PAGE 2
Uh Nobraskob Indopondont
OCTOBER 19, 1905
.hipj.ed, but an hemmed hw'iwm mtit entirely offV-et this, loss.
It U to be presumed, however, that the railway officials have
ho adjusted rate that thy can make more on restricted business at
extortionate ratea than on m expasuuve business at low rates. Rail
way traffic official are ' under mmimi pressure to make as much
out of the hiV'3 a pOMibte for the benefit of the stockholders,
fmd if lower -rate would achieve this result they would undoubtedly
lower the rati on all roads except and this is an important con
sideration on meh road are befog manipulated for speculative
purpose, ..... . , .
The qtmlUm that prmirt iteelf h not, therefore, the paralysis
of bthsinega in general but lm mlwiiUm of railway net profits, and
this fa really vbat worries President Spencer, It is possible that
railway regulation will red md mrnmiut the dividends on watered
stock, The people of the country mmt decide whether all industries
shall U; injured to benefit tk? railway industry or whether the rail
way immtry fcball forego mnm of it profits for the benefit of all
other indofttrfc'ft,
Vrmithnt Btkhtiey of Hlw? Oreat -Western, who is gne of the
rlea rest thinker among .. rail way ofJjeiaU, . Mieves that, freight rates
could be lowered wilbont reducing profits, lie is of the opinion
that present Mgji rata are maintained because freight officials are
afraid to t&p&rittwnt with a general reduction of rates as a method
o( producing a greater amount of traffic, Testifying on this point
Vrteideni Htklcnay audi ',
'Tho real pmMem U to tad a rate wbteh will give the most net profit
try thfir ral'roa.4. That rale will t icost advantageous to the shipper and
railway alike, I most MJnotriWU tfeat by the passenger business. Several
years ago the rate us&d fo t;e a mile It was reduced to 3 cents,
and for & time ihejmmGnmr inmm to the raiiroads was reduced. But
soon the lower rale utitimtaied mote trafBe, and the net profits now are
acknowledged to he larger thm they would he under the 5 cent fare.
Whether the Z ami rate i tight vr whether the 2 cent rate would produce
more net re-fence', I am not clear, and there Is only one way to find out,
That is my eperiment Tim mnm principle pertains to the freight rates,
that ft is only by experiment ami experience that we can tell which rate
will prod nee the mmt net renmm. When that rate is found it is my opinion
that it is the right rate, 'Will mt traffic wove on an exorbitant rate so
long a It f not actually prohibitive?' asked Attorney Cowan for the gov
ernment, Ym, mm freight wonH move on an exorbitant rate, just as some
people woolfl travel at W wui& a tnite, imt it would not be a good rate
for the railroad became it would not produce the biggest net revenue."
Perhaps the only mistake President Stickney makes in this state
ment h hm zmzrtkm that "the real problem is to find a rate which
will give the mmt net profit to the railroads." : President Stiekney
thus places the intermto'ot the railway industry above the interests
of all other indoitrie and above the interests of the consumers,
who, in the last &myw, pay th.e freight The consumer would, of
(Mine, pay the freight if rates were reduced, but it would be a
lower freight At the same time the producer would be helped
hy the epanidon of bU business. The real problem, therefore,
would teem to be the .discovery of a rate that will be advantageous
to both the consumer and the producer while allowing the transporter
a fair profit or hh mtrvlem , .
President fymiwr' fears are based on the supposition that
the interstate commerce commission in time would lower practically
all rate. Although a general reduction is desirable it is unlikely
that the eommlmUm would lower many rates. It must be remem
bered that for ten years the commission exercised the power of not
only declaring a certain rate unjust but of designating a fair rate.
In the upreinc court decided that the commission must go no
farther than to declare a rate unjust. For ten years the rates fixed
by the eoni minion were placed in effect by the railways, and yet
during that decade there was no general reduction in rates by the
cofmiiifcfcion In fact, the exunmission fixed comparatively few
rate.
CHARGING ALU TRAFFIC WILL BEAR
Tn Iowa there U a railway commiHsiou which fixes local rates
below the range of charges that would obtain if the roads were al
lowed to charge all the traffic would ljear. riucli a comniission would
le a great loon in Xebrafska where rate extortion is notorious and
inb'hrabK Xext year the pcriple of the stiite will have an op
jwrluriity to signify at the polls whether they wish an ehftivo
railway ro!nrniion, In the light of their long-suffering under tho
iron heel of the transportation companies it is not diilicult to pre
dict tho verdict, TliH conimifKjon should 1k given the power to
fix ratci. Kor -honld thl pwi r le limited to the fixing of rates
in Mx-h fit- (,uy m amw befire the contiuission n compliint.
