The times. [volume] (Richmond, Va.) 1890-1903, 1898-11-10
AIErrER Full OF SENSE.

} uists and of many well meaning men
1 who would feel affronted TO be caiied
pouplists 10 regulate the charges OF
agencies engaged in public employment
| bv acts of the legislatures. 1T Is Simply
| ,mpossible to do this so as TO get any
| thing like the best return for either the
! nubIic or those whose money is invested
in the enterprises. Every business 10
make the best return for any persons
| whether owners or public, must be con-
| ductel under the exigencies or the law
| Of supply and demand. When that law
| Is carefully needed every one concerned
! with the business will receive the high
| est attainable result. When that law is
| disregarded. no one connected with the
| business will receive the return to which
he is entitled.
We find in the last issue Of the Rail
road Gazette the following communica-
| ton that deals with the recent decision
| Of the Supreme Court of the United
States that held the Joint Traffic Assoc
| citation to be unlawful:
| TO the Editor OF the Railroad Gazette:
Throughout the opinion the Court re-
cOgnized but one kind Of competition
that Of rates That there are others IS
obvious, and they are, within certain
limits, as potent as that In rates Ihere
exists, for instance, competition by
railroads between large cities in quality
OF service. An agreement which should
limit the speed or frequency of trains
upon lines thus competing might ana
probaly would operate to diminish travel,
and SO restrain trade; but an agreement
designed to restrain the competition IN
rates, IL at the same time calculated 10
reduce the volume OF transportation,
would not find favor or be likely OF
adoption by traffic managers, the demand
being that the volume shall grow with
a healthy and continuous growth IL
competition of any kind becomes eXces~
sive-that is to say, such as 10 be con-
Quoted at non-remunerative rates-the
reaction which may ana almost assuredly
will involve the contraction of the vol
ume Of fhe business competed for, is
sure 10 come. and thereupon combination
IS likely TO ensue. Under q combination
rates as well as other elements OF COM
petition are carefully regulated, but
when such regulation Is found cooperate
TO diminish the volume of transportation
below that which at low rates with good
service shall produce the largest pront
the management Is inefficient and unsuc-
cessful and will not endure
Even II the transportation lines OF the
country should one day be absorbed into
a vast corporation. exercising powers
uncontrolled by statute, 1t would become
essential TO the greatest success of that
corporation to provide those facilities
and do its work at those rates which
would return in the aggregate the great
est constant profit. This is the limit OF
economical operation in all cases, and
II would seem that any statute which
did not recognize the principle involved
would be liable to arraignment as un-
constitutional.
But such a result could not be attain
ed by statute nor could II by mere hui
man foresight The true mean is to be
arrived at only by the tentative and in
nnitely delicate process Of adjustment
to the laws of supply and demand.
E. NJ.
This uncommonly terse, clear, logical
and convincing letter is from the pen of
Major f. T. d. Myers, OF Richmond.
Every proposition that IL contains Is as
sound as the granite of the everlasting
amended if 1t is still 10 DO contended
that the legislative authority is TO con-
troll the action Of the railroads in fixing
their charges for traffic.
The basic principle upon which all COM
mercial transactions must be founded
is that the price of the article sold is to
be all that it will bear. This is the prin-
ciple which governed a. r. Stewart when
selling his hundreds of millions worth
of dry goods; 1T is the principle which
governs the petty retailer Of five hun
dred dollars worth of clothing per an
mum. Stewart got for every yard of his
goods all he could get, and the petty re-
taller gets fer each coat and vest that
ne sells all that he can get. When that
principle is departed from in any bust
ness the business is no longer business
but a gift enterprise destined to early
failure.
Now. transportation and traffic are as
much commodities as coats and vests
and transportation for money is nothing
but the sale Of an article for a price
The same principle must govern in fixing
the charge for transporting persons or
commodities as govern in fixing the price
at which a coat or vest is sold. The
article Is to be charged all ii will bear
The Populist raises his hands in holy
horror when this proposition is stated
and asks if we would furn the poor
countryman over to the tender mercies
of a cormorant-as all railroads and
other corporations are. We answer,
Yes. because the very best possible safe
guard to the countryman is that greed
which our Populist friend Justly ascribes
TO the corporation. While charging the
countryman all II can get out of him,
the corporation charges him nevertheless
the lowest price which will pay its ex-
penses and make It o reasonable return.
for tho reason that 1t Is greedy and
wants TO make the LAT dallak possible.