The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1875-10-26
COMPErIrION-CoMBINArIoN.


forms, have been granted by the General
Government, as well as by the State and
local governments, to the various rail-
way corporations Of the country. Under
the stimulus Of these grants numberless
schemes OF railway construction have
sprung into existence.
The system upon which the solicitors
for these grants proceeded was at once
felicitous and unique. 1t presented the
peculiar paradox Of an opponent to some
given enterprise becoming clamorous
for his rivaps success in obtaining
the grant, donation, or subsidy
fought for. Upon this being secured
then the demand would be Immediately
made for a similar grant TO the opposing
enterprise, because of the necessity
there was for avoiding monopoly in
one line de trlmental to the public inter-
ests for cheap transportation. And
&hus grants, donations, and subsidies
were layishly given in order that compe-
tition might protect the public from the
imposition of exorbitant tariffs on
travel and transportation by any monop-
olizing corporation. The intent was
good. The result has been only evil,
and that continually.
When those Subsidies were granted, it
was not even eonjectured that the CON-
petition instituted by the forming and
endowing of rival corporations would
% hn hnt n II
lously sought to be avoided. The law
making and subsidy granting powers
failed to perceive that these favored cor
porations, after dividing their forces to
Of the Government, would next combine
their forces to squeeze all they could out
of the people. Thus, competition, in
stead of resulting in the cheapening Of
transportation, has invariably led to
combination for enhancing the price Of
transportation.
At the inception OF these things it was
not presumed that the immense trunk
lines of railways, for the construction OF
which hundreds OF millions of money
and lands were solicited and granted,
would ever become, to all intents and
purposes, the private property of few
able and grasping fnanciers, to do with
as might seem to them good in their
own eyes; and that, consequently. the
plan OF general combination for their
particular interests was perfectly
feasible. This, though all unlocked for
then, has long since become a familiar
fact.
The report of Congressional Com
mitlee in 1874 stated as Il fact, that all
, tie trunk lines from New York to Chi
eago were owned and controlled by just
four men; and that placing an additional
i've cents per bushel on the tariff OF
transportation would yield $45, ZOO, 900 on
The cost of moving the grain crop of 1873
alone. Does anybody presume that to
gain even one-fourth OF that sum would
not lead to combination, and silence
competition, between any four mon hav-
ing the money grabbing instincts of rail
road men? Small chance would the pub
lie have by relying on competition to save
themselves from the burden of excessive
charges for transportation, when eombi-
nation for single year would enrich
four millionaires by the addition of othef
millions. Indeed, 1t may be accepted as
an axiom, that, in railroad business,
"compe;ition leads to combination"
A full exemplifcation of this is just
now being presented m the movements
on foot for combining the rival interests
Of the principal railroad lines of the West
leading to the East. This combination
requires only three men to accomplish
it--Vanaerbilt, Scott and Garrett. Van
derbilt controls the Michigan Southern
and the Michigan Central, both tribu'
tary to his New York Central. Gar
Yett has the Erie and the Baltimore 4
Ohio, with southwestern connections
over the Ohio & Mississippi. Scott has
the PENNSYLVANIA and Pittsburg " For
Wayne, with southwestern connection
by the Vandalia route. And now thu
proposition is, in view of winter CLOSING
the competing lines OF water transporta
tion, to effect combination of thcs'
railroad lines, so as toleyy contribution
TO an immense amount upon the trade 0
the whole West, with the Northwest ant
Southwest, to fill the Golfers of thos'
three srailroad kings"
Their programme certainly is no
prejudiced by any element OF modesty
The cost of transportation Of grain dur
Ing the summer has been at twenty "
cents per hundred, from Chicago to New
York, or fifteen cents per bushel 70
wheat. They now propose to combin
and put the rate up to sixty cents pc
hundred pounds, or thirty-six cents pc
bushel for wheat, more than double th
previous price Of transportation. Wha
is the peoples remedy for this? The
have none. Rival interests have becom
one by agreement among rivals, to whic
agreement the public is not a partl
Competition is swallowed up by comb
nation. Is it not time. quite time, tina
Congress, under It's constitutional pow