The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-04-12

| under either dennluOn.
| This country began its transporta-
! ton career under a competitive SyS-
tenn. The enormous natural resources
of the country were ValuelesS without
| transportation facilities. Private cap
| itaI was much needed, with which to
| build railroads. The people gave very
/ little thought as to the terms on which
this capital was secured, so that it
came quickly. They were quite will
| ing to grant franchises, unrestricted
as to rates for service, and to donate
some portion of their land in order
that the remainder might be made of
value. They were willing to bond the
community because the interest on
such bonds was a small matter COM
pared with the increase in the value of
! the land, and the increase in their
earning power, by reason of these
transportation facilities.
Competition was depended upon to
regulate the charges for transporta-
ton. and so far did we carry this idea
of competition that, having bonded
ourselves to secure a railroad, we pro-
ceeded to bond ourselves to secure
other railroads to come in and cut the
life out of the first one. Under this
fierce competition, we built up the
greatest transportation system. with
the lowest freight rates, anywhere in
the world; a transportation system
that furnishes employment to more
than one and one-half million people,
at the highest rates of wages in the
world. but, as is always the case with
unrestricted competition, it bred many
DETERMINATIONS be-
tween individuals and between COM
munities.
1.-The sale of transportation was. I'M
der this system. handled much the
same as the sale of any other COM
modify. l. e., on the wholesale and re-
tail plan The shipper who purchased
able to practically name his own price.
Some of them were not very modest
in their demands.
Regulation and Discrimination.
After about forty years it dawned
upon the American people that, in ord
err TO do away with these discrimina-
lions. some form of regulation was
necessary. 1t apparently did not oc-
cur to us that effective regulation of
rates and effective competition in rates
could not travel together. The aboli-
ton of the secret rate meant the abo-
Hilton of rate cutting. There can be
no competition in rates when you are
required to give your competitor thir-
ty days notice of your intention to cut
the rates.
I'm it's first effort at rate regula-
ton. congress apparently had no in
tention of going farther than to pre-
vent determinations between COM
munities and individuals. The meas
ure was altogether a very weak effort,
but even in this law it was thought
that congress had exceeded its right
under the constitution; that the mere
right to regulate commerce among the
states did not give it the right to
prescribe rates for service, and the
gentlemen on both sides of the contro-
versy. who were well versed in the
lawlessness of the law took many
years in which to settle this question,
and some of them are not yet con-
WINGED.
"I believe most railroad men now
think that it would have been better
for the railroads If the federal gov
eminent had claimed the right to reg
ulate all freight rates and that the
railroads had conceded this from the
Istart but corporations and govern
ments. as well as individuals. must
learn by experience We are not usual
ly willing to accept as conclusive the
experience of others.
Amendments have been made to the
law until it would seem that we now
have in the commission a regulating
body that ought to be effective, but
there seems to be still a very weak
point. and that is, that the only method
provided for leveling rates between
communities is to level them down, re-
CARELESS of whether the rates are of
themselves too high. in other words,
the physician is limited to bleeding as
a remedy.
No More Rebates.
I'VE have now provided machinery
for abolishing determinations, rebates.
etc. but we are now confronted with
a new theory, viz, that even if rates
are uniform and fair within themselves,
they ought to be reduced so that the
income of the roads shall be only suf-
ficient to pay a fixed return on the
physical value of the property, in other
words, that railroad stocks shall be Ia
ken out of the field of speculation. This.
I think would mean that investors
would demand bonds instead of stock.
If the return is to be limited, they will
insist upon some security, and we will
be dependent entirely upon borrowed
money for our improvements with the
result that our fixed charges will in
crease very fast, and finally there will
come a time when we cannot meet
them.
II do not object to the physical valua-
ton of railroads. L know that in the
aggregate, the rates would have to be
| increased to pay a fair return, but /
doubt the wisdom of limiting the earn
ings of the roads in this way. 1 think
if it is done we will soon awake to the
fact that having already eliminated
competition in rates, we would by this
method also eliminate competition in
| service.
There is now no difference of opinion
as to the necessity for regulation; there
! is still a serious question as to the ex-
| tent to which we can go with profit to
| the country, and as to the best method
of doing it.
Admitting that the patient needs
| treatment, shall we employ Al doctors
to prescribe for the 46 different sections
! of the system, or shall we have one
physician, or one set of physicians, for
| the whole system? If we employ the AZ
| doctors, and bleeding is to be the only
| TeO1adU rOarY1oiffpd who will SET the
limit to which this treatment may go?
| Believes in the People.
Il have an abiding faith in the ulti-
! mate fairness of the American people
and 1 know that the matter will be set
tied right, but 1 think it is due the pec-
pie that railroad men and business men
do little thinking about these matters
has been taken.
j ..rrhars is c,l1estin1, in mind hui