The Grange advance., 1874-05-06
1oxseksne tor =Cheap franspo por tiiationi.

/ Most Of our readers are, no doubt, ia
miliar with the fact that Senator Win
dom, as Chairman of Congressional
Committee, spent the past summer trav-
cling over the States, collecting informa-
tion, and studying up the whole ques-
tion Of transportation, from the West to
the Atlantic seaports.
At the time Of presenting this report
to the Senate, Mr.. Window made a
lengthy and carefully digested speech
Neither the report nor the speech can
be said to contain much new matter, but
rather series of old facts carefully COL
lated and presented in a condensed
body. They are: however, none the less
valuable for lacking novelty.
As this subject will engross much Of
the attention Of the thoughtful portion
Of our readers, We bring in review a
prominent feature which the committee
found as result Of the English COM
petitive system, which has proved fail
ure in securing reduction on freights.
That where two or more parallel roads
have been chartered and built, all work
ing for share of the same business,
they never compete in prices, but invar
iably agree to keep up the rates so that
the public derive no gain from the in
crease of roads.
This point was extensively investigated
by collecting proofs from many different
nations, and the conclusion arrived at, is
that the plan of creating competing roads
has in all instances proved failure
The report says:
HOW LITTLE COMPETITION DOES.
First. Competition between railways
and it's promotion by additional lines.
In order to understand the nature, ex-
tent and value Of unregulated railway COM
petition have carefully studied the history
Of railwsy combinations and consultations
in other countries, aud find that however
diverse the principles of government under
which their systems have grown up or the
regulations which have been imposed by
law, actual and effective competition be-
tween railways is unknown. Combination
is the natural law Of their development
Competition. which is 80 powerful a reguln.
tor in other commercial affairs, will not
suffice to regulate railways unless it be
itself regulated by some power higher than
tho motives Of selfinterest which govern
railway managers.
In Great Britain, Parliament, with un-
limited powers, having struggled in vain
for years against amalgamatlon, has ceased
to look for relief in voluntary competition.
The actual effects Of railway competition in
| that country, and the greater combinations
and more powerful monopolies which it ul-
| timately induced, have hisheartened those
who regarded it as the panacea for railway
evils and abuses, and it is said that the
present tendency of the public is toward
State ownership as the only etfectual rem
edy. The late parliamentary commission,
after an exhaustive investigation Of the whole
| subject, conclude their review Of the history
Of railway amalgamation with the state
ment-
THAT while committees and commission
ers carefully chosen have for the last thir-
ty years clung to one form Of competition
after another, it has nevertheless become
more and more evident that competition
must fail to do for railways what it does
for ordinary trade, and that no means have
yet been found by which competition can be
permanently maintained. = * y
ho Ant~ ,>,,lo J,A
there is now no active competition between
different railways in the matter Of rates
and fares. Whenever different companies
their prices. X And if a
the promise Of lower rates, it is sure, after
a short time, to arrange with its original
rivals Oh a system Of equal charges. -
The experience of our own country ac
/ cords with that Of Great Britain in this re-
gard.
The theory here, as in England, has al
ways been that the transportation business,
like other commercial affairs. would regu-
On this theory our railroad system has at
tanned Its present gigantic Proportlons.-
Believing that additional lines would create
and stimulate competition and thereby re-
duce rates, towns, cities, counties and
States have made haste to burden them
selves with debt in order to secure the Gov
eted boon. The General Government hav-
ing never interfered, and but recently the
States having made but little effort to con-
troll or direct it, the system has developed
itself under the influence Of the natural
laws which govern tina: kind Of business.
Hence the tendencies and results evolved
by the operation Of those laws, if carefully
studied by the light Of the experience Of
other countries, will enable US to form an