The times. [volume] (Richmond, Va.) 1890-1903, 1897-03-25

chant was afraid TO order goods to-day for
fear cut In the cost OF transportation
tomorrow would cheaper the goods ana
enable a local rival TO undersell him. a
revision to this state of things would be
an injury not only TO the railways them-
selves but to the entire community.
Business interests demand first. just ana
reasonable rates: second, uniform and un-
discriminating service. and. third. sta
bility of rates. AS to the first there is
no fair ground for complaint. The over
building OF railways Gas much as thirteen
thousand miles having been constructed
I'm a single YEAR,, the needless duplication
of existing lines, and the consequent
fierce competition among the roads long
ago reduced the rates so that the average
cost OF hauling ton one hundred HileS
is about eighty cents, or less than ONT
half the average charge on the rihi"ays
Of Europe. The shameful DETERMINATIONS
between shippers whereby such monopo-
lies as the Standard Oil Trust was Dul"
up were in the main abolished by 'hS
creation of the Interstate Commerce LAY"
but this utterly failed to secure the tnird
requirement - namely. stability in the
rates, so that manufacturers ana hier-
chants could figure with reasonable as
surance upon this important edement III
the cost OF producing and distrlDu''he
commodities. -. ,h,
Railway managers declared that the
orI,, uav IN secure stability was by having
all the competing lines In a given terri
tory work i'm harmony-in other WORDS 10y
forming pools But the interstate act pre-
vented this After experience unuer 'he
working of this law some OF It's Original
advocates advised the repeal OF the anti
pooling clause. Many merchants ana COM
mercial organizations favored lhlS' anu
hill 10 secure the repeal was introduced
I'm Congress and passed the House
wear ago. but failed in the Senate. Mean
while the roads many Of them bankrupt
ed or impoverished and tired OF cutting
one another's Threats, stroye 10 reach
some basis of agreement. In the summer
of 1885. when their great meeting was heiu
in this city. grain was being carried iroi"
the Mississippi river TO the seaboard lor
ten cents a hundredweight. Al that tlme
the mileage Of an empire was III inc
hands of receivers. bondholders were iore-
closing. and stockholders, instead OF get
ting dividends were contributing hedNS
assessments to put the companies on the"
feet. The extent to which all TINS was
caused by inflated capitalization ana as
honest management, 1t Is aside from OUT
nresent purpose to discuss. IL is SUM-
Gent to say that the prevailing rates were
not only ruinous to millions OF investors
but by their uncertainty and constant va
rlations demoralizing TO trade.
Bv strenuous efforts the existing traffic
associations were organized, and the
weaker lines or those less favorably SIT
uated are by the stronger ones allowed a
"differential'-that IS to say, they are
permitted TO carry freights at slightly
lower charge than their competitors-as
an inducement to adhere TO the tariffs
fixed by the associations. These organl-
cations have been characterized as In ei-
feet pools. and suits for their dissolution
begun in several States as being in viola
ton Of the Interstate Commerce act ana
the antitrust law The trend OF judicial
opinion has been TO the effect that the
latter did not apply to common carriers,
and this was the decision Of the United
states Circuit Court Of Appeals In this
city last week I'm the suit against the
Joint Traffic Association. The highest
tribunal. however. now decides that the
antitrust law does apply to railways.
and opens the way for suits TO dissolve
the traffic associations Assuming that
such suits can be successfully conducted.
their institution would be OF doubtful
expediency There are. ut any rate, two
sides 10 this question. The regulation Of
nearly two hundred thousand miles OF
interlaclng lines IN such a way as TO
conserve the interests Of the public, and
with honest regard for the rights of in
vestors. IS a complex and difficult prob
lem. How difficult it Is may be inferred
from the fact that on the question just
decided the highest body Of tSined law
yers in the land was almost evenly di-
vlded. and that a radical difference Of
opinion exists among the railway experts
OF the Interstate Commission.
We are inclined to think the solution
will be found In permitting the railways
10 form traffic associations under super
vision Of the Interstate Commerce Com
misson.-Now York Herald.