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About The commoner. (Lincoln, Neb.) 1901-1923 | View Entire Issue (Oct. 6, 1905)
"P""9"P & V. ' OCTOBER 6, 1905 The Commoner. 3 FORAKER'S THEORY VS. STICKNEY'S PRACTICE Senator Foraker declares with all the deliber ation and earnestness of manner for vvhlch ho is famous, that he believes it impossible for con gress to provide a way for making freight rates which would be better than the method now in vogue. Senator Foraker tells us that "the railroads employ for rate making the brightest and most skillful men they can find," that their work "is of a scientific character," that it "can not be done except by experts," that "they must, of necessity, meet as nearly as possible the requirements of their patrons," that they must, therefore, "not only make rates as low as justice to the rail roads will allow," but "they must make them in terdependent, so that shippers can with facility send their products throughout the entiro country." There you have the opinion of an expert who never made a railroad rate, on the subject of making railroad rates. What practical rail road man and rate maker would have the hardi hood to step forward and contradict the ukase of the senatorial expert from Ohio? President A. B. Stickney of the Chicago Great Western Railway, has, it is true, had the hardihood to offer something in contradiction of the senatorial rate maker, but as Mr. Sticknoy's whole life has been devoted to building and man aging railroads, of course his work will count for nothing on the rate making question ns com pared with that of tho senator from Ohio. While Senator Foraker is telling us that tho railroads are employing for rate making "the brightest and most skillful men they can find," Mr. Stickney, tho mere railroad builder and manager, is tolling us that "it is unfortunate that the men who make the tariffs of rates are not mathematicians in stead of fairly good guessers." While Senator Foraker is telling us that "their work is of a scientific character and can not bo done except by experts," Mr. Stickney, who has had nothing but practical experience in railroading, tells us that these "scientific exports" merely "guess that if one rate is so much, another rate in order to be relative, must bo so much." Senator Foraker tells us that in his export opinion "a better way may be found of making these rates than that which is now in vogue, but I do not believe it possible for congress to provide It by intrusting such a complicated, delicate and vitally import ant duty to any such agency of its creation as that which has been proposed." Then Mr. Stick ney, who has only spent a busy lifetime In study ing rates and building and managing railroads, and has never had tho practical oxporlenco that comos only to sonutorM of tho Unltod Stnto, says: I dcslro to go on record as saying that In my opinion It Ik ontlroly posHlblo to con- ' struct a tariff mathematically. It could bo dono easily by adding to the terminal ox--poiiKos and tho special bunions of onch class of shipments practically constant quanlltlos for tho cost of hauling, which would bo sym metrical, equitable and satisfactory both to tho peoplo and to tho railroads. Furthermore a Bchedulo made In this way could bo print ed In a form so easily understood that any man of ordinary ability, by Inspection of tho schedules, could toll for hlmsolf tho legal rate upon any shipment ho might desire to make. To the ordinary man tho prosont tariffs and schedules are about as plain as Greek or" Choctaw. John Howard Payne, tho homeless, wrote tho Immortal song, "Homo, Sweet Home." Spinsters have written our host essays on "How to Raise Children." And Senator Foraker, who nover made a railroad rato, stops to tho front and tells us all about tho difficulty attendant upon that work. It was extremely Insolent of Mr. Stickney to Interrupt. THE PEOPLE KINDLY "ALLOWED" TO CONTROL Grover Cleveland, chairman, of the trustees of the Ryan stock in the Equitable, has written a letter in which he says that he is in favor "of such mutualization as will be real and genu ine and at the same time will compel in the direc tion and management of life insurance compa nies such business ability, such attention and de votion to duty, and such honesty and alertness in discharging fiduciary obligations as well as promoting legitimate self-interest as are posi tively vital to the beneficence of such organiza tions." But Mr. Cleveland says that he is "not blind to the fact that obstacles lie in the path of the proposed mutualization which are so inherent that even with the greatest study and care they can not be easily overcome." He adds: Mutualization and policy-holding control are pleasant to the ear, b'ut in and of them selves they do not successfully import good administration or successful management. If policyholders are to be allowed control thoy should in some way be made to realize their responsibilities as well as their privileges. . There are obstacles in every enterprise where a considerable number of people holding inter ests are to be consulted, but mutualization as ap plied to these insurance companies means that the policyholders will have a potent voice in tho affairs of tho company. If they have that voice and exercise it unwisely, they have it in their power to correct whatever errors they may have made. If they fail to exercise ,tho power and become indifferent to their duties as pplicyhold ers, then no ono but themselves will bo to blame for their negligence. Tho important thing is that this enormous power be removed from tho hands of a coterie of men and placed where It properly belongs, among tho policyholders. What