Connecticut western news., 1910-09-29
ess. and certainly the railroad business,

uess, and certainly the railroad business, is better off. the better the character of the government. I should be more com fortable, if could dream with others @ bout what is going to be accomplished by renewed efforts to put none but hon. est, independent and capable men in public office. But whether in politics or business. no type of man is more dan gerous that the impractical dreamer.
 Ut is an old saying that the best pos sible government would be despotism, if we could only be sure of always hay. ing the ideal despot. Those who are in a hurry to see accomplished some soclal reform, are apt to call for the creation of despotic authority for the purpose, and to calmly assume that the proposed despot when created will prove to be the ideal despot. But all human exper- fence demonstrates that we cannot req sonably expect to get the despot of our dreams, and that arbitrary political authority cannot safely be granted to any man or to any commission. Until human nature changes, the great con- stitutional principles for which our fa- thers struggled will remain the necessary bulwarks of oivil liberty. The faithful separation of the legislative, executive and judicial departments of the govern ment will, believe, need hereafter as. hitherto, to be demanded by sober minded and thoughtful citizens.
 Increased Mileage Charge.
 "You ask me specifically why the printed mileage of the railroad was in- creased by two miles few months ago. The answer is that this was blundsr which was immediately corrected. The orders which resulted in this misunder standing on the part of those having charge of printing timetables related to an increased charge of four cents on mileage books in connection with gen eral increased charge of five cents in in- terstate commerce to and from New York City, necessitated by many causes, but especially by the great increase in the amounts paid by this Company to the New York Central and Hudson River Railroad Company for the right to send our passengers for their convenience in and out of Grand Central Station.
 . Capitalization.
 "The most important of the specific questions which you put to me is, in substance. whether the capitalization of street railway company is of any inn portance to the public. My answer is, Yes, but not in the way many people seem to suppose. The mere amount of company's $ capital bears no relation to the actual or possible gross or net earn 1 tgs of the company, or to the ratss charged or tho service afforded.
 No street railway manager earns fl om his business more or less because of differences in the amount of his com paly's capital If he is worth his salt. he always earns (whatever be the amount of his company's capital stock) all that he can but the best way for him to do this is to give to the public the best pos sible volume of fremunerative business
 "A careful comparison seems to show that under similar conditions public ser, vice corporations of Connecticut in gen. eral give at least as good service at rates as low as do like corporations of Massa- chusetts, whose capital has been string ently restricted. l may say, moreover, from an experienced in good many States fhak ha sNx oF necticut with all it's faults is on the whole at least as good with rates at least as low, as in any of such other States.
 "But the subject of the regulation of the capitalization of corporations is too large to be adequately treated at the end of long letter. I therefore ask leave to discuss this and other questions more fully later.
 The Progressive Movement.
 "In concluding this letter, wish to repeat my warning that if wrong princi- ples are followed in the regulation of railroad, lighting, telephone and water business, other industries are likely to be soon injuriously affected by the ap- plication of similar principles. Under modern economic. conditions, competi. tion ceases to be an effective or even wholesome regulation of prices or ser vice. Many great industries are or are inevitably coming to be controlled by more or less complete monopolies Ger many has already begun the policy of regulation of industries by fixing price