Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-09-22
CONFERENCE ON
FREIGHT RATES
Gov. Stubbs Declares Railroads
Have Combined TO Advance
Them as Never Before.
QUESTION OF VALUATION
Has Been Opened by Roads and People
Now Demand "A Bona
Fidc one.

Topeka Kas Sept. 2?.-Gov " r.
Stubs Of Kansas outlined the pur-
poses of the Interstate rate confer
encc I'm a rather sensational speech at
the opening ot the session here today.
The governor declared that the rail-
roads of the country have combined
to advance freight rates on a scale
never before known. He said that the
railroads Of their own initiative had
opened up the whole question Of as
cortaining the valuation Of railroads b.
the testimony Of railroad officials be-
fore the Interstate commerce commits
sion. He asserted that the public de-
manded nothing short Of bona hde Valu-
alton of all railroad property and said
Congress should Immediately pass
law giving the interstate commerce
commission authority to ascertain this
valuation.
Gov. Stubbs also deplored the tend
ency OF railroads TO favor large cities
in the adjustment of rates
PURPOSE OF CONFER ENCE.
In outlining the purposes Of the con-
ference, Gov. Stubs said:
This conference was called to dis
c1lss ways and means TO protect the
interests OF the producer, consumer,
shipper and the public generally In the
middle west from the advance in
freight rates involved In the most i'm
portant case that has ever been heard
By the interstate commerce commits
sion. The principal railroad systems
OF the United States have combined
for the purpose OF advancing freight
rates on a scale never before known IN
the history of this country. In the case
now pending the interstate commerce
commission are not considering the
| question OF the inherent rcasonableness
OF any specific rates. but are passing on
| the general proposition as TO whether
| the railroads OF the country are en-
titled under present conditions 20 a
general advance In rates. II they
! should so decide and approve the rates
| now held in suspension then their de-
| cision will serve as precedent not
| only 10 prevent any reduction IN rates
| in the future but to be used as basis
| for fnture advances OF thousands OF
| other rates
'The railroads on their own initia-
/ tive have opened up the whole ques-
| ton or ascertaininE the value of all
| the railroads IN the United states.
| Railroad presidents, trahic managers
| and other high officials are giving vol
| luminous testimony tending to prove
| what they claim 20 be the value OF
| their property In order to establish
basis for greater earnings 10 which
| they contend they are entitled under
| the law.
BONA FTDE VALUATION.
"The public demands nothing short
| Of a bona fide valuation of all rail-
! road property and public officials, VINO
| represent the consumer. producer
shipper and general public. will be
| criminally negligent II they do not
| avail themselves OF this opportunity TO
| go To bedrock and assist the Interstate
| commerce commission 20 make
searching and exhaustive investiga-
| ton. SO as To determine the actual
| value OF all the railroads Of the United
states.
"Tf. upon investigation II Il found
| that the railroads are justly entitled
! to an advance In freight rates no good
citizen win oppose paying such IN
| crea sed charges as may be necessary,
| but. on the other hand n the railroads
are now earning from 10 to 30 per cent
| dividends on their capital stock, then
| IL Is clearly the duty OF public OFFICIALS
TO demand such reduction In freieht
| rates as may be Just and reasonable
| under the law. In this connection per-
| init me to state that the supreme court
| has expressly held In the New York
| ca Ses that per cent was a reasonable
| and lawful return on the value OF IT'S
| property.
congress should at once enact law
| providing for the physical valuation or
| railroads BY the interstate commerce
| commit ssion and this should be done be-
| fore any general advance IN railroad
| rates Is permitted. There Is no m re
rea son why badly managed. badly con-
| structed, poorly rated and over capt.
| talized railroads should prosper than
| whv a badly managed business OF any
| kind should be successful and neither
the people nor the government have
any more responsibility To this class Of
| railroads than they have 10 ill-adViSed
business operations Of any kind
RAILROAD POLICIES.
"The general policies Of railroads
| throughout the United States 20 favor
| large centers and build up great cities
| al the expense OF the rural commute
| ties. Is little less than a crime against
| civilization.
such policy rohs hundreds of thou
sands OF children OF their natural right
| To wholesome surroundings. sunshine,
pure air, and healthy social conditions.
| II also encourages abnormal develop
| mcnt in great cities where crime and
shame find convenient shelter. The
| true policy should he 10 Sin regulate
| TRANSFORMATION rates that the rural dis
| tricts viii be developed and the nopula-
| lion normally distributed Tho govern
| nent and not the railroads should de-
ternnine absolutely policies Of this char
acter"