The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-12-25
WHAT ADAMS SAID
ABOUT RAILROAD CONSOLIDATION
AND THE INTERSTATE LAW.
The Tendency to Consolidation More
Than Ever Threatens the Little Rail-
road Concerns-They VIII Be Swal-
lowed Up by the Larger Ones.

have provoked so much discussion by
newspapers and railroad men and which
The APPEAL commented upon at length
on Friday last:
Since the Interstate Commerce Act
went into effect two years ago, there has
been what might be called craze for
railroad construction. Great corporations,
one after the other, have contracted the
madness, and have built hundreds of
miles OF road, almost paraleing each
other. In many cases they have actually
parelleled each other across wide tracts OF
country in which no human being lived
The construction Of all these miles OF rail-
road, for which hardly any immediate de-
mand existed, made reimbursement Of
traffic necessary. The Interstate Com
merce Act was in operation. 1t was inn
possible to pool. and the long haul rcgu-
lated the short haul. Then followed depth
OF railroad morals among freight
agents lower than had previously existed
and that is saying much. Tho dishonest
methods OF rato-cutting, the secret systems
OF rebate, the indirect and hidden pay
mentl made TO influence the course Of
traffic, rcsorted TO or devised during the
last two years, do not hesitate to say are
unprecedented in the whole bad record OF
the past. In this respect, | endorse every
word of indignant denunciation which
Judge Cooley, OF the Interstate Commerce
Commission, Is reported to have recently
uttered. Ii will be asked why the penal
ties Of the Interstate Commerce Act are
not enforced against those who thus di-
rccily and indirectly evade is provisions
The question may he asked Of me: Why
do you not give information, and institute
proceedings under the law2 ! merely say,
in reply, that, apart from prejudice
against being an inlormor, while | am
morally sure that these things are done, /
cannot furnish legal proof Of them,
My information comes Indirect
~ or ut second hand; and,
while / have no doubt myself of lbs
accuracy, yet II were brought TO book rs
to time and place and circumstances, |
could not give them. II is this absence of
good faith which has brought the railroad
system TO its present condition, and threat
ems 10 carry 1t still lower. To attribute il
TO tho interstate commerce act Is an utter
mistake. II that act were totally repealed
tomorrow IL would produce but tempo
rary and stock jobbing relief. For few
days things might he apparently better
hut they would be sure 10 drop heavily
back again into their present bad estate,
unless the knife Of reform went dcepcrand
cut ut the root OF the evils | have referred
10. The railroad system must heal Itself
no net Of Congress or repeal OF any act Of
Congress will greatly help IL.
But in saying what | have said, / do
not mean 10 imply in my judgment the
Interstate Commerce Act Is a harmless,
much less useful piece OF legislation.
On the contrary, am very sure that as IL
stands, il il not. II has been in operation
two years and We now begin to feel It's
effect, and TO be able 10 forecast It's results.
And both It's present effect and its future
results are exactly those which is trainers
mover contemplated and from which, II
they realized them MS VIC 10. ihey would
fccol. The proccta OF praNitation and
consolidation 80 far as the railroads are
concerned, was going ON fast enough be-
fore, but the Interstate Commerce Act has
given Il new impetus. Underline opera
ton of the act, the smaller local railroads
throughout the country are being ground
out Of existence. II Is the long haul which
brings In the profit. The smaller Undo.
pendent railroads cannot have the long
haul aud can only bo operated
prollably In connection with the
larger railroads They arc thus,
one by one, becoming unromuncatiyc,
and being forced whether they like
II or not, into tho maws Of the Tow great
SYSTEMS into which the railroads OF the
country arc rapidly crysialzing. Just as
the small, local railroads ard crushed out
| Of existence by the anii-pooling clause, 10
the local points OF distribution and second
class business ccnicB throughout tho
country lind themselves, because Of the
long and short haul clause, unable 10 COM
pete with the great commercial ccntCrA
Imillc, under the provisions Of the act,
must inevitably seek the railroad having
the long haul "a the most distant and larg.
est center The operation OF the law In
this respect IL now beginning 90 mako
itself felt upon the smaller distributing
polniA They are deprived OF their mar
kcts. for those who bought oi them can
gut the sumo goods on better terms lrom
The larger aud more distant cCntcrs The
old local system Ut distribution IN broken
up In favor Of the centralized system. In
other words contrary 20 every design u
ihosc who framed the act, IT, provision
have lCni a now impetus 60 Just thos,
forces which u was intended 10 hold 10
check. Instead ol building up the locn
road aud the small distributing ccntrr,lt \
working the sure destruction Of both.
Under the circumstances. Il may per
hlps be asked what my view Of the iuiur
h. and what should now be- done. Tia
railroads OF Liis country are moving mp
idly toward some system IT consolidation
/ do not know when uf how u will com
nhuug nor b % necessary nov a. Considr
this Neither DO bclioyc u will PROV
an evil when u does come. Nevertheless
10 isa matter u common noioficty tina
, such result u viewed with grave, popula
: apprehension. We have seen what th
pfogVss II tho last twenty yCau has beef
In this respect Capitalization has gou
ON during those years, Ho that, while the
. q m.liual Of 200 or 200 miles was consid
! ! end large. one NJ 1900 or GOO1 miles
now Gar from being The largest Tho mex
move will Do iu thc direction oi milrua
syHtcms Of .O. 900 miles each, under un
common management Tho lnlcmtni
Commerce act, acting on the tendency ,
natural lurcCs. 10 ~ this moment rapid
driving us forward toward some gran
railroad trust scheme. Even this, ifor
my point Of view, ! cannot regard as
thing 10 be- dreaded. ana very surc nov
y as ! have been iur the last tWcni
Z years and as / long ago cXprtsc
mysull that great consolidated cDrpou
ton. or oven trust, can be- held 10 q
. siflclUr responsibility 90 the law than M
9 mcrous smaller and conflicting cupou
tons lndCr The existing system no on
can b. held to account Evasion l. ulW q,
possible, aud invariably Il Il tie 10Th,
( man Who irresponsible Tor the wickcdncs
D I'D