The Minneapolis journal., 1901-05-11
AS SEEN BY KNAPP
Chairman of Interstate Commerce
Commission on R.R. Combines.
THEY MAY PROVE DESIRABLE
Antitrust Law to BIame-At VRri-
ance with Principles Govern
ing transportation.

New York, May 11.-An interesting
Interview on the results Of the recent
large railway combinations has been
granted by Martin A. Knapp. chairman OF
the interstate commerce commission, 10
the Journal OF Commerce.
There is no evidence that the railway COM
binations recently effected, or those said to
be in contemplation, are in conflict with
the act to regulate commerce. So Ions as
the roads remain different" that is, IN
dependent and competing, they are forbidden
10 pool their traffic or revenues, but there IS
nothing in this law to prevent their cor
porats unifcation or a community OF owner
ship in their securities.
The necessity for these combinations, or
the indueement TO form them, is partly, at
least, the result OF the decision Of the su-
preme court that the antitrust law appiles
TO railroads. That law in my opinion Is
fundamentally at variance with the principlsS
which should govern the conduct OF pubic
transportation Indeed, it is not too mucn 10
say that If the theory Of this antitrust Ia"
as declared by the supreme court should De
actually applied to every feature Of railroad
service, the result would be condition OF
transportation chaos.
Regulation of Abuses.
II is not improbable that abuses VIII re-
suit from these consultations, because OF the
degree of monopoly which they secure IN the
carrying trade and the excessive charges
which they may be in position to exact Per
sonally I think the probable or possible evils
under combinations, 70 matter how general
or extensive that combination may De- VIII
be much less serious to business Interests
and particularly to the great mass OF pro
ducers and dealers, than the actual evils
which have obtained everywhere unoer
methods Of railway competition Undoubtedly
the abuses which find origin and support IN
railway unihcation require the enactment ana
administration of such laws as will prevent
OF correct these abuses, and protect tne pup
lie from unreasonable and unjust charges
The uischiefs and in1ustices under these new
conditions will be of a different character,
but I can conceive of no outcome Whleh VIII
not disclose the need for public control Wnlen
shall be real and effective and suited TO ac-
tual requirements.
Eject on Rates.
Speaking OF the effect OF railroad con-
solidations upon rates and rate conol-
tions, Mr.. Knapp said; H..
In this respect il is conceivable that railway
interests. however closely unified, may Dc
tnimical TO public interests, either because
charges are excessive or because Of the rela-
tive rates which different localities receive
and under which the endless articles OF tra1nc
ara moved. If the general range OF rates
should continue its downward tendency II the
saving effected through the economy Oh as
soeiation is balanced by improved service
and more favorable charges, If the ADJUST
ment OF rates under perfected schemes OF
combinations satisfies the rightful demands OF
different communities and those interested III
different commodities, there will be gen
eral approval of the new policy and NIUE
disposition to prevent its continuance ana e1-
tension. On the other hand, If combinations
give power to advance railway charges ana
that power is exercised and If the general
rate adjustment is regarded in one section OF OF
another as unfair and prejudiced, there Will
certainly be resort to drastic remedies ana
q growing sentiment in favor OF government
ownership.
Combinations May Prove Desirable
On the broad ground Of national We1aIe'
these railway combinations may come 10 De
regarded as desirable If not actually neces-
of the worlds markets and that command
of the worlds markets and that command
il must be remembered, depends as mucn on
methods and rates for transportation as 1t
does upon the methods and cost OF proouc-
ton