The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-10-31
Bankruptcy Staring the Big Trunk
Lines in the Face without Some
Kind of u Combine.
CAN GOVERNMENT BE TRUSTED?
If NOT 1T SHOULD GO OUT OF THE
EXPANSION BUSINESS.
The Great Railroad President Lets
Fall Some Observations That
VIII Cause Discussion.


NEW YORK, Oct. 30-Chauncey M. De-
pew, having made a study of the decision
of the Supreme Court on traffic associations,
gives his opinion on the subject as follows:
THE decision of the Supreme Court neces-
states the dissolution of the Joint Traffic
Association as at present constituted
Broadly stated, the decision means that
there shall be no association among rail-
roads by which they will have any under
standing or agreement in regard to rates,
either the maintenance of rates or the pre-
vention of rate cutting, or the prevention of
determinations against weak shippers in
favor of strong ones, or against small local
tiles and those along the lines in favor of
the great terminal cities.
1.-THE object of the Joint Traffic Associa-
ton was, first, to assist the interstate-com-
merce act; second, to prevent secret rate
cutting, and third, to prevent the favoritism
to great cities and to great shippers, which
are gradually wiping out intermediate towns
and the small business men. 1t is absolutely
necessary for the railroads of the country
to know the movement of traffic and traffic
conditions as to freight which is to be
moved at the different reservoirs where it is
concentrated. 1t is also necessary that they
know whether and why this freight is Sc
curing an outlet, if for export, through the
Gulf of Mexico, or by the Canadian route
or by the Atlantic seaboard.
1T will be necessary, therefore, that some
association should exist as a statistical bu-
reau for the purpose of gathering this in
formation and presenting It in trequert re-
ports to the lines which are members. All
that the railways ask Is that under some
form of voluntary AGREEMENT or pooling
law, they may be permitted to arrange
among themselves so that there shall be
uniform rates to everybody who ships over
the various lines for the same service In
other words, as the railroads are semi
public corporations, then the public should
be treated on lines the same as the govern
ment treats people who use the postoffice,
or the same as people are treated who use
the telegraph lines, viz, uniform rates and
the same treatment to every one for like
service.
ERROR OF LAWMAKERS.
'The great error of the people who framed
the Interstate commerce act is in supposing
that in preventing the railroads from agree
ing on rates and having pool they were
getting lower rates for the purpose and pre-
venting determinations Their legislation
proceeded on the thought that there is but
one line, for instance, between New York
and Chicago, whereas there are eight lines.
Now, it is possible for combination of capi-
tai to take the weak line and ship its prod
uct over that line on an agreement much
below the current rates. The weak line
may be in the hands of a receiver and have
no obligations to pay either on it's stock or
it's bonds--in other words, on the invested
xxyhi oh -ba nth har lines "a n
not afford to go into bankruptcy by follow
ing this rate, and so they let the weaker
line have this traffic, they conduct their
own traffic on regular and reasonable rates.
1.-The effect of this is very soon evident
The rates which these big shippers get over
this bankrupt line enable them to make
their product so much cheaper than the
people who are situated on the other lines
or who send to market from other places
than the terminus of the bankrupt lne
that they drive them out of business. Then
the antitrust, anti-corporation, anti-com-
bination people by their own device have
created a combination and q trust. This
process has been going on ever since the in
terstate-commerce act and the anti-pooling
provision were enforced. If the process
continues the present rapid progress Of the
consolida ton of every product into the
hands of one concern or few men will
continue, until both the producer and the
consumer in the country will have their
prices fixed by the combination in the vari-
Gus products of the people. If the eight
lines however, were in a position where
they could protect each other and the pub
lie in giving equal rates and equal oppor-
tunities by all lines then the enterprise and
energy and natural facilities of intermediate
places, with smaller expense and less capi-
tai in their business. with the owners at
tending to their own affairs, would result
in a wide distribution of Independent busi-
ness, in the farmer finding many competi-
tors for the produce of his farm and the
railways having thousands of customers in
stead of very few.
"The objection to a pooling law has al
ways been that the railways would combine
to raise prices. 1t is apparently useless for
the railroad man to say what he knows to
be a fact, that the demands of the different
markets, the competition of the waterways
and the conditions of the different centers
at which freight is gathered make it i'm
possible for the railways to raise rates.
But the railways are not only willing, but
anxious that this danger should be obviated
by giving the government supervision and
control over all pooling rates. The rail-
roads ask for no pooling law except on
these conditions
First. that the pooling contract shall
rot be made until it has been approved by
the interstate-commerce commission: and.
Second. that if the rates prove oppres-
sive or unjust in the traffic which is subject
to the pool. the interstate commerce COM
mission shall have the right TO step in and
right the wrong. If there be any. or abro-
gate the POOL
'The only objection have ever heard is
that the government cannot be trusted,