The evening times., 1896-07-15

Commissioner Martin A. Knapp OF the
Interstate Commerce Commission has writ
ten a pamphlet called .Railroad Pooling,"
which is interesting alike to all business
communities and to transportation com
panies generally. The paper was submit
ted to the American Academy of Political
and Social Sciences.
In his Summary OF the evils surrounding
the present manner of operating railway
properties, but three remedies are referred
to-government ownership, universal coz
solf,iation, or the pooling. AN rival inter
ests. The first is considered as out of the
question in this age, the second rs imprac-
t.cable, and the third feasible, as well as
desirable. The following is condensed
extract of the views therein contained:
There is little doubt that those who are
at all familiar with the situation of our
railway systems are practically united In
favoring some relief from the existing
prohibition of pooling and with such
persons the principal controversy upon
this subject relates to the safeguards
which are deemed essential to prevent an
abuse OF the privilege.
THE railroads are an agency of the state
for discharging aipublic duty of the higA
est utility. They are not venders OF mer-
chandise, free to make secret and varying
bargains with their customers. but the
purveyors OF a public privilege which all
are entitled to enjoy on the same terms.
Neither official station, personal distinc-
ton, nor patronage of unusual volume fur
nishes a defensib!e ground for giving one
man cheaper conveyance than another.
Every function which government performs,
every power which 1t directly exerts,
and every activity which it assumes to
control must be exercised for the equal
benefit of all.
EQUALITY OF RATES.
The farmer who sends but one letter
year is entitled TO the same rate OF post
age as the merchant who sends hundreds
day. The measure of import duties is the
same, whether the entry be case or Il
cargo This should be the rule applied to
railroad charges. The larger shipper is en-
titled To no advantages over his smaller
competitor, either in rates or facilities.
for both should be served on the same terms.
If concessions to particular persons be-
cause OF their greater influence or patron
age would not be possible under govern
ment ownership they should not be per-
mitted under private ownership. If in
one case tile rule OF equality would be
observed, in the other 1t should be en-
forced.
LAS l look at the matter, the state has
as much right to farm out the business of
collecting its revenues, and allow the per-
sons performing that service TO vary the
rate OF taxation according to their own
interest, as il has to permit the price Of
public carriage to be the subject or spe
cial contract or secret dicker, to be made
unequal by favnritsm or oppressive by
extortion.
.The ultimate effect of preferential rates
is toconcentrate the commerce ofthe country
in a few hands. Tie favored shipper, who
is usually the large shipper, Is furnished
with a weapon against which skill, energy
and experience are alike unavailing. When
the natural advantages OF capital are ug-
mented by exemptions from charges com
monty imposed, it becomes powerful enough
to force all rivals from the field.
SECRETS OF MODERN TRUSTS.
III We could unearth e4re secrets OF these
modern trusts whose surprising eX-
pioits excite such wide apprehension, We
should find Observation-Disclosures menacinS
growth IN the syste euIatic methods by which
they have evaded the burdens of transpor-
tatioD The reduced charges which they
have obtained, sometimes by favoritiSm,
ofteDer by force, account in great measure
for tue COLOSSAL gains Which tney have -
cumulated."
The situation of many railroads at the
present time is not unlike that of the great
powers OF Europe. Each in state of armed
neutrality watches the other with jealous
| suspicion. Their revenues are depleted. their
management embarrassed. their usefulness
greatly impaired. They collect from the
people more than So 200, 900 every twenty
| four hours-yet their surplus receipts fire.
quenuy fail below the requirements of SOL
vency.
Making ample allowance for dishonest
construction, excessive capitalization and
wasteful methods of operation. the fact Is
| positively startling that 60 per cent of our
| railway mileage has never paid a dividend
| on is stock obiigat, ons, while more than
| a quarter of that mileage is now. or has
| recently been, in the hands of receivers,
| through inability to meet interest ON mort
| gage Indebtedness.
| practically, the choice lies between COM
| petition on the one hand. with the incyita bic
| outcome of discrimination, which favors
| the few at the expense OF the many, or like
| charges for like service. which can be re-
| allied only by permitting and encouraging
| cooperative action by rival railroads. TIE
| power to compete. is the power to dis
crminatc. and it is simply out of the ques-
| tion to have at once the absence of dis
! elimination and the presence OF compcti-
| ton.
: All Observation-Disclosures OlIcU-
| ses by rate-cutting and offenses in rate
| making-is frequently overlooked. For
! thisreason, doubtless thereis much miscon-
"ention both as to the scope of existing,
laws and as to the power of Congress to
! legislate upon the subject. In many quar-
ters 1t seems to be supposed that the chief
| duty of the Interstate Commerce Commits
! sion is to ferret out the various devices by
| which observation-disclosures obtained, and to
punish railroad officials by failing to OBJ
| serve their public schedules. Such the
ory ho wever, is wholly erroneous and mis-
| leading.
| WEAKNESS OF THE LAW.
I'm enforcing the penal provisions of the
act to regulate commerce the ordinary
machinery of the criminal courts must be
employed. and there is no other way by
which those provisions cau be enforced
If immunity from these demoraliZing