New-York tribune., 1898-10-30

A DISCUSSION OF ITS RESULTS BY MR.
DEPEW.


DEPEW.
Chauncey NJ Depew. having made study OF the
decision OF the Supreme Court on traffic associa-
tions Yesterday gave his opinion the subject as
follows:
The decision OF the Supreme Court necessitates
the dissolution of the Joint Traffic Association as az
present constituted. Broadly stated. the decision
means that there shall be association among rail-
roads by which they will have any understanding or
agreement in regard to rates-ether the malhte-
nance Of rates or the prevention OF rate cutting or
shippers in favor of strong ones or against small
localities and those along the lines IN faVor OF 'he
The object Of the Joint Traffic Association was.
frst TO assist the Interstate Commerce Commission
IN TO preven secre' rate-cutting
and third prevent the fayortism TO great cities
out intermediate towns and the small business men
II is absolutely necessary ior the ra4adS o, ne ne
traffic conditions. 10 freight which Is to be moved
at the different reservoirs WHERE II Is
through the Gulf of Mexico or by the Canadian
route or by the Atlantic seaboard II will be neces-
sary Therefore that some association should exist
as statistical bureau for the purpose Of gathering
this Information and presenting 1t in frequent re-
ports to the lines which are members All that tne
railways ask is that under some form OF yolnn,ary
agreement or pooling law they may be permitted
10 arrange among themselves so tnat there snali De
uniform rates 10 everybody who ships over the Var
lines for the same service. In other worCl as
the railroads are semi-public corporations ms the
Government treats people who use the postofhce or
graph lines viz. Inform rates and the same treat
ment to eve"y one for like services. , 49,
Interstate Commerce act was in supposing that in
preventing the railroads from agreeing upon rates
for the public and preventing determinations.
Their legislation proceeded upon the thought that
there Is but line for instance, between New
York and Chicago, whereas there are eight lines
Now. il is possible for combination of capital TO
take the weak line and ship its product over that
line upon agreement much below the current
rates. The weak line NAV be In the hands OF a
,lffat aifl fl,art
it's stock upon its bonds-in other words upon
the invested capital which built it. The other lines
afford go into bankruptcy by following
this rate and so they let the weaker line nave
this traffic. while they conduct Their own traffic
upon regular and reasonable rates.
EFFECT SOON EVIDENT.
The effect of this IS very evident. The rates
which these big shippers get over this bankrupt
line enable them to market their product much
cheaper than the people who are situated upon the
other lines, who send to market from other
places than the terminus OF the bankrupt line, that
they drive them out of business. Then the anti
trust. anti-corporaton, differentiation people by
their own device have created a combination and
trust This process has been going on since
the Interstate Commerce act and the anti-pooling
provision were enforced II the process continues
the present rapid progress OF the consolidation OF
every product into the hands of one concern or a
few men Will continue. until both the producer and
the consumer In the country will have their prices
fixed by the combina.io in the various products
OF the people. II the eight lines. however were in
a position where they could protect each other and
tunites by all lines then the enterprise and energy
and natural facilities OF intermediate places. with
with the owners attending to their own affairs.
would result In a wide distribution OF independent
business IN the farmer finding many competitors
for the produce Of his farm. and the railways hay
ing thousands Of customers instead of very few
The objection to a pooling law has always been
that the railroads would combine 10 raise prices.
1t is apparently useless for the railroad man
" he % hat ne
OF the different markets. the competition Of the
ccntres at which freight is gathered make it i'm.
possible for the railways TO raise rates. But the
this danger should be obviaed by giving the Gov
ernment supervision and control over al pooling
upon these conditions: First that the pooling
contract shall not De made until It has been ap-
that IL the prove oppressive unjust In the
trafic which is subject to the pool the interstate
I'm and right the wrong. II there is any abrogate
the pool. The only objection have ever heard is
that the Government cannot be trusted Certainly
there has been nothing In the conduct OF the IN
ss sS ehSrg s"fs snch s dhaTSe is
then all government Is a failure whore great re-
care how much the Interstate Commission is
strengthened II In It's present form 1t 1t not en-
trely satisfactory.
ANXIOUS THAT IT BE STRONG.
The railroads are anxious that the Commission
should be as strong and judicial possible. The
nearer 1t approa ches the absolutely independe 1.
form OF the Supreme Court OF the United States the
better II will suit the railroads. Failing, however
I'm legislation on the subject, and supposing that
the law remains ; the Supreme Court has decided
against railroad 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 not be a
rapid process but the tendency Will be sure. The !
Weake lines will be unable TO stand the strain or
irregular rates and wholly Uncertain or unremuner,
n tive compensation which follows They VIII not |
be able raise the money which the stronger line
can to take advantage of every invention. every |
every lowering OF grade every taking out OF curves
every substitution of machinery ana AUTOMATIC
appliances which can cheaper the cost OF carrlags'
So they will be bankrupted and ultimately ap-
sorbed by the stronger lines and the business OF
the country will be In the hands OF the latter ms |
absorption and the consequent formation OF rev
gigantic corpora tons do the carrying business
OF the country would threaten another railway /
agitation whether wise or not. and long periou.
of ge 1eral disturbance OF busness-thst sort OF
disturbance which makes bad times because IN
business man has factors TO deal with IN Ieslsitt-
ton and In uncertain rates which make IL lnposs'-
bile for the wlsest head TO forecast the iutute 4.
This decision will be fortunate, doSumen' ,ha "a
Congr .ss In "A calm broad way VIII 'ake up tiie
whole question and leslsate mat the puoitts
and the railways and their investors anu snen men
employees may be fully protect "a that l"tse III |
dom for agreement may be granted 10 ,r ,"s ,nar |
wavs among themselves under the sulct suuPtu, |
United States II the Government ~ not eouaI 70
I ne task Of impartially supervising ms ous ~.
undar these conditions II had better retire IRON the
,hnwan, ~ as.ming the responsibilities Tor Cupa !
PortS Rico Hawaii or the Philippines