The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-10-31
DEPEW'S VIEW OF DECISION.
POINTS OUT THE WEAK POINTS OF
INTERSTATE COMMERCE. ACT.

AEust Eeoplc VIII lhen have ire /
ated TFust-RaiIrOads Want
Pools Supervised by Government.
New York, Oct 3O.-Chauncey NJ. De-
pew having made study of the decision
"f the Supreme Court on traffic associa-
tions, sives his opinion on the subject as
follows:
The decision of the Supreme Court me-
eessitates the dissolution of the Joint lraf-
tc Association as at present constituted.
Broadly stated the decision means that,
there shall be no association among rall-
roads by which they win have any un-
derstanding or agreement in regard to
rates, either the maintenance of rates or
the prevention OF rate cutting, or the
prevention of discrimination against weak
shippers, against strong ones, or against
small localities and those along the lines
in favor of the great terminal cities.
"The object of the Joint Traffic Asso-
citation was, first, to assist the Interstate
Commerce Commission in enforcing the
provisions of the interstate commerce act;
second, to prevent secret rate cutting, and,
third TO prevent the favorltism to great
cities and TO great shippers, which are
gradually wiping out intermediate towns
ana the small business men.
"It Is absolutely necessary for the rail-
roads OF The country to know the move
ment of traffic and traffic conditions as 10
freight which is to be moved at the differ
Ont reservoirs where it is concentrated.
1t is also necessary that they know
whether and why this freight Is securing
an outlet, If for export. through the Gulf
Of Mexico or by the Canadian route or by
the Atlantic seaboard.
1t viii be necessary therefore, that some
association should exist as a statistical
bureau for the purpose of gathering this
information and presenting 1t In frequent
reports 10 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-publie corporations, then the pub
Tic should be treated upon Zines the same
as the government treats people who use
the postoiiice, or the same as people are
treated who use the telegraph lines, viz
uniform rates at the same treatment to
every one for like service.
The great error OF the people who
! framed the interstate commerce act is in
! supposing that In preventing the railroads
from agreeing upon rates and having a
! pool, they were getting lower rates for
| the purpose and preventing dserimina-
tions. Their legislation proceeded upon
| the thought that there is but one line
for instance, between New York and Chi
cago, whereas there are eight lines. Now
| 1t Is possible for a combination Of capital
to take the weak line and ship its product
| over that line upon an agreement much
| below the current rates. The weak line
! may be in the hands Of a receiver, and
| have no obligations 10 pay either upon its
| stock or upon its bonds--in other words,
| upon the invested capital which built H.
| The other lines cannot afford to go into
/ bankruptcy by following this right, so
| they let the weaker line have this traf-
| fic, or they conduct their own traffic upon
regular and reasonable rates
| ''The effect of this is very soon evil
| dent. 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 upon
Hthe other lines, or who send to market
| from other places than the terminus OF
| the bankrupt lire, that they drive them
out of business. Then the antitrust anti
! COfDDIdliOfi, dJtli-tOinDiubtiOn people. Dy
their own device, have created a combina-
! tion and a trust. This process has been
going on ever since the interstate COM
! merce act and the anti-pooiiug provision
were enforced. If the process continues
the present rigid progress of the consoll-
dation 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 various products Of the
| people. If the eight lines however, were
! in a position where they could protect
! each other and the public in giving equal
rates and equal opportunities by all lines
then the enterprise and energy and ma
! tional facilities OF intermediate places
with smaller expenses and less capital in
| their business, with the owners attending
to their own affairs, would result in
wide distribution of independent business,
| In the farmer finding many competitors
| for the product of his farm, and the rail-
ways having thousands Of customers in
1 stead of a very few
"The objection to pooling law has all
ways been that The railways would COM
| bine to raise prices. 1t Is apparently USE
| less 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
centers at which freight Is gathered make
! IL Impossible Tor the faHWdyS 10 raise
rates. But the railways are not only will
| ling but anxious that this danger should
be obvlated by giving the government su-
4 peryigon and control over all pooling ra les.
/ The railroads ask for no pooling law ex-
| cept upon these conditions: First, that the
| pooling contract shall not be made until
| il he's been approved by the Interstate
! Commerce Commission; and, second, that
| If the rates prove oppressive
or unjust In the traffic which
IS subject 10 the pool the Interstate Com
nlerce Commission shall have the right TO
| step in and right the wrong, IL there Is
| any or abrogate the pool The only OBJ
\ lection have ever heard is that the gov
| ernment cannot be trusted. Certainly
| there has been nothing in the conduct Of
| the Interstate Commerce Commission since
| It's formation which justifes such a
| charge II such a charge is true, then
! au government Is a failure where great
| responsibilities deyoive upon Il. The rail-
! roads 90 not care how much the inter-
/ state commerce law IS strengthened. IL in
| its present form il is not entirely satisfac-