The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-03-25
Sorry Plight of the Railroads.

| sorry Plight OF the Railroads.
The decision of the United States su-
preme court to the effect that all traffic
associations exist in violation of the anti
| trust law, and that such associations are
unlawful, leaves the railroads in a very
unfortunate plight The traffic associa-
tons are closing up their affairs and going
out Of existence, and the railroads are free
to cut rates, grant rebates or do any other
| thing they please. 1t is true that the in
terstate commerce law makes It an offense
for them to cut rates or allow rebates, but
there are roads which pay no attention to
the interstate commerce law SO far as
rate cutting is concerned, and in order to
save themselves from ruin other roads are
compelled to follow their example.
A very small reduction in rates controls
traffic. and the temptation to make small
reductions in order to get business is so
great that few railroads resist 1t. AS soon
as il is certain that rate cutting has be-
gun there will be signs Of a rate war, and
rate wars are disastrous to both railroads
and shippers.
The people want solvent railroads and
fair and stable rates. They cannot have
any one of these things under the existing
condition of affairs. Rate cutting means
the wrecking of all but the strongest rail-
roads, and the destruction of many bust
ness interests. The big shippers can come
very near making their own rates. Their
patronage is SO desirable that the railroads
will make TO them almost any concessions
they demand. The smaller shippers have
to accept the rates that railroads are will
ing to grant them, and, consequently, they
are eventually ruined.
What will happen if there is free compe-
tition among the railroads? This will hap
pen. All the weaker railroads will be
wrecked, and will become parts OF the
stronger ones. and the vast business in
terests of the country-those interests,
which are dependant upon transportation
rates-will pass into few hands. A few
great monopoles will practically control
the entire business of the country.
What is the remedy? AS far as can now
be seen the remedy is pooling lava law
which would permit competing railroads to
pool their earnings. With such law,
and commissions to fix rates, the railroads
would be able to earn reasonable profits
and the public would have the benefit of
stable and fair rates. The great monopo-
lies would not be able to ship their pro-
ducts for less than the smaller business in
terests, and, hence, could not ruin these
smaller interests.
win congress enact a pooling law? 1t
is doubtful. The great trusts don't want
such law. 1t would put an end to one
great source of their profits. namely, con
cessions in freight rates. And there is
a feeling among the people that a pooling
law would be against the public interests.
AS a matter of fact, such a law would be
in the interest of the masses of the people.
1t is probable that four-fifths of the mem
bers of congress believe that a pooling
law with a commission to fix rates would
be the best thing for the people, as well as
for the railroads, but they lack the cour-
age to get in accordance with their judg-
ment.
1t may be asked why railroads cut rates
when they know that rate cutting means
their own ruin. and the DISCRIMINATION Of
the business Of their patrons. The answer
is that if one does it they must all do it,
or else lose all their business, and there is
always one or more that win begin rate
cutting.
1t really looks as If the time had come
for congress to take hold of this railroad
problem and solve it. The pooling bill
which is regarded as a solution. has the
approval of the interstate commerce COM
mission,