New-York tribune., 1911-01-02
PLEADS FOR HIGHER RATES
Arthur E. Stillwell Reviews Railway
Conditions in 1910.
To the Editor of The Tribune.

Sir: All great armies 60 into battle LED
by the martial music Of band. II is one
of the important institutions OF all armies.
The railroad is the brass band OF prog
ress. Ii leads the way; after 1t follow the
settler, the merchant, the banker. There
can be no progress, no success. for new
or an old country. without the railroad.
There can be no railroads without conf
dence in the bonds and shares they issue;
without this confidence they cannot be sold.
The year 1910 started out with great prom
ise. All business was good, the crops
turned out to be the largest and best OF
any year. Notwithstanding the fact that
large section OF the United States had
poor harvest, the total was the best we
ever had.
Then came the demands by trainmen and
all employees for increased wages. They
were granted, as the officials Of the rail-
roads wished to avert q strike. Railroads
to offset this raised rates, and then came
the Legislation against this increase. The
wheels OF progress began to slow down;
great sales of bonds in European markets
that we're being negotiated were cancelled
and We lost hundreds of millions Of dollars
I
change for our railroad securities.
This money would have blessed all trades;
all manufactures would have felt the i'm
pulse that this money would have given.
Clearings are from 10 TO 20 per cent each
week less than they were last year, and
there IS no doubt that this loss to busi-
ness each week is equal TO all the increased
rates asked for by the railroads for the
year. In other words. the loss to trade and
business is over fifty times the loss TO the
railroad, through not being allowed the
increased rates
The government can, II It wishes, and
II II IS the wish Of the people OF the
United States, force the railroads 10 face
unfair conditions. But tho government has
no power at the same time to force good
times on the people Of the United States
II has no power after 1t has treated with
Injustice s16.000000,O)O OF invested capital
to prevent the workingman in time being
forced 10 soup kitchens and the bread line.
If railroad capital must be thwarted in
receiving ample earnings-and that is the
style now-and II the government wishes
thoroughly TO destroy confidence, why not
reduce the earnings OF banks, which now
average q payment Of more than 10 per
cent q year on capital and surplus?
Banking capital is as much needed for
business as railroad capital. but If vested
capital must be attacked. banking capital
is a good field left untouched.
Free silver was only the proposed reduc-
ton of values. and II was followed by the
greatest slump the country ever witnessed,
which produced stagnation in every line.
No proposed injustice by the government
ever has, or ever can, result in any condi-
ton but stagnation and suffering.
The Interstate Commerce Commission
ought 10 be composed Of men who are eX-
perts I'm railroad work-men who have lived
on the firing line. who have produced
created. built railroads. Then confidence
would be established.
President Taft will not appoint veterinary
surgeons or chiropodists to fill vacancies on
the supreme Court bench; yet we see APP
rointed 10 tho Interstate Commerce Com
mission men who are not railroad men, and
s;fu we expect satisfactory results. (This
is not personal. 1t is only the plan that Is
incorrect)
Freight is to-day carried at less rate
per mile than It was few years ago. while
all ether costs have advanced. There is no
Justice in it, and the sooner that We as a
nation, recover from the idea that II Is fair
the better 1t will be for our nation.
If the railroads are the advance guard OF
prosperity, as they are. We are all inter-
es.ed in seeing that they have ample rates
so that their growth and development can
keen I'D with the growth Of the United
states. II the United States grows In popu-
Iation 1000. 900 a year. it takes over 5000
miles of new track 10 keep up with the
growth. and II will take from s26O0Oo,Ooo
N $500. O0O. 900 to supply this, and 1t can
on,v he found II confidence in railroad in
,,nstuent Is re-established by ample rates,
and IN no other way.
ARTHUR z. sTILLWELL
New York, January 2, 1911.