Albuquerque citizen. [volume] (Albuquerque, N.M.) 1907-1909, 1909-01-11
ROADS DID NOT LOSE
ENOUGH TO CAUSE
RATE INCRERSE
Interstate Commerce Commits.
sion Submits Annual
Report to Congress
Today.
COURT DECISION
WAS SEVERE BLOW
Hdrrimdn'S Victory Upsets Plans
of the Government Board for
Regulation OF Roads,
Progress Made in
the Year.

"N7hih6tOiig Jan. lI.-lne inter-
state commerce commission today
transmitted to Congress it's report for
the year 1905. The report states that
the temporary financial depression
from which the country is now emerg-
ing resulted in the diminution of rail-
way revenues considerably below the
nigh point reached in 1907. the ban
ner year In American railroad history
IN respect of gross and net earnings,
as well as volume of traffic, and that
in several instances the necessity for
placing railroad properties in the
hands of receivers was wholly or par
TALLY due to the serious and unexpect-
ed decrease in earnings.
In view, however, of the widely cir
culated reports that the loss inflicted
upon the railroads was so severe as TO
warrant universal advances In rates oil.
reduction III wages, or both. IL Is i'm
teresting to note that the gross earn
ings of all railroads for 1908, al
though $164, ,464,941 less than the
gross earnings for 1907, were $9S,S75,-
470 in excess of the gross earnings for
1906 and $S42,15S,231 in excess of
those for 1905, and that the net earn
ings for 1908, although $111,O51O0
less than for 1907 and $50, ,349,13s less
than for 1905 were $37,65S,504 in ex-
cess of those for 1905, These figures
indicate that whatever may have been
the fact in individual cases, the rail-
roads of the country, as a whole, did
not suffer so severely in comparison
with years of normal traffic and bust
ness conditions as may have generally
been supposed The recent change in
accounting methods may affect to
some extent the accuracy of these
comparisons, but it is believed that
the variations due to that cause did
not materially alter the general re-
suit. 1t is pointed out that a con-
tinuing business depression could not
be held to justify the maintenance of
particular rates which are unreason-
able in themselves or unduly d.scrim-
inatory, since the right to equal treat
ment at reasonable rates does not de-
pend upon the financial condition of
the carrier
The Hartman Decision.
In r. III. Hartman versus Interstate
| Commerce commission. decided Dec.
H. 1908, the supreme court of the
| United States held, reversing the de-
cision of the circuit court, that the
appellant could not be required 10
answer certain questions propounded
to him by the commIe Iesion. This de-
cision has a somewhat important bear
| ing upon the work of this body which
Congress should understand.
The commission had instituted up
on its own motion an inquiry into
railroad consultations and com bina-
tons, which had been prosecuted with
! special reference 10 the operations of
Mr.. Hartman in connection with the
| Union Pacific, the Southern Pacific,
and allied interests. In the course of
| this investigation it came out that the
| Union Pacific, in which Mr.. Hartman
was the dominant factor had pur-
chased Of the Chicago & Alton and
| Illinois Central certain very large
/ blocks OF stock, and he was asked
whether he had personal interest in
the stocks OF these companies pur-
chased by the Union Pacific. 1t ap-
! peared what the price paid by the
! Union Pacific was, and Mr.. Hartman
was also asked in one instance 10
state, In case he owned any of the
stock thus purchased by the Union
Pacific, what price he had himself
paid for the same These questions
hc declined 10 answer ind in this re-
fusal he is now sustained by the court
This commission in administering
this power OF investigation. which it
has assumed to exercise in the past
has repeatedly held that the private
dealings of individuals in private mat
ters could not be inquired into. 1t
has, however, ruled that II might in
quire to the fullest extent into the op-
erations Of railroads and the officers
or railroads. The Union Pacific rail-
road is not a private enterprise-it is
public servant, dischsrglng, as tho
agent of the government. a public
function. It's stocks are worthless ex-
cept as they derive value from the
charges which are imposed upon the
public for the rendering OF this public
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