Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-08-19
IOWA SENATOR BACKS UP HIS
ESTIMATE OF RAILROAD
STOCK VALUATION.
REFERS TO TRlckERY
IN MAKING RAIL BILL
Railroads Are concealins, Senator
cunmins Says, tho Real Amount Of
Money Going Into tho Properties -
Reasonableness Of Earnings Ex-
plainsd-Gist Of cummins' Letter.
Special to rimes-Republican

Special to Times Republican
Des Moines, Aug. 1s-Senator Albert
B. Cummins today mailed to e. u.
Ripley. president Of the Santa Fe rail-
road, reply to the latters letter re-
Gently published, attacking Curnmins
for some things said by the senator in
speech in Peabody. Kansas, anent the
recent railroad legislation; and in his
rer!y the Iowa senator put the railroad
president into the hole for misrepre-
sentation and obscuring the facts in re-
gard to legislation, railroad capitaliza-
tion and other matters.
Senator CumSnins after making some
corrections in regard to just what he
did say and declaring, that as for
Wickersham and Aldrich. he has no
feeling against the men and attacks
only their conduct of public aafflrs,
quotes what Ripley said as to the rail-
way bill:
Quotes Ripley and Replies.
There was in the bill only one thing
that could by any possibility be consid-
cred favorable to the railways. namely.
the right to make legal agreements as
to rates-a proposition recommended by
Roosevelt, by the interstate commerce
commission. and inserted, / believe. in
your party platform; a right also which
all unprejudiced students Of railway
economics realize as being a necessity.
This-tho only desirable feature Of the
administration bill-was eliminated by
you and your friends
Senator Cumm1nS said in regard to
49,,
vision upon this subject in the ad-
ministration bill was eliminated thru
the arguments and influence of those
ignate as you and your friends. but
this Is the only truth in the extract ]
have Just quoted from your letter.
ut is not true that this was the only
thing in the bill that could be con-
strued as favorable to the railroads.
'1t is not true that the proposition
contained in the bill was ever recon-
mended either by Roosevelt or the in
terstate commerce commission.
at is not true that it was in our
party platform.
'I. is not true that all unprejudiced
students of railway economics regard
the proposition originally found in the
bill as a necessity.
ROOSEVELT as Authority.
Roosevelt and the interstate COM
merce commission said in a variety Of
forms that they believed that railway
companies should be permitted to enter
into traffic agreements respecting rates,
but they always made it absolutely
clear that neither the agreements nor
the rates made under them should be-
come effective until approved by the
commission. Our platform so declares.
The bill, as introduced in the senate.
permitted railway companies to make
traffic agreements specifying rates and
charges, and authorized both agree
ments and rates to become eeffctive
without the approval OF the commits
sion. If you know what happened in
the senate, you know that offered an
amendment to the section providing
that neither the agreements nor the
rates proposed under them should be-
come effective until approved by the
commission. This amendment was in
exact accord with the recommends
tions of Roosevelt, the commission and
our platform; but it at once encoun-
tered the opposition of the administra-
ton, of every reactionary in the SEN
ate. and Of the railway companies.
Refers to AIdrich's Trickery.
you know, further, II you are as
well informed as think you are, that
the fight which followed was one Of the
most striking controversies Of the en-
tire debate. Mr.. Aldrich and his fol-
lowers, acting assume in accord with
the administration, preferred to strike
put the entire section rather than to
allow my amendment to prevail. I pre-
lerred to see the section stricken out
rather than to permit traffic agree
ments specifying rates and charges to
20 into effect without the supervision
ana approval Of the commission. I
look upon the section as originally
drawn as mere trick. Happily it was
20 manifest that 1t was not difficult to
expose It.
'If you are in favor Of the views held
nv Roosevelt, and the commission and
adopted by our platform, you owe it to
the public to frankly say so, and thus
lay the foundation for better regula-
ton in the future"
Takes Up Roads capitalization.
Senator Cummins takes up. also, a
question as to the capitalization of
railroads. He had said, and this was
are capitalized at $17,000,000,000. Rip
ley contending that Cummins ought to
have deducted the duplicated capitali-
zation held by the railway companies
themselves. The senator denies that
the computation of three and a half bill
lions of duplication is accurate: but
points out that what Ripley really OBJ
1ects to is the principle that the capt.
talization Of corporations, should be
actual, Independent investment. Con-
tinufng he says:
II agree with you that the actual in.
vestment, exclusive Of earnings, has
never been accurately ascertained, for
the very simple reason that the books
0Csntinued On Second Page.)