The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1910-09-20
LATE PRCBLE En- MADE
CLEAR BY kn. RIPLEY
Railway President Points out the
Situation az IL confrsn.s Roads
and Shippers.

Chicago. IIL-The railroad situs
ton In America is comprehensively
set forth by President E P. Ripley
Of the Atchison. Topeka q Santa Fe
railroad company. il letter just
written IN reply TO Senator A B. Cum
MINIS arTaignment OF the railroads in
his letter 10 Mr. Ripley and also in
his Kansas Chautauqua speech.
Mr. Ripley charges the Iowa sena-
tor with having misrspresented
Theodore RooseFeit's views and those
OF the Interstate Commerce Commis-
sion on railroad regulation matters
and accuses Senator Cummins Of
merely guessing" in his arraignment
OF the railroads. The railroad presi-
dent in his long letter makes the fol-
lowing principal points.
1. Accuses Senator Cummins OF
having misrepresented the views of
Roosevelt and the interstate COM
merce commission, and says the Cum
minis amendment for regula.io- O.
traffic agreements and rates By the
commission was not In accord with
the recommendations o. Roosevelt,
the commission and the republican
platform.
2. Says that through the success
full opposition of Cummins and his
friends 20 the Equalization OF trafic
associations the government has
abolished competition and yet makes
1t criminal conspiracy for the rail-
Ways 10 fail to keep up a show OF
competing.
Calls Statement E.fs.
). Says the Cummins argument for
/ allowing the railroads to earn diTi-
/ bends only on independent invest
ment Vas repudiated twelve years
4 ago By the supreme court OF the
United States
4 Says the Cummins letter II
August IL confirms the impression
that the senator was merely guess
ing in the statement that the total
independent investment in the rail-
Ways did not exceed $4,000. e0o, 900.
5 Says Cummins' statement tha;
the amount of independent capital
I paid 10 issuing companies for stock
4 is q negligible quantity and is far ex-
ceeded by the amount of bonds that
have been issued without considsra-
ton is an entire Misrepresentation. .
g. Characterizes "absurdly low"
/ the Cummins estimate of $4,000 q
1 mile for independent investment"
4 Says stockholders have a. right
to earnings on dividends which have
I been invested IN the property.
8. Accuses Cummins of being prac.
! ticaiiy single taxsr in contending
that the increase in value of railroad
property due 10 'unearned increment"
should not be allowed to earn divi.
dend profits, and says this doctrine
has no justification in law.
3. Says Cummins' plan Of restrict
Ing dividends would stop railroad de-
velopment in the United States by re-
stricting capital invested TO reason
able" dividends but not guaranteeing
dividends.
10. Says the constant irritation
and increasing turmoil" over rela.
tions OF the railroads to the public
is due not to railroad men SO much as
20 agitauons by men In public life
j VINO know little about the subject.
Administration Bill.
AS the administration bill gave
the commission discretionary power
70 prevent any advance In rates,
whether made by one or a number OF
roads, it probably appeared to those
who drafted it entirely unnecessary,
inconsistent and work of superroga.
ton TO make the going into effect OF
| agreements and rates made In pur.
suance OF them absolutely independ.
ent upon the approval of the com.
mission, as you insisted should be
done.
How, now, does the case stand a.
result of the successful operation
OF you and your friends 10 the pro.
vision OF the administration bill for
the iegalizing of traffic associations?
You say in your letter to me When
the government steps in to fix rates
1t practically destroys competition