New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-11-22
THETRUNKLINE AG REEMENT
ITS EFFECT ON TRANSPORTATION INTER
EsTS.
SENATOR cHANpLERs CONVENTIONS As TO IT'S

DANGER ANSWERED BY JOSEPH NIMMo. JR
To the Editor Of The Tribune.
/ Sir: Senator William f. Chandler was recently re-
norted to have declared in letter addressed to the
Interstate Commerce Commission that the compact
formed last July between the railroad companies
COMPOSING the Trunk Line Association is danger
ous trust and that II will have the effect OF abolish
ing competition. This utterance Of one so able and
co sincere In his convictions as the distinguished
Senator from New-Hampshire has naturally at
tracted public attention. believe that the senator
and all others OF his OF thinking upon this sub
iec, are absolutely in error. So without the slight
est personal interest in the compact called IN ques-
ton and without any particular reference TO II
shall. as briefly possible attempt TO snow mat
cor,nacts such as the one which Senator Chandler
assaUs are sharply conditioned by forces beyond the
: control Of those who make them that they do not
abolish any competitive force whatsoever, and that
they subserve the necessary and banehcent purpose
/ Of restraining and regulating competition by meas
ures protective of the general pubic interests.
To, us first consider the restraining conditions
! ~ environment under which railroad transporta-
ton exists in this country. The marvellous extern
slon Of railroads and the facilities provided FOR
the continuity OF traffic over the lines OF different
/ companies in connection with the ie.eSraiA
/ brought all the markets and all the commercial
interests OF the country into instant and Intense
connections The tendency OF such facilities was
rrcsistbiy toward a parity of values ms OF
course dragged transportation charges down. lor
the forces Of commerce in this country are
bundredfold more potential than are those OF
TRANSFORMATION. In spite or the eroTts maze by
/ railroad managers to maintain the staAdard Oh
rates the average rate on the principal railroads.
including the great trunk lines. Is to-day ohiy aoout
/ one-third what ii thirty years ago ihere Is
! not to-day a commodity sold or service reh-
! dered in this country the value Of when Is more
| .,, co,,rollod by commercial conditions than
is that OF railroad transportation. And yet SEN
ator Chandler assumes that in some manner "hch
nobody has ever yet been able 70 eAp'a'"' .''e
railroad companies under the compac's 10 "hch
he objects will be enabled 10 Tx rates 10 SUIT
! themselves The competition OF commercial FORCES
rresents an insuporable barrier to any such capri
cious rate-makng. and establishes the commercial
/ value OF transportation services
Second railroad transportation exists III tllS con-
.r under conditions Of saif-restraint which abso-
! ue.y prevent the companies from aoohshihs com
petition or exercising any undue or autocrauc innu
/ ence over rates This came about as follows: Al
first railroad companies adopted ana ris1V auheteu
! ~ the nolicv Of disassocltcd traffic, but circum
stances beyond their control and the provisions Of
statute Jaw forced them into one great iainiy OF
svsten of transportation. The struggle for 'rahic
| which then ensued rese.nbled that between heHs
! over the share OF the estate which had taleh 70
| them Secret rates favored shippers became the
! rulo and determinations OF the widest ana most
/ demora.izng character prevailed. The whoe Dus'-
ness Of ra broad transportation Eel into confusion
| and the result; that the commercial and Indus
! trial Interests Of the country became demoralzed
| In time II became evident 10 al that agreements
as 20 the share Of the competitive traihc which
! should be awarded to each competitor constitute
tho only effective remedy against the evils Of rail-
road OF rates.
CONTACTS NOT ALWAYS VICIOUS.
T. Is altogether absurd 10 assume at this age OF
the world that compacts in restraint OF trade are
necessarily and invariably vicious. The idea that
competition can. under present conditions exist IN
the absence OF wholesome restraints Tor the mann
| tenancA of order and justice has long since been
abandoned both in judicial reasoning and in estab-
Iished views OF public policy Competition j. under
certain conditions the life Of trade. but there IS
po!nt beyond which it degcne into disorder ana
! becomes the swoon Of existence the syncope of
effort Railroads a. they exist to-day have created
| a thousand times as much competition as they have
DESTROYED
Senator Chambers IDEAS in regard to the free
dom Of competition among railroads revert 10 a
! condition Of dsassocatoi railroad competition
! which existed In this country forty years ago. but
| which will never again become regnant. The leg
lslation Of the country has already relegated all
! such ideas 70 the shades OF oblivion. The act Of
June 49, 1866 authorizing the junction Of tracks ana
the common OF ireightcars. ana Section OF the
! Act to Regulate Commerce February T. $50 pro-
vdes for the lnvolabilty OF through traffic. These
statutory provisions constitute the charter of the
American railroad system. the greatest Of all rail
| road combinations. In the public mind these and
other features OF railroad combination are res ad-
| judcata II is too late in the day to have re-
course to theory OF railroad regulation which goes
| in the face Of the lessons of experience and Of
! established usage.
Besides the plan of dividing competitive rail
road traffic has been proven to be not only effective
IN preventing rate war;. but thoroughly benefcent
! in its practical operations. In practice such agree
| ments do not and cannot enable any railroad COM
pany 20 establish above the commercial value
Of transport alton services. This Is not theory but
/ matter of experience. Many students Of the trans
portaton problem of high standing and Of great
ability. who formerly opposed such agreements,
mainly for the that in ordinary parlance they
had acquired tho inappropriate and misleading title
of pooling" have since become convinced OF their
/ error and confessed IT, Among theGe am happy
10 mention the Of ex-senator John III. Reagan.
of Texas. VINO for several years has been Railroad
| Commissioner OF his state.
II is also q great mistake TO assume. a. Senator
Chandler does that direct competition between rival
lines has been he destroyed by railroad as
/ socl4tions such a. the which ne opposes Rail
/ road competition Is restrained and regulated b.
/ such associations. and It exists under their rule
/ az a latent force: lust as all c.yl government is
/ largely builied upon and conditioned by latent
forces As ihus constrained. direct railroad compeu-
tion survives the inspiring ana sustaining motive
| Of that splendid system OF self-g1vernment which
| has been prompted by enlightened views of self
interest, and which has eliminated in the American
railroad system the cheapest in point OF transporta
ton charges. the most efficient. ana in AL respects
the grandest system OF transportation eyer seen
this globe. This great system OF railroad trans
portation furnishes one OF the most striking Illus
! trations of the bonehclnt results Of wholesome
/ restraints upon competition.
Senator Chandler. however. adheres TO the opinion
that an association involving agreements TO rates
/ and the maintenance Of rates cannot be otherwise
than prciudicial TO the public Interests. In this
the Senator is behind the times The act 70 regulate
/ commerce. commonly known as The Interstate Com
mcrce act is based upon the idea Of allowing the
railroad companies TO enter into agreements a. to