The San Francisco call., 1909-10-21
PRIVATE CONTROL
OF ROADS URGED
Interstate Commerce Commits
siOner M. A. Knapp Against
Federal Ownership

BERKELEY, Oct. Cove now rely
upon private enterprise for the distri-
button of our products, and hope and
trust that this condition may always
remain the same. for il is my firm
belief that by the private ownership of
the railroads our roads will reach their
highest excellence and that the public
viii beneht in the largest measure"
This was the statement of Martin A.
Knapp, chairman of the interstate COM
merce commission, in his address be-
tore the students of the University OF
California this afternoon. Commits
sloner Knapp spoke on the work of
The interstate commerce commission.
he said in part:
I believe that IL is the result of the
private ownership OF our railroads that
they have reached the high standard
tney now maintain. A prominent Eng
nsh statesman recently told me that
the English railroads, which are also
owned by private individuals, will soon
be forced TO seek aid of the English
government. He declared that they
are IN great financial need and that
this is due 10 Overca pitanzation. This
is indeed a sad state of affairs. 1
trust that the railroads of this country
may never md themselves in a similar
predicament
It is for this reason that L believe
that. although more miles of railroads
should be built, they should be con-
structed out Of the revenue that the
various roads are now making.
FAVORS LARGE COMPANIES
We should fight the deadly enemy
ot oVercapitalization. The statement OF
Mr.. Hill that LOCO miles of railroad
should be built in this country each
year and for the next 10 years is in
accordance with my own views, but 1
DO not believe in the existence of a
large number Of small companies. and
feel that the American public can be
benefited in the largest measure by a
few large companies that are controlled
under the system that is now being
perfected.
For years the main fight that was
presented to the interstate commission
In its endeavor to regulate the affairs
Of the various roads was the discrim-
lnation made in the cases of large
shippers. The granting of rebates
was one Of the greatest evils that this
body had TO combat. / now feel that
We are almost entirely rid Of this
The number of rebates no& granted
illegally is so small that this phase of
the work need not be considered by
the commission in any great degree. 1t
has been handled so well that there is
now no more danger of the federal con-
trol OF the railroads through discrimina-
rion than there is through embezzle-
ment or any of the other ordinary
crimes Of the day"
The only feasible way to handle
this phase Of the question is TO punish
the violation Of the law of congress in
regard 10 railroad discrimination in
the matter Of rates a s a criminal mis-
oemeaner. This should be dealt with
IN the same manner as that of counter
feiting and the illegal loaning of
money by our national banks, for these
rrr1 ~
the public at large and TO the welfare
OF the nation. 1t is by the pursuance
of this policy that the unlawful grant
ing Of rebates to large corporations has
been eradicated.
AFFECTS LABoRING MAN
The chief problem that the question
Of railroad regulation now presents
Is the fixing Of rates It is in reality
an extremely dificult task to fix lust
rates on the various articles that are
shipped between two places. The
worst feature OF the problem is the
labor question For every dollar that
a railroad takes in about 45 cents is
expended for labor. If the rates on
the various articles are generally low
cred il viii mean a corresponding cut
IN the wages OF the laboring man and
this is emphatically against my princi-
pies. believe that the laborer should
receive every cent that the corpora
tions Of this nation can afford to pay
him. The great problem of the age
and Of all ages is a. fair distribution
Of wealth and property. To approach
this condition il is imperative that the
laborer-the man who is producing
and corstructing5shouId receive all
that he is getting and all that we ca n.
AFFORD 10 give him in the future. If
we keep the rates high it means that
the money comes out Of the pockets
C6fnnprG n NJ oil
Of US are included But we cannot
lower them TO any great degree, for
The railroad must have a fair percent
age of profit, and If its revenue is
cut of in this way, the first step of
the company viii be to make up the
In the wages OF the laborer.
The labor question. L am pleased
to state, presents a more pleasant out
look than for many years past. 1t is
one Of the really great things that
has been recently accomplished The
board of mediation can now be ap-
pealed to in all cases of disputes he
tween capital and labor and / do
not look for much more unpleasantness
between these two great factors of
production.
This is a matter that all students
of economics can we'll afford to look
into and one which must soon be
settled by the United States govern
ment 1t is the business of the federal
government and Aby that tribunal only
can affairs of this nature be definitely
settled I am greatly pleased with
what has been accomplished and I
think that the adjustment Of all of
those matters which are now bothering
the commission is only a matter of
time. We have advanced wonderfully
in the last ten years and yet the work
Is only in its infancy"