The times. [volume] (Richmond, Va.) 1890-1903, 1897-03-28
FRUITS OF POPULIsTIC LEGISLAs


Supreme Court will have upon railroad
transportation. He says:
The breaking up OF the freight and
passenger associations means general
Generalization Of all rates. and even
tually a most disastrous railroad war
When the war comes II Will be a ducs-
ton OF the survival CT the fittest. The
big roads are sure to take advantage
Of this opportunity TO crush out OF eXis-
tence their rivals. / hardly believe that
any Of the roads are looking for trouble
! but trouble will come. now that each line
/ IS on an independent basis"
There can be no doubt OF the truth OF
this Tho utter failure OF the interstate
commerce law TO oquaiize rates shows
that this can be had only by agreement
between the railroads. and they are driven
into making them by the closeness or
competition when they have no agree
ments. They find IT to their interest,
therefore, TO equalzc rates by agreement
and. when left 10 themselves. they md
methods of compelling all to live up to
the contract that they enter into-what no
legislation can ever do. But being for
hidden now TO make these pooling agree
ments. unbridled competition will be the
rule Of the day until some new procedure
for restraining it is devised. and, under
that, large shippers will get outrageous
advantages over small ones. and weak
railroads will be driven into bankruptcy.
This is the natural result OF attempts TO
control natural laws by opposing to them
human laws.
Colonel William Il. Morrison. chairman
of the Interstate Commerce Commission,
has telegraphed the following message to
the Atlanta Journal:
Washington d. c., March %.
Replying TO the Journals telegram, The
Supreme Court decision in the transmits
souri, case, applies as well TO the Joint
Traffic and to the Southern Railway and
Steamship Associations. If carriers may
combine and agree TO keep up rates on
prices Of transportation which make part
Of the price and cost of goods why enact
antitrust laws TO prevent combinations
and agreement to control production and
keep up prices?
w. r. MORRISON.
This causes us TO again ask the New
combinations between manufacturers and
merchants so ferociousy and yet con-
dennis so emphatically the decision OF tho
Supreme Court relating to railroad pools.
Why does not the logic of its attack
upon what it calls trusts" equally sustain
the decision Of the court regarding the
railroad pool?
1t allows no day to pass now without
an article condemning the decision OF the
court. We quoted yesterday from articles
on two successive days and we quote
below from an article on the third day.
as follows:
Most of the shipping world will not be
much better pleased with this decision
than the railway companies themselves.
Competition between so small a number
OF competitors as the railway lines that
connect any two commercial centres Of
the country cannot be continuously main
tained. MIR. Stephenson proved himself
as eminent in the economies as he was in
the mechanics of transportation when he
said that where combination was possible
competition was impossible. Where rates
are not maintained by agreement rate
wars destructive OF capital and most In
furious TO competing interests, are inevi-
table.
The conditions OF competition between
railways and between merchants or man
ufacturers are entirely different. The
merchant. when driven into bankruptcy
by competition. In large proportion Of
cases retires from the contest wholly, and
there is a survival OF the fittest. If he re-
mains in the field it is only on condition
of getting more for his goods than they
cost him, for he cannot indefinitely con-
tinue TO sell them for less. But the rail
way driven into the hands Of a receiver
is 4 more dangerous competitor than
ever. Its plant can be sold but cannot
be distributed among consumers into a
stock of goods. nor can ii be removed
from the locality where II is supernuous
10 the locality where there is a demand
for II. II is there and it remains there
and the receivership amounts to relieving
II practically OF all responsibility 70 it's
stockholders and its bondholders Hav-
ing been wrecked II is In the position of a
derelict, extremely likely TO wreck others
The rate wars not only destroy the profits
on capital. and so practically destroy
the capital but they involve secret agree
ments and rebates and special favors
shown 10 certain shippers TO the great
injury of others
AHN lioHibition Ol HOOlDS or the MAN.
tenance Of rates Is therefore. adverse 10
the public interests. provided that the
rates maintained are not unreasonable:
and that they are uniform is far more
important than that they should be rea-
sonable.
All of which Is most excellent argument
TO show that people should be left entirely
free to make such agreements between
themselves in respect TO what is their own
as they choose TO make. The Journal of
Commerce expresses the idea most ham
PLY when 1t says: The rate wars not
only destroy the profits on capital. and so
practically destroy the capital, but they
involve secret agreements and rebates.
and special favors shown to certain shin
pers. to the great injury OF others
All Of which Is eminently true, but why
does not unbridled competition. which is
rate wars" under another name. de.
stroy the capital" OF manufacturers 10 thu |
same extent? II undoubtedly does. and
their sole uaans sf protecting tAsusalvsa |