New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-03-26
pressure not only his personal balance. but Ms
official dignity.
THE RAILROAD SITUATION.


Isn't II inst possIble that the railroad man.
ayers who are abandoning their traffic assocla
lions and running away in panic because OF
rho Spnreme Court decision against traffic agree
ments. are losing their heads and doing them
solves great damage in the predictions of ruin
Gus rate wars in which they are indulGing? why
sbouId there he any rate wars? Who but the
railroad managers themselves has the power to
initiate them? IT. az some Of them are saying
rate wars are imminent, the effect OF which Will
be to impair seriously If not utterly destroy the
value Of railroad stocks. whose fault VIII 1t ne:
Whom shall the stockholders and Landowners
of the railroads ruined by rate wars hold re-
sponsible for the policies which result in sucn
waste and loss? Rate wars must start some
where They cannot in the nature of things. be
started from the outside. They must he ordered
by officials chosen by boards of directors, who
are themselves elected by the stockholders. The
responsibility Is remote, perhaps. but yet not
out Of reach Of the stockholders. whose property
interests are at stake and whose profits are de-
stroved If their agents conduct their business
Mt a loss and destroy the value of their property
by cutthroat rates and ruinous competition,
have they anybody but themselves to blame FOR
the selection of such agents? And Is there not
always a remedy al hand in their removal be-
fore they have made utter shlpwreck OF the
properties they mismanage:
Suppose we consider for a moment what has
actually happened; what Is the real effect upon
railroads and their management of this supreme
Court decision Obviously the Court has not
ordered any lowering of rates. Nor Is 1t neces-
sarv that rates should he lowered or cut on ac
count of it. Briefly stated. its effect Is simply
10 enioin railroad corporations from forming as
sociations in the nature Of trusts for controlling
and maintaining traffic rates The traffic assoc
ations which have grown up within the last few
veors have been held together and made cifec
tive by agreements mutually entered into by the
component corporations, infractons of which
were made punishable by pecunlary amercc-
ment. The full text of the court decision has
not vet been made public but If we are not mis-
tatnn Il was mainly upon this feature that the
Judgment was rendered that the associations
were in the nature of trusts ana consequently
covered BY the Antitrust law. If we are cor
rect in this view, there is nothing in 1t that need
brighten the traffic associations into hasty dis
bandment and dissolution and certainly noun
ing that should bring on a runous rate war;
Because under this decision the railroad man
ayers are enioined from restraining each other
throat. It ought not 10 follow that they VIII
immediately 60 at one another to the destruc
tion of their own business. But isn't that the
obvious inference from the doleful predictions
in which they indulge?
To speak plainly and be entirely frank, Is 1t
not fact that railroad managers as class dis
trust one another TO such an extent that they
cannot make mutual agreements that VIII nave
any force or be considered binding except they
be enforceable by fines or penalties! And IS no'
that the real reason why so many or them loon
for rujnous rate wars TO follow this decision!
If this be the case, the conclusion Is lrreSis'ipie
that the remedy for these anticipated ills is WITH
in eo<v reach Of the owners and managers Oh
the railroads themselves. These managers are
maid large salaries. What for! Is 1t FOR the
sort Of talent that Is required for sharp prac
,ices and smart tricks: for cunning devices to
outwit councillors evade law and in the end
imDoyerish stockholders? The unwrtten history
of some of our great corporations would GER
tonlv furnish the basis for such a suspicion
And II this is the case 1t is time Tor the man
ayers of these great corporations to consider
whether or not substantial relief from adverse
court decisions and unfriendly legislation is at
tanable by their own concerted and united
action. Simple and straightforward honesty in
their dealings with one another and with the
nublic would do more than anything else 10 clear
IN the whole situation and avert what they con
slider impending dangers TO the railroad proper
H. ,t.v-