Mr. Cleveland says of mutualization as applied to insurance companies may bo said, and has often been said, as applied to popular government. Paraphrasing for convenience Mr. Cleveland's statement, it may be said that ob stacles lie in the path of the republican form of government which are so inherent that even with the greatest study and care they can not be easily overcome. Republican form of govern ment, and control by tho peoplo, are pleasant to the ear, but in and of themselves thoy do not successfully Import good administration. If the people aro to bo "allowed" control In the govern ment under which thoy live ("allowed" is hardly the word) they should In some wny bo made to realizo their responsibilities as well as their privileges. Tho American peoplo have often seemed In different in the past, but who outside of the circles where princes most do congregate will say that this indlfferenco is an argument against the people being "allowed" a controlling voice in their government? In republics tho peoplo aro to be continually reminded that "eternal vigi lance Is tho price of liberty." When thoy become indifferent thoy pay tho penalty for thoir Indif ference, sooner or later and sooner or later their eyes aro opened. What a sad plight they would bo In If, when tho truth dawns upon, thoy find themselves without tho power to remedy their wrongs. And so It is with mutualization and policyholder control. They aro not only pleasant to tho ear, but they provide the means whereby the persons most deeply Interoated In the affairs of the Insurance company may protect their rights. 'NOBODY'S BUSINESS "-AN HISTORICAL EXCUSE A-representative of the Philadelphia North American, in his report of the meeting of the directory of the Lehigh Valley Railroad company, which meeting was held in December, 1902, said: Beauveau Borie, one of the directors who attended the special board meeting, was asked for information as to what had been done. "There was nothing of any importance or of outside interest," he replied. "That being as you say, Mr. Borie, would it not be to the best interest of the company and all concerned to let it be known just what the financial" matters acted upon were?" . "There has been too much Idle talk al ready. It is buzz, buzz, buzz, and nothing after all." "But, Mr. Borie, the public may think in view of what is talked around' that some thing of importance was acted upon, and this belief, when the facts are otherwise, as you say, might result harmfully." "Well, let them go to hell. It is nobody's business what was done, any more than it would be it I paid five cents more for a news paper." That was merely another way of slating, the opinion evidently held by Vanderbilt when he contributed to American literature-the classic: 'The pubjic be dd.'f T . Whether it be tho statement of Vanderbilt who is entitled to rank as a pioneer among the "trustees of God" or tho statement of Borie, it is, as Mr. Lincoln, referring to what ho called the arguments of thrones, said "the same old serpent." The same contempt shown for public opinion by Vanderbilt and Borie is felt, evidently, by the frenzied financiers and tho great insur ance managers who manipulate the funds of the policyholders for the benefit of the private ex chequer of insurance officials and their friends. Like those who in all the ages of the world have advanced arguments in favor of king-craft, these men "bestrode the necks of the people not that they wanted to do it, but because tho people were, better off for being ridden." Confronted with the protests of the masses in his day Vanderbilt said: "The public be d d!" Reminded that the public had some rights in his time, Borie said: "Let them go to hell! It is nobody's business." It is "nobody's business" that money contrib uted in the form of insurance premiums is used for the benefit of "a political party whose leaders may be depended upon to sanction: a continuance of frenzied financial policies. It is "nobody's business" that the money belonging to policyhold ers is used in speculation in order that enormous profits may be gathered by a coterie of insurance officials. It is "nobody's business" that United States senators traffic in the great prestige con ferred upon them through their official position. It is "nobody's business' that fraud and corrup tion are carried on in the various departments of the federal government where contracts are to be lot to those who will pay the largest bonus to the officers in charge rather than to those who will perform the work at the smallest cost to tho public treasury. It is "nobody's business" that corporation chiefs conspire in restraint of trade, violate the anti-rebate law and obtain mo nopolies upon tho necessities of life. The common rules of morality do not apply to tho champions of "national honor" and to the de fenders of "the business interests of the country." It would seem that these men aro above all law not only the law of the land but the law of God. What the public may think of their conduct Is of no importance. The opinion of the plundered policyholders is unworthy of consideration. Thesa men may violate the "trust reposed In them; they may grow rich through misappropriation of funds confided to their care; they may violate law when ever the opportunity to gain through such viola tion presents itself; and whenever it Is suggest ed that they be held to account they seek to hide behind the "business interests" of the coun try; and all too often they are protected because men in authority give serious consideration to the threat that prosecution of those lawless men would result la commercial disaster. 11 m t,&um-fttiM: Jn.M.,.
