The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-06-09

Mr.. Midgley. who was chairman of the
Southwestern Railway Association for years
before 1t was dissolved by the decision OF
the Supreme Court in April. 1895. has
tice in the Forum entitled "a New De-
parture in Railroad Management" in which
he declares at the outset that the decree Of
the Supreme Court declaring the pooling
system to be in violation of law was IAN
epoch-making decision" If the COM
panies had been permitted to carry out
their joint traffic scheme all would have
been well so far az the railroads were con-
cerned. The court would not permit this so
Mr.. Midgiey. as one Of the best informed
men regarding the purposes and methods
Of the more important lines. declares that
something else must be done-for what pur-
pose? He does not say it in so many words.
but between the lines one may read that
something must be done to prevent the
managers of the competing lines from de-
stroying each other by rate cutting.
There is no doubt that the capacity of the
trunk lines for business is much I'm excess
of the business TO be done. This is not so
much because there more lines than are
needed as that the lines. by improving
their tracks and using more powerful en-
gines and larger cars, can do much more
business than twenty years ago. 1t would
seem that a combination which was de-
signed to handle the great bulk Of the
transportation of the country without en-
HANGING the cost over that of previous
years Is the least Objectionable form of the
trust unless it should involve discrimina-
ton between shippers. 1t was simply
combination to take from competing rail-
roads the temptation to cut rates. The
court has found otherwise. and, because it
has, there Is reason to believe that more
Objectionable trusts. which advance prices,
close factories and earn dividends on water
stock will fare i'll when they reach the court
of last resort.
Mr.. Midgley seems disposed to complain
that the general public and lawmakers have
little interest in the welfare of the railroads
of the country, which employ more labor
and have more capital invested than any
other great industry. There is something
in this complaint. The people at large do
not realize the advantage derived from
railroads. Having them so long they regard
their existence as a natural condition. so
they do not consider how largely the public
depends upon them and how valueless prop
erty would be without them. Nevertheless,
the tacit confession of Mr.. Midgley of the
inability of the managers of railroads TO be
kept from running each other by cutting
rates is the most striking feature of his ar
not only cut each others throats when they
come in competition, but the larger ship
pers can obtain better rates and the non
competing points must pay more to make
good the losses Of rate-cutting at competing
points. For the public as well the rail-
roads Mr.. Midgley argues that Congress
should do something. He would have Con-
gress make the Interstate-commerce Com
mission a supervisory arm of the govern
ment Ito correct the inequalities in charges
and service, and TO insure these being made
reasonable, uniform and in no respect I'M
duly preferential" This plan is advocated
by the most advanced railroad men. Such
railroad men ARE unable to discover why
the anomaly should continue of allowing
certain shippers TO dictate what they will
pay for transportation of their commodities.
and. at the same time, refusing to a duly
constituted branch of the national govern
ment the necessary authority to enable it to
intervene between the public and the rail-
roads. at the instance and for the protec-
ton Of either the people or the carriers"
One of the schemes proposed by the
writer and considered by railroad managers
in the event that Congress does not give
the Interstate-commerce Commission great
er power is for competing railroads to
adopt and promulgate the same tariffs,
right which each company has. Another
plan which has been suggested is for the
general direction of the railroads in a large
section of country to pass into the hands of
bankers representing those who own the Sc
curities, who, through their agents. could
manage the different properties as one cor
poration. Another plan is that of the late
Jay Gould, which is to form a company
which shall lease the passenger and freight
traffic OF number of railroads in the same
territory-just as the sleeping car and ex-
press traffic is leased to separate COM
panies to manage.
1t seems that those who advocate gov
eminent control should see in a law which
would give the Interstate-commerce Com
mission the power to adjust rates a step to-
ward the theory they advocate. Indeed,
would 1t not be much better to have the
government directly control through its
agents than to own and operate?