The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1899-02-25

States. A committee of Congress at
tempting to deal with the questions OF
tariffs for instance, a question which
requires as much expert knowledge and
long training as to be q professor OF
mathematics in the best college of the
country, are wholly at sea- They can
not judge how far a rate from Chicago
to New York is dependent upon a rate
from Kansas City to New Orleans or
Galveston, or from ST. Louis to Balti-
more, or from the Northwest through
Montreal to Liverpool. But the Inter
state Commerce Commission would be
competent to decide, having only this
business and being in constant ses-
sion. Give them absolute power over
any pooling contract and then this
vexed question is largely removed from
the immature judgment of politicians
and placed in the hands of competent
tribunal. The Interstate Commerce
law was passed to prevent discrimina-
ton. Its operations indicate the mis-
takes which great, patriotic and able
body, dealing with a thousand sub
jects, can make in providing iron-clad
rules for the transportations com.
panies. Because the conditions of our
internal commerce and of our export
and import trade through various ports
and Canadian outlets are constantly
changing, this situation can only be
wisely administered by a bureau of the
Government possessing very elastic
discretionary powers.
''The Interstate Commerce law was
enacted to prevent determinations.
and yet its operation has been to create
com hin fiOpS and tr1,cfC 70 Jae+,o,- 49,
independence of the individual, to in
jure small places and small industries
beyond all other agencies combined
Competition is the remedy provided
by the Interstate Commerce law to pre-
vent determinations. The object of the
Trainer of that law was to stimulate the
normal efforts of rival lines to draw
business from each other The com
mission and the author of the law now
frankly admit that the method has in
tenslhed the evils it sought to cure.
Railway competition differs from that
known in trade. If a merchant or
manufacturer fights a rival concern.
and has the longer purse as well as
business brains, he drives his adver-
sary into bankruptcy and out of bust
ness, then buys up his stock at ruinous
prices and, having monopoly, makes
up the losses of the contest by larger
safes and increased prices But the
State fixes the passenger fares. and un-
ger the common law as to reasonable
rates puts limit upon freight charges.
Inc seml-publlc service rendered by
the railroad justifies these restrictions.
when a railroad goes into bankruptcy
the territory of which it is the sole
Quiet mas interests so great that the
courts will not permit it's sharing the
idee VI insolvency. The court runs it
regardless OF its owners and for the
pupllc convenience. The big shippers
are always seeking exclusive favors,
anu tney bargain with the weak line
lor all thelr shipments This fills that
me capacity, and the other lines
MAINTAIN rates which will give some
return TO the investors in the property.
Inc advantages possessed by these ia
Voreu Shippers on the bankrupt road
enables them in the close competition
VI common markets to defeat and alb
soro similar enterprises in other local
tues, ana that product goes into a
trust linen tfe trust or combination
cohtrolilng this article of necessity
nxes ITS own price to the producer and
consumer and distributes it's freight
Among the roads at it's own rates
In short, it becomes the master of
the railroad as We'll as the public. IT
Is the genius of our institutions to fos
ter and promote individual efforts. The
greatest and surest prosperity to the
country lies in a multitude of industries
IN many places and not all concentrate
ed in few hands and at large terminal
cities The interest of both the stock
holder and the employees of the railroad
is to have many shippers instead of one
or two, and business at as MANY local
points as possible.
From your standpoint, my friends.
distribution of patrons and places means
more trains, more cars, more men in
the shops and yards, more activity at
every station, and with better rates.
larger earnings for the betterment of
the road, the increase of its facilities
and public service and the return to
its stock and bond holders of fair div
idends and interest. No other way has
yet been devised to accomplish these
results than pooling contracts made
under the supervision and control OF
the Interstate Commerce Commission.
This supervision and control takes
away the dangers which were appre-
hended from these combinations. The
Government becomes a party Ito the
contract. The Government judges of
their reasonableness before they can be
executed. The Government keeps its
eyes and hand upon their workings and
modifies or annuls them as the public
interets require. One line runs for a
ho1 y,
country, with few industries. and has
heavy grades, many bridges across riv-
ers and is handicapped in other ways;
but that line is the life of the commu-
nifty it serves. Another line runs be-
tween the same terminal points, but on
it are large towns and thriving facto-
ries, and its prosperity has enabled it
to improve its line and equipment up
to thehighest standard, which cheap
ems the cost of operation. The better
line gets double the business and can
carry for much less cost than it's rival.
BY the present process the weaker line
builds up great shippers and gradually
impoverishes the business and places
on its line. If it could contract with
its powerful neighbor they could resist
the combination and protect the people
and each other.
Il have not time to discuss Govern
ment ownership. I have studied the
workings of this system in Europe. The
service is such as would not be tolerat-
ed in this country after our experience
The rates are double ours because the
Government finds this an easy way to
raise revenues. The employees are vir-
tually in the military service and gov