The herald., 1897-03-28
A RIGHTEOUS DECISION

It is not surprising that the decision Of
the supreme court of the United States.
declaring railway traffic associations
violation of the law, should shake rail-
way circles to their very center, for the
ruling of the court overthrows and ami
hilates the hitherto basic principle Of
conducting the railway transportation
facilities of the country. Ever since the
first line of railway was paralleled by
another road, the custom has been for
the lines in competition to meet at stated
times and agree what the traffic should
pay, but the traffic was never asked
what 1t could afford to pay. These
agreements between the railways pro-
vided for a division of the traffic. each
line in interest receiving in proportion to
its geographical and physical strength.
Some have wondered why strong and
direct line would agree to a division Of
the traffic with a weak and circuitous
road. 1t is because the weak line would
not maintain rates as high as they would
be had the direct line no competition If
1t were not allotted fair percentage of
all competitive business Agreements
have been made which pooled all the
earnings on competitive traffic. But
whether the agreement was for money
or tonnage division, or merely for the
maintenance Of the agreed traffic tariffs,
the interests Of the lines to the compact
were looked after by joint agent or
commissioner. Under no circumstances,
however, were shippers and receivers OF
freight permitted to have a voice in
framing rate schedules nor in classifying
shipments. The public was the goose
and the question with the roads was how
to pluck him most skillfully.
The decision of the supreme court de-
clares all such agreements and asso-
Citations to be unlawful and the effect
of the decision will be to make every
railway not only an Independent and
separate common carrier from all others,
but will make 1t competitor of all other
carriers reaching common points directly
or by connecting roads. AS will be seen
very readily, the decision will revolution
ize the methods. as we'll as the rate
schedules, of the entire railway system
of the country, in so far as business CEN
ters that may be reached by two or more
routes are concerned. For the first time
In the history of rail transportation in
this country, the shipper has rights
which the common carriers are not only
bound to respect, but which they will
60 out Of their way to respect. For the
FIRST time shippers will have the blesse
privilege Of hunting for bargains in
rates, and In this connection it may be
remarked that every railway will main
tain rate bargain counter.
Presumably the decision is in har-
mony with the letter and spirit of the
laws and the constitution of the nation,
and 1t certainly has the hearty approval
of common business sense everywhere
A common carrier is a seller of transpor-
tation facilities, and It is all the more a
conspiracy against the public when two
or more carriers combine to fleece the
public. because the public grants them
extraordinary concessions, such as the
right Of eminent domain and the con-
demnation Of private property to their
own use. AS common law principle, as
well as a commen business sense propo-
sition, this decision Of the supreme court
is,r therefore, ethically, commercially
and politically right. Any enterprise
whose existence is derived from fran
chise granted by the public in its gov
ernmental capacity must necessarily bt
operated and conducted for the public
good; and 1t follows. too, that whatever
IL for the public's service must be sub
ject to the public's supervision and reg
ulation. II that be true, the decision ii