Newspaper Page Text
iMM'SON’S weekly 1
710 s JEFFERSONIAN b&
EDITED BY
|1 THOS. E. WATSON S
JI ,g T
Vol. IL No. 37.
2-Cent Tare Pays Nelv Haben
Well, Mellen Says.
Law Vetoed by Gov. Hughes Proves
By Experience to Be Success.
President Charles S. Mellen, of the
New York, New Haven & Hartford
Railroad, officially admits in his an
nual report that the two-cent passen
ger rate has proved a paying proposi
tion. During the year since its in
stallation Mr. Mellen finds that the
gross earnings of the New Haven
have increased 5 per cent.
In New York State the bill calling
for the same two-cent fare which Mr.
Mellen finds so successful was vetoed
by Governor Hughes after it had
passed both houses. The Governor
gave as his reason for the veto’ that
the two-cent rate was unfair to the
railroad corporations, saying:
“Injustice on the part of the rail
roads toward the public does not jus
tify injustice on the part of the State
toward the railroads.”
Upon the same subject of railroad
rates the Independence League last
Saturday incorporated this plank in
its State platform:
“While we commend the Governor
in this respect, we cannot but con
demn his veto of the two-cent fare
bill; a measure advocated in the Inde
pendence League platform, in accord
with public sentiment as expressed
by the legislatures of many States,
voluntarily put into practice by one
great railroad system, and wherever
tested by actual experience, an ap
proved success both from the stand
point of the railroads and of the
public.”
Mr. Mellen’s official report to his
stockholders is a complete confirma
tion of the League platform state
ment.
The report thus adds its testimony
to the experience of the New York
Central, # which has found the two
cent rate immensely profitable, and
to the Erie, whose increase in passen
gers carried was 1,383,701, due, as
the officials of that road admit, to
the reduction of its commutation rate
to the two-cent point or lower.
The New Haven test of the success
of the low rate fare was even further
confirmed in advance last Sunday in
the statement given to The American
by Attorney General Hadley, of Mis
souri. Os its operation with the
Western linos that have adopted this
rate, the Attorney General wrote:
“There is no question that the
travel has been greatly increased
since the two-cent fare law went in
to effect. I know that the receipts
of the Kansas City Union Depot in
the months of July and August were
$2,000 a month in excess of the same
receipts for the same months of 1906.
Atlanta, Ga., Thursday, October 10, 1907.
I am also reliably informed that the
receipts of the St. Louis Union Depot
are larger for the same months this
year than in 1906.”
In spite of the frequent statements
made that the New Haven would be
forced to suspend improvements to
make its sheets balance as soon as
it adopted the two-cent fare, Presi
dent Mellen shows that tremendous
improvements have been made with
in the year.
The gross earnings were $55,601,-
936, against $52,984,322 for 1906.
The gross expenses increased seven
per cent, but Mr. Mellen does not
attribute this increase to the reduced
passenger rate. Instead, he says it
was due to increase in wages, cost of
material and an increase of 25 per
cent in the per diem rate for the use
of freight cars, against which the
company indignantly protested.
Net earnings of the company’s
street railroads this year were $3,-
619,899; from steamship lines, $635.-
127, and income from other sources,
$2,077,874, making the total income
for the year $24,080,755. Deductions
from income this year were $15,187,.
714, as compared with $9,752,115
last year, and net income this year
applicable to dividends $8,893,041,
as compared with $10,185,377 last
year.
HOW PANAMA CANAL ADVO
CATES DEFEATED THE
NICARAGUAN SCHEME.
A very warm friend of the late
Senator Morgan, a gentleman who has
been associated for a long series of
years with journalism, mentions some
very interesting facts concerning the
Isthmian Canal connecting the two
great oceans. In referring to this
great work he said recently:
“It is well known to the public
and to observers generally that in the
beginning it was the impression of no
few of the leading statesmen, scien
tists, military, and naval men and
others who had given much thought
to the subject that at some time or
other a canal would undoubtedly be
constructed. Not only Senator Mor
gan and a great many men in his par
ty, but a large majority of the Re
publicans favored a Nicaraguan
route, and it was after a long and
careful consideration of the subject
in the Senate that that body passed
what was known as the Nicaragua
bill.
“There was also a very strong en
listment in the House among the lead
ing Representatives in favor of the
measure as it passed the Senate. Es
pecially strong was the support given
to it by Mr. Hepburn of lowa, chair
man of the Interstate Commerce Com-
mittee, and it was also well known
in some quarters that a majority of
the members of Mr. Hepburn’s com
mittee also favored the Nicaraguan
route.