Fmpji-iitlv shippers who hive U t-n dU'riminnted "jKiiiit are deterred
(rum innkiny comphiintH thr.;ii;;h f r of future ill-tnvitment, Vnr
vit, Indh'idinil fMiiiihinuii iuit?ht be Induml to witlnlra'v llirir
rotitplAiutti if pruiui-d future favor, CYijwquently the eoinnition
should be given the pwer to investigate rates on its own initiative,
and, after a thorough examination, to fix such rates as it may deem
fair, these rates ,to take effect immediately and to remain in force
pending litigation. ,,. 1, ' V '
In Iowa freight rates are lower than in Xebraska. The figures
for, 1903 show that the net profits of the roads on 9,719 miles of track
were $15,076,1C3., In Xebraska the profits on only 5,G97 miles
were $10,425,416. If .the ; officials of Xebraska roads, are asked
why rates are so much higher in Xebraska than in Iowa they say
that thisjis due to the greater cost of service in Xebraska. But when
they ; are told that they should charge according to the cost of ser
vice they object, claiming that they must charge all the trafiic will
bear. v lf li;- ; ' ,
, , !, THE LABORER AND HIS HIRE
It is announced that G. E. Cunliffe, a money clerk for the Pa
cific Express company at Pittsburg, who disappeared with $101,000,
was paid only $55 a month in salary, although he handled millions.
On this meager salary he supported himself and family. ;
While CunlifiVs theft cannot be excused on the ground that
he needed the money to keep the, wolf from the door, it will strike
the average. man that the express company has been taught a lesson
it should heed. The president of an insurance company or of an
express company who draws a salary of $50,000 or $100,000 a year
ftjeU.no qualms when he is told that many of his employes who hold
responsible positions are receiving as salaries a pittance which he
spends every month for cigars. What is it to him thaf.Tohn Smith
or George Cunliffe is not paid enough to secure for himself .and his
family the ordinary necessities of life? If John Smith should plead
for an increase in salary on the ground that he is holding a respon
sible position he would be told that many other men would ,be will
ing1 to take his position . at the same wages. If he should plead tho
necessity of his wife and little ones he would probably be considered
an. anarchist. , . , '
; It is only when John Smith robs his employer of $100,000 or
$101,000 that the employer , Jiinderstanda.t'.ere is something
wrong with a system that pays less than living wages to a man who
handles millions. .When moral philosophy or sentiments of; charity
fail to, convince, a brief calculation in arithmetic denjonstrates.' to
the employer that it . is better to pay; his i money clerk satisfactory
wages than to have him run off. with $100,000, ; ' . : ' - ! ;
Th employer who. places upon a young man the responsibility
of handling millions, but who is unwilling to pay fair wages, for
services received, puts a ; premium on dishonesty, and will not see
his mistake until his pocketbook is touched. . ;,To touch the' heart of
the typical modern financier is a task that angels would shrink
from. ' ,. ; , ' ; ;, '.
At bottom the insurance president who .receives a salary of
$150,000 is frequently not, as honest as the. $55 clerk who steals
$101,000. ' The life insurance Revelations have taught us tliat.1 Fair
wages would keep many a young man from temptation, but a fabu
lous salary cannot keep some men honest. ' "
PRESIDENT SETTING BAD EXAMPLE
:. President Roosevelt and, .friends will' soon start on a jaunt
through the southern and western states at the; expense of the railway
companies. Free transportation will be furnished on a scale befitting
tho momentous occasion. . The chief executive will lend the . dignity
of his approbation to. a system of favoritism, by which. legislators,
judges and state officials of high and low degree have been bribed to
disregard or injure the interests of the people.
Tho president's trip at this, time, to say the least, is inopportune.
Throughout thenation there exists a rising spirit of protest against
free transportation., Tt is not: so many weeks ago that the president
himself was represented as giving, heed to this protest and it was
stated in the press, apparently , without foundation, that he would
thereafter pay his way on the railroads. About thit time Charles
J. Bonaparte was appointed secretary of the navy and when Jie took
tho offico he surrendered his railway transportation. This act was
widely approved and many thondit tlmt the new secretary was in
?))ired in what lie did bv the president himself. SVrtMry B(nip:irto
stated that he did not think thrt m a memler of the president's cd.j
tiet he ought to acecpt jvisses from trnnsporMtjon companies. If tho
Mcretary u wnitivo on thi point how mneh more pensitive hnnl(l
tho president I, But Mr. .Kmwovidt U nlut to bko n Ion? junket
for which the railways will my, or poHnpsJt would !m nirer the
jruth ro s'v th-t for thU trip the pooide will ultiiuitelv piV ,'.
much ft th'v iift eniMdled to piv ht'dicr :.'r raten that the
president ?'nd other j.ftwors ri-b frte,
To ty that what the president U nUmt to do U customary k an
