The Providence news. (Providence [R.I.]) 1891-1906, 1897-05-18
AMERICAN RAILROAD POOLS.
Elucidation of Business Factor OF
Vast Importance to Whole Country.
THIRD PAPER.

VAST Importance 10 Wnoie country.
THIRD PAPER.
The conditions which led to the Inter
state act were dealt with in the window
report Of 1873 and the Reagan bill of 1879,
and were reported upon fully by the Gull
lom committee in 1886, which held the
railway system 90 eighteen counts, eleven
of which related TO Determinations the
others 10 undue rates, capitalization,
management, classification and engaging
I'm extranouos business. Time has non
suited the last seven complaints.
That report anticipated what experience
has fully confirmed when it declared
that "A problem of such magnitude, inn
portance and intricacy, can be summarlly
solved by any master stroke of legisla-
tive wisdom, is beyond the bounds of rea-
sonable belief. "
The Interstate act has nevertheless Sc
cured more publicity of rates, lcsSened open
rate wars equaIzed long and short haul
rates, has exercised beneficial warming or
police powers, silenced much unjust
clamor against railways, has been mutu
ally educational, and has been iudiciously
adm1n1stcred, but as sccreG dIsCrimina-
tions and open wars have continued, the
law has failed in its chief object
Hon. 4. NJ Cooley said, when chairman
of the Interstate commission: Tho law
was best observed at the outset, but in
few months it began to be noticed that
many persons in railroad service were
giving more attention To cOntriVances for
cyadiug the spirit and Intent of tine law
than they were 10 obeying IT
Any misconduct of this sort on the part
of one road Is initiated at once.
In the end the account of profits and
losses shows gains by no one IL is all
loss, and all the roads share IL. y
Ii is duo TO the law. to its administra-
tors, and 20 frank discussion 20 admit
much of this charge against the carriers as
"A whole. Nevertheless this relapse pro-
ceedcd mainly from the national refusal
20 confirm the only plan which, less than
"A year before. had enabled strong and siu-
cere carriers and others less strong in
morals or facilities TO equally observe rea-
sonable ard common rates between lead
ing points, by giving all n joint interest
and power To resist Generalization by di-
visions of tonnage or money, or both
The Interstate act followed foreign pre-
cedentS, but only up to the point which
was afterward most essential tn the full
filment of the prior requirements of the
act.
Mr. W. NJ. Acworth. author of THE
Railway and Traders (Iondon, 1851
wrote GS92): "Your Interstate commits
sion was largely modelled on our railway
commission since 1873 and the
undue preference clause of your act TO rcg-
ulate commerce is copied almost verbatim
from an English Act passed rs long ago
as lS14 "
There our law unwisely stopped. 1t
was as if consulting physicians had
adopted the discredited cures known TO
earlier science, but discarded the latest
aud best discovery for the disease treated,
and then blamed the patient for his re-
lapses; or, as If Congress failed to enact
the leading recommendations of the best
army and navy experts rs 10 matters in
which thov were skilled and which were
undeniably for the public welfare. This
primal error made other mistakes Of the
act more marked. Railway officers and
patrons otherwise disposed cannot be leg
islatcd into mutual rectitude, especially
when their gains are thereby lessened.
Even the divine law has not done that in
any calling.
The Act Was Unjust
The act did not intend to protect rail-
ways and was, therefore, unjust To
stimulate competition IL exempted
parallel water carriers. IL regarded the
railways as alone responsible Tor all the
conditions condemned and devolved their
correction upon them alone, although II
applied theoretical penalties 20 shippers
who procured preferences None Of it's
provisions were remedial, nor did 1t create
mutual interest between government and
carriers. lt held To the pcrvcrsiOn that
railway warfare Is synonymous with
peaceful business competition. IL fOstered
the fallacy that while rates must he alike
VIA one railway il was puniicly desirable
and should be made legal II they were
different upon rival railway or elsewhere,
that however different in facilities,
rival railways could obtain equal rates.
Finally, it encountered legal reyerses
which induced laxity i'm It's observance.
These failures did not proceed from the
administration of the act Here, more
than i'm foreign countries. because Of our
greater area and moro complex conditions
mere mandates against determinations
have failed. and will forever fail, because
the principle of giving the parties affected
a common interest TO obey the law was
disregarded, and because the act as it
stands does not and cannot protect up
right carriers or shippers against the en-
croachments Of others less so.
rhe Question of Rebates
Railways do not pay rebates unasked.
and the solicitations for thcm are inces-
SAINT. Government has not helped the rail
ways 20 educate forwarders To regard
freight rates as firm as postage rates.
The opportunities OF some shippers their
a,lroit tfrtfrrtrtf---f- ~ -tt-f ear
riers will conccdc. and their own sugRes-
tions that they may concentrate or divert
their shipments unless their wishes arc
conceded. all devolvo upon some COM
nanies, not only constant and strong moral
opposition Co them ard 90 the carriers
disposed To WELD 60 such persuusions, hut
also losses of business ana the protection
of their tariff paying forwartors. That
such resistance sometimes gives way -
thUrufors true, because no company ~llI
ALLOW the large aud psrn.anOut uepletlOus