man to create and maintain. The
president, Mr.. Carnegie declares, "has
performed a great service. focusing
the attention of the country upon GER
tain crying evils, and the present posi-
ton of the government is all that
could be desired He thinks that we
are only following the example of
older countries sin supervising rail-
roads and other corporations strictly
be an axiom ranking with the equality
ty of the shipper, he asserts. will soon
be an axiom ranking with the quality
of the citizen, and stockholders in
corporations will benefit by the higher
| degree Of security given their invest
ments. Foreign capital. also, will be
| attracted again to America.
Mr. Carnegie is of the opinion that
| 1t should be proclaimed by the admin
| istration and the leading statesmen of
| both parties "that no radical action
has either been taken or contem-
plated. On the contrary, all that is
desired is only what other nations
already possess, and Is in the truest
sense conservative and preservative in
the highest degree" The establish
| ment of the commission, he says final
ly, and the results already achieved,
constitute g. great triumph for our
government system, giving "to all the
| assurance that no emergency can
arise in our country which will not
| be properly and successfully met-an
| intelligent, just and fair-minded people
at the base. cordially approving the
| salutary measures of their representa-
tives. with the president, a great re-
| forming force, at the head, leading the
way
These words are especially to be
commended to such as see in railroad
regulation on the part of the govern
ment only attacks on property. Mr..
| Carnegie has never lost his reputation
for canniness and, evidently, he does
not fear that he is in any danger Of
| risking it now. :.