The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-02-27
RAIL PROBLEMS
TOLD ROT AR Y
BY W00DW0RTH
Speaks Frankly Upon Issues
Involved n Rate Making
in North Dakota
BRIGHTER TIMES AHEAD
Many Changes in Attitude
Toward Carriers in Last
Few Years Pointed Out

North Dakota is more nearly ready
| to stage a business come back than
| any section on the Northern Pacific
system, j. q. Wooiworth. vice pres
ldent of the Northern Pacific, told
| the Bismarck Rotarians at their rer-
| ular weekly luncheon at the Mcken-
zie hotel
You had little initiation here" he
said, land the process of deflation
has practically been completed. In
fact you are in fine shape to enjoy
what appears to be better times
ahead. We can see the light break
ing through the clouds. l learn from
the immigration Department that
they have considerable inquiries
about North Dakota which should
mean in time more active move
ment of settlers to this state"
Mr.. Woodwork spoke frankly up.
on the matters of rate making ex-
planning how under governmental
supervision rate making had been
reduced to mathematical basis and
how the railroads had had this mat
ter largely taken out of their hands.
He contrasted early day systems of
rate making to what obtains now,
clearly showing that the railroads
before the days of government con-
troll of rates had been able to do
much in putting into effect rates
that would allow new industries to
reach out and expand their markets.
He said both the press and the
public were gradually seeing some
of the railroad problems in their true
significance. He declared that the
railroads must get an adequate re-
turn for their service or else let
Uncle Sam run them.
Early Connection
Mr.. WOodworth referred to his
connection with the early settlement
of the territory He was Agent at
De Smet, ID. T. from 1880 to 1884.
He described similar experiences in
Oregon and Washington and con-
trasted railroad conditions and meth
DDS of that period with those of to-
day. 1t was the period of extensive
railroad building in the West. The |
hope of large profits made it easy to !
get money for such purposes. There !
was no law providing that any re-
turn in excess of six percent would |
wholly or partially revert to the Gov
ernment and rates were not fixed by |
railroad commissions. The railroads
had no difficulty in getting good |
men in all classes of employment !!
because every man had chance and
hoped to be a superintendent, general
manager or president. When Mr..
Woodworth went to work as office
boy in the general freight office of
the Northwestern Railroad in Chi
cago there were four other appli-
cants for the job which paid $500
per month. They were the sons of
business men who sought the place
for their boys as they now seek to
connect them with banks, trust COM
panies and large business corpor-
ations. In the railroad business the
office boy is extinct. They are now
called Junior Clerks and get the
minimum wage under the clerks
schedule, $4,000 per month nor can
they be promoted out of their turn
under the seniority rules adopted in
jne period of Government control.
Difference in Policy
Mr.. Woodwotth also showed the
difference in the policy and meth
I'd Of making railroad rates in the
,wo periods and suggested the ques-
ion as to whether it would be possi-
dc under present conditions to in
luce people to invest and lose their
money in the Building of railroads
IS they did in, past years and whe-
her railroads newly built in an un-
developed country could under the
present conditions be administered ,
n way which would promote the
'rowth of the country and make I
hem successful. He did not sug- I
est that it would be possible to q
realty change. present. conditions but ,
le did say that continuation of
ailroad operations under the pres 4
mt plan would depend upon better :,
understanding of all these things by | i
he people who make and administer
he laws and this would be impossi-
lie without better understanding
n the part Of the individual citizens
nd voters, the alternative being COM
lete Government control and oper-
tion.
Tendency of Regulation
AS showing how the tendency of
ate regulation is always in the di-
ection of uniform rates on some 4
basis he described the S
istOry of cement rates and referred t
lso to the present difficulties in I
with coal rates, suggest t
lg that the never-ending dispute o
etween the coal producers and deal v
RS would make it necessary to final t
T have a distance measure of rates "
n coal just as we now have distance
ates on cement, thus stopping the a
omplaints by putting all shippers on a
le same basis. He ridiculed the sug- e
estion that the farmers of North II
akota are very much interested in ~
,e Ignite coal rates and stated that t,
percent of the North Dakota lig- tt
ite hauled by the Northern Pacific II
d not 60 out of the state and that IL
CONTINUED on page 81 j,