The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1897-11-19
Evening Herald
FRIDAY. NOVEMBER 10. 1sg7.
The Railroad Problem.

A number Of interesting and vulu-
able papers were read and discussed
at the recent conventions of the New
York Board Of Trade and Transports.
ton, each extending from three to
four days. Among these papers was
n read by Hon. Martin A. Knapp.
on the subject of The extension of
the Powers of the Interstate Com.
merce Commission" Mr.. Knapp /.
chairman Of the Interstate Commerce
commission, and he gave a clear and
thoughtful review of the railway
question, and of the Legislation
which is necessary alike for the per.
manent advantage of the public and
the railways.
In opening his address he makes
clear the important distinction be
tween injustice by rate-cutting and
injustice in rate-makinp The Com
mission, Mr.. Knapp claims, is power
less to ferret out the various devices
by which preferential rates are oh
tanned and to punish railroad officials
Tor failure to observe their published
schedules. These, he contends. are
determinations between individuals.
and should be placed in the category
OF misdemeanors. No amendment
IN the law by Congress in the direc-
tIo OF gtvingthe Commission greater
power in enforcing penal remedies
for r~ate-cutting, he thinks. will meet
the case, but the remedy may better
be found in legislation which will re-
move the cause for this species of
wrongdoing. In Mr.. Kuapp's opinion,
it can best be stopped in this way
How a rate-cutting be stopped
The most efficient and available
remedy for this evil, inmy Judgment.
is legalized pooling. The carriers
should be permitted and encouraged
to contract with each other for the
movement of competitive traffic, and
thereby have it in their power to re
strain and control the unseemly strife
which inevitably results in huctuat-
ing rates and vicious determinations
The benefits supposed to result from
railroad competition I heIieve to be
greatly exaggerated. Those who up
hold the present policy apparently
assume that the public gets the same
sort of advantage from competition
between carriers as from competition
between producers and dealers geuer-
ally. That this is a mistaken and
fallacious view l am fully persuaded.
The collective value of competition
rests in the power of selection, and he
who is debarred from choice must be
deprived Of any direct advantage
from the rivalry of others. As to
most of our wants-broadly speaking
every person in every place has the
opportunity to choose. And this lib
erty Of selection is commonly enjoyed
as to the ordinary needs of life,
whether simple or complex.
But in respect of railroad ~transpor-
tation only a few people compare
lively are so situated as to have any
available choice between carriers. So
that, without a%mplifying the argu-
ment, the simple fact is that only a
small percentage of population, and
an exceedingly small fraction of ter
ritory, are so located as to have any
practical opportunity for selection in
the matter of public carriage.
In advocating this plan of action,
Mr.. Knapp is advancing along the
lines Of the experience of railway
management, not only in the United
States, but in England and in all
other countries where railways are
not under state control. Such a
course of action would undoubtedly
secure that uniformity and stability
of rates which all right-minded men
desire. Mr.. Knapp takes the ground
that carriers should be allowed to
combine their facilities to the end
that wastefuI warfare between them
may be prevented and the economies
Of association applied to the bust
ness of public transportation. The
Interstate Commerce Commits
sion distinctly sets forth that
such combination would in no way
increase rates to the public, because
it would be within the province of
Congress to clothe the Commission
with proper authority to enforce just
and reasonable rates. Fair and work
able laws, he says, should be enacted
to protect the public interests against
e|xorbitant rates, and when these are
secured, the public have no particular
interest in the name in which the
business is divided between the sew
eral competing roads. The first ques-
ton is Of vital interest to the public,
the second of little Importance.
Special winter Excursions TO old Point