The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1916-05-14
STORY Of RAILROAD
DONNA TON TOLD
BY PRES. SMITH
By gibson GARDNER.

Washington, May 13.-The story of
railroad domination, consolidation,
upbuilding and the part taken by
railroads in politics as the invisible
government of four states has been
laid before the Interstate Commerce
Commission in the testimony of one
of the veterans of this line of finan-
cial and political activity-a man
who for fifty years has been at the
head of the Louisville & Nashville
railroad, its President, Milton H.
Smith, aged 80.
1t was this President Smith who
made that famous comment as to
what is a reasonable rate and what
the public could do if it didn't like the
rate. In December, 1897, Commits
sioner Prouty asked Mr.. Smith: eff
you make the rate unreasonably high,
what remedy has member of the
public who desires to travel from
one point to another?" Mr.. Smith
answered: "He can walk"
"Can't he hire a horse and ride ?"
asked the commissioner. 'fYes," said
Mr.. Smith, che can hire a horse if
he doesn't want to walk"
In explaining this statement Mr..
| Smith told the commissioner during
this present hearing that these re-
marks were entirely informal" and
added: although / had been placed
under oath, and, so far as I was
concerned, was perfectly frank and
free, such remarks as I made were
not intended for publication and they
were unfairly and without my knowl-
edge made part or the public rec
ora. I requested the privi-
lege of being allowed to correct the
transcript of my testimony, but the
corrected copy was not used in the
public record"
In the present inquiry the COM
mission has been trying to have Pres
ident Smith tell about moneys spent
for political purposes. President
| Smith has refused, ''by advice of con-
sell" to answer these questions and
the commission has applied to the
supreme court of the District of Co
lumbia, and the case will go finally
to the supreme court of the United
States, for a ruling as to whether
this information shall be given.
On some subjects President Smith
was frank and talkative. He admit
ted to the commission that his rail
road system had loaned $498, 900 to
the state of Alabama, because the
state was without funds and, in the
absence of help from the railroad
would have had to call session OF
the legislature to raise the money to
meet its warrants.
eve did not lend the money direct.
| ly to the state" said the witness. eve
loaned $4,000 in 1912 and about
the same amount in 1913 to the First
National Bank of Birmingham. 1t:
president, w. P. G. Harding, now {
member of the Federal Reserve
Board, came to the Louisville & ~ sh
vile and asked it to join with othel
nterests-railroads and banks, l sup
pose-in buying up state warrants
there being no money IN the stat,
treasury to pay them at the time"
President Smith justified his cours
as follows: "Why shouldn't the Louis
vile & Nashville help the state o
Alabama? We have millions investe,
in the state and we are more inter
ested in its prosperity than anybod,
else except perhaps the people them
selves. Isn't it fit, proper and nat
! ural that we should try to aid it t
be prosperous 2"
at is an exceedingly difficult mat
! ter" Mr.. Smith continued, ''to protec
the property of large corporatio
in states from confiscation by tn
: people"
by what people," asked Mr.. Foil
counsellor for the commission.
"By the people of those states,
. replied Mr.. Smith, "acting throug
4 their law-making bodies. You kno,
all men are free and equal, but W
could not get along without our pluto
Gratis. Under our form of govern
ment it is permissible to do anythin
necessary to get another mans proI
erty, provided you can keep out {
\ Jail. All legislative bodies are
menace; in action, they are. a calan
ity. They are many and numerou
and we have trouble at times wit
all of them, beginning with congress
and going down the line to the tow
: council. We must do what we can I
conciliate them all. We have to pre-
tect ourselves"
The inquiry has disclosed the fat
| that Mr.. Smiths road iSs,,ad Tasse