Hepburn Yielded to Burton.
“When the bill reached the House
Mr. Hepburn was thoroughly desirous
of having it referred to his commit
tee. Representative Burton, of Ohio,
chairman of the Committee on Rivers
and Harbors, backed by the members
of that committee, decided that they
would make a move to have the meas
ure referred to their committee.
“Before the bill was called up Mr.
Burton one day went over to Mr.
Hepburn’s seat and earnestly talked
with him on the' subject of a proper
reference of the Senate enactment.
He assured Mr. Hepburn that if he
would consent and allow the bill to be
referred to the Committee on Rivers
and Harbors he would exert himself
to see that Hepburn should have a
full and thorough oportunity of be
ing heard in the House, and would
assure him of having the same oppor
tunity before hig committee. With
this understanding Hepburn yielded
and made no contention against the
bill being sent to the Rivers and Har
bors Committee.
“In the meantime whole lots of new’
features were presenting themselves.
As soon as the bill had passed the
Senate the Panama contingent inter
ested in the matter and the French
representatives of the plan, headed
by Mr. Cromwell, the attorney of the
French holders of the old Panama
scheme, which was initiated under De
Lesseps, appeared on the scene and
had conferences with several of the
leading Republicans, including Speak
er Reed. Mr. Cromwell declared to
Mr. Reed that it would be a great out
rage to allow the bill providing for
a Nicaragua route to pass, thus ig
noring the Panama design and the
rights of the French holders of near
ly $100,000,000 which had been squan
dered and lost in that enterprise. As
a result of his active work and earn
est arguments Cromwell enlisted
Speaker Reed in his behalf.
Reed Sent for Burton.
“Then, when the bill was at last
referred to the Committee on fivers
and Harbors, Mr. Reed sent for Mr.
Burton, chairman of the committee,
and informed him that the Panama
interests wanted to be heard before
the committee, and the Speaker did
not hesitate to express his opinion
that these interests should have their
requests assented to.
% “Accordingly a day was set and
Mr, Cromwell and his associates in
the Panama scheme were invited be
fore the Rivers and Harbors Commit
tee, and vigorously presented their
side of the case. I might say here,”
said the gentleman who related these
incidents, *‘ that the Speaker had, pre
vious to the hearing before the com
mittee, sent for some of the members
Price five Cents.
of the committee and talked with
them on the subject.
“The Panama interests made out a
very strong case, and it was decided
that before any further action was
taken the committee should ask Con
gress to appropriate $1,000,000 to pay
the expense of sending out a com
missio nos engineers and practical
business men to examine into the
whole subject, taking in the feasibil
ity and practicability of the two
routes —the Panama and Nicaraguan.
This feature appeared as an amend
ment.
“When Mr. Burton reported the
bill to the House from the committee,
Representative Hepburn was very in
dignant at the action the committee
had taken in adopting the amend
ment, as he felt assured that the
Nicaragua bill would pass the House
by a large majority. He immediate
ly repaid the visit which Mr. Burton
made to his seat when that gentle
man was anxious to have the bill re
ferred to his committee, and said
some things that could not have been
pleasant for the Ohio man to hear.
He was very indignant, and asked
Burton what he meant by deceiving
him in saying he should have full op
portunity in pressing the Nicaragua
bill. Mr. Burton meekly replied that
he was forced to take the course he
had taken, and admitted that he had
not done what he promised.
Adopted Bill as Reported.
“The bill came up and the report
of the committee was adopted. Ac
cordingly the President appointed a
commission and they visited both the
Panama and the Nicaraguan terri
tory where it was planned to con
struct the great waterway. The com
missioners also gave a hearing to Mr.
Cromwell and the Panama contingent,
and these gentlemen, in presenting
their case, thought they ought to have
a hundred millions of money for the
work that had already been per
formed under the De Lesseps man
agement. The members of the com
mission pondered a great deal over
this demand, but in the end agreed
that it was excessive and refused to
give it further consideration. They
accordingly recommended the Nicara
gua route to the President.
“In the meantime the French
holders of the bonds, under the in
fluence of their attorney (this same
Mr. Cromwell) agreed to reduce the
amount they wanted to be paid to
them from one hundred millions to
the sum of forty millions, which, in
their opinion was, under the circum
stances, a paltry figure. The moment
this was ascertained the commission
ers reversed their action and recom
mended the Panama route as the
most feasible. The report was final
ly adopted by Congress, and thus
the Panama route was agreed upon.
“Senator Morgan and his friends
were disappointed, and also indig
(Continued on Page Sixteen,)