, 1888-12-16
CHAS. FRANCIS ADAMS.
His Address Before the Boston
Commercial Club.
On the Effect of the Interstate
Commerce Act.
A Hitch Occurs in the Kilrain-
Sullivan Match.

Boston, Dec. l5.-Charles FranciG
Adams, president of the Union Pacific
Railway company, addressed the Com.
mercial club this evening on the subject OF
the present condition and tendencies of
r%ailroading in this country. He had been
asked particularly to express his views OF
the interstate commerce act and its
practical workings. He said in part:
Since the interstate act
went INTO effect two years ago there has
been what might be called a craze for rail
road construction. 1t was impossible to
pool and the long haul regulated the
short haul and the dishonest methods OF
rate cutting and other means to influence
the course of traffic resorted to or devised
during the past two years | do not hest
tate to say are unprecedented. On the
whole it Is a bad record Of the past.
When asked why | do not give informa-
ton and institute proceedings under the
law may say that while | am morally
sure that these things are done | cannot
furnish legal proof and it is this absence
of good faith which has brought the rail
road system to its present condition and
threatens to carry it still lower. To at
ribute 1t to the interstate ommerc act
is m utter mistake. If that act were
totally repealed Tomorrow it would pro-
duce but temporary relief. The railroad
system must help itself.
But in saying what | have said, L do
not mean to imply that in my judgment
the interstate act is a harmless
and much less useful piece of legislation.
On the contrary, | am very sure IS it
stands 1t Is not Its present effect, and its
future results are exactly those which its
trainers never contemplated. The pro-
cess of gravitation and consolidation so
Tar as the railroads are concerned was go-
ing fast enough before, but the interstate
commerce act has given 1t a new impetus.
Under the operations of the act smaller
local railroads throughout the country are
being ground out OF existence. 1t is the
long haul which brings in the profit.
The smaller independent railroads cannot
have this, and are being forced. whether
they ike it or not, into the maws OF the
lew great systems into which the railroads
OF the country are crystaliZing. Thus
the effects of the act are being felt at
small distributing points which are de-
priyed of their market, for those who
formerly bought of them can get the
same goods on better terms from the
larger and distant centers.
Contrary to every design of those who
framed the act its provisions have lent a
new impetus to just those forces it in
tended to hold in check. The int r state
commerce act, acting on the tendency of
natural forces, is rapidly driving us for
ward toward some grand consolidation or
railroad trust scheme. Even this, from
my point Of view, | can not regard as a
thing to be dreaded, | am very sure
great consolidated corporations or ever
trusts can be held to far ~stricter response
bllity than numerous smaller and con
tlicting corporations. A small devised
railroad clearing house scheme would
prove in practice whether SO intended or
not in the direct line of the enforcement
of the interstate act in all its
better features and it has many such. Ii
| were asked this evening for concrete
propositions | would say delay at least for
a time the present too rapid
tendency toward capitalization or
consideration by repeating 1.-THE features
OF the interstate commerce act, which are
precipitating events in that direction.