The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-10-31

NEW YORK, Oct. 30.-Chauncey M.
DepeW, having made a study Of the SUI
preme courts decision in the Joint
Traffic association case, expressed him
self as follows:
Inc decision necessitates the dissolution of
the Joint Traffic association as at present
constituted. Broadly stated, the decision
among railways by which they shall have
any understanding or agreement in regard to
rates either for the maintenance of rates or
the prevention of rate cutting, or the preven-
tlon OF determinations against weak shippers
IL IaVor OF strong ones, or against small To-
calltles and those along the lines in favor Of
the great terminal cities
Inc object of the Joint Traffic association
was, hrst, to assist the interstate commerce
ACT; second, to prevent secret rate cutting,
ahQ, thlrd, to prevent the favoritism to great
Shippers and to great cities which are gradu-
any Wlping out intermediate towns and the
small business men.
=, The great error of the people who framed
the interstate commerce act, is that in sup
posing that in preventing the railroad from
agreeing upon rates and having a pool they
were getting lower rates, and for the purpose
OF preventing discrimination. The legislation
Is based upon the idea that there is but one
IIHe' Tor instance, between New York and
Ch1cago, where there are eight. 1t is possible
tor weak line to take a large shipment at a
discriminating rate The weak line may be
IN the hands OF a receiver and have no ohli-
gauons to meet. The other lines cannot af-
Iofd to go into bankruptcy by following this
rate. and so they let the weaker line have this
Crahc or they conduct their own traffic upon
regular ana reasonable rates.
The effect of this is very self-evident The
rates winch these big shippers get over this
bankrupt line enable them to make their
product so much cheaper than the people who
are situated upon the other lines or who send
TO market from other places than the ter
minus OF the bankrupt line, that they drive
them out of business.
hn 10
been that the railways would combine to
raise prices. 1t is apparently useless for the
railway man to say what he knows 10 be q
fact, that the demands of the different mar
kets, the competition of the waterways and
the conditions of the different centers at
which freight is gathered, make it impossible
fer the railways to raise rates. But the rail-
ways are not only willing but anxious that
this danger be Obviated by giving the gov
eminent control and supervision over all
pooling rates. The railways ask for no pool
ing law, except on these conditions:
F1rst-That the pooling contract shall not
be made until it has been approved by the
interstate commerce commission.
Secondhand if the rates prove oppressive
or unjust in the traffic which is subject to
the pool the interstate commerce commission
shall have the right to step in and right the
wrong, if there is any wrong
The objection is raised that the govern
ment cannot be trusted. Certainly there has
been nothing done by the interstate commerce
commission since its existence which -justi-
mes Such charge. II such a charge be
true then all governments are failures when
responsibilities devolye upon them. The rail-
ways do not care how much the Interstate
commerce commission is strengthened, if in
its present form it is not entirely satisfactory
Failing, however. in legislating on the
subject, and suDposing the law remains as
the supreme court has decided it against rail-
road pooling and agreements under present
statutes, the natural tendency of the rail-
roads will be to follow the general trend of
the other business of the country. This will
be not rapid process, but the tendency will
be sure. The weaker lines will be unable
to stand the strain of irregular rates, and
wholly uncertain or unremunerative cCnse-
quences will follow. They will have to take
advantage of every appliance that will lessen
the carrying cost. They will be bankrupted
and ultimately absorbed by the stronger
lines and the business of the country will
be in the hands Of the latter. This absorp>
ton and the consequent formation of a few
gigantic corporations to do the carrying
business of the country would threaten an
other railway agitation, whether wise or
net, and long period Of general disturbance
of business.
This decision will be fortunate document,
if congress, in a calm and broad way, will
take I'D the whole question and SO legislate
that the public trust in their legislators. If
the government is not equal to the task Of
impartial supervising this business under
these conditions, it had better retire from
the thought Of assuming the responsibilities
for Cuba, Porto Rico Hawaii or the Philip