The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-01-06
MORE LAWS ARE NEEDED
INTERSTATE COMMERCE. COMMITS
SION COMPLAINS OF ITS
LIMITED POWERS
FOURTEENTH ANNUAL REPORT
Stress Is Laid ON the Importance
of the Ever-IncreasinE Com
binatiOns and Con-
solicitations.


brief synopsis:
Is The subject of further legislation
amending the act to regulate commerce
has been fully. discussed in previous re-
ports to the congress, and recommended
lions both general and specific have been
repeatedly made The reasons for urg-
ing these amendments have been care,
fully explained, and repetition of the ar
gument at this time can hardly be eX-
pected. While the attitude of the COM
mission has been misunderstood by some
and misrepresented by others, the views
heretofore officially expressed are believed
to be justified alike by experience and re-
Election. They are confirmed by later and
current observation. knowledge of pres
ent conditions and tendencies increases
rather than lessons the necessity for leg
islative action upon the lines already in
dictated, and in such other directions as
will furnish an adequate and workable
statute for the regulation of commerce
among the several states
One aspect of the situation, however is
specially referred to. The commission
says it must be apparent to the though
full mind that equal charges for equal
service cannot be secured without some
restraint upon the competitive action of
independent lines and refers to classif-
cation, interchange of cars, switching
service, storage and terminal charges,
denurrage, car service rules, and other
tioNfStS DIS IldNIIlS DSSH sOOhe0
upon With. favor as operating 20 Uublic
advantage. Uniform classification, for ex-
ample, is regarded so desirable that the
commission has recommended and urged
Its adoption by voluntary action, or, that
failing, by compulsory legislation, The
act to regulate commerce seems to favor
associated action by competing roads for
purposes of this kind. True it prohibits
poong-that is, the actual division of
competitive traffic or the earnings de-
hAr~ afr
is believed by many to be practically in
consistent with uniform CHANGES to all
shippers, and the fair adjustment of rate
between different communities and differ
ent articles of traffic.
Whatever view may be held as to the
degree of incompatibility between the pro-
hibtion of pooling and the other proyi-
slonS of the act, it was generally under
STOOD, after the act was passed that mu
luaI agreements respecting the matters
above mentioned, not involving the divi-
sion of tonnage or revenue were in no re-
spect made unlawful by the act, but We're
regarded rather as aids to its proper OBJ
sefVahce Accordingly, numerous asso-
cations were formed and many features
OF the railroad service more or less sub
9ected to common control by carriers
OIheFwiSe in actual competition The ten
dency and intended results of these ar
Iangements were to remove the practices
ana charges included in their terms from
the field of competition.
These conditions are said to be mate
rally changed, in their legal aspects at
least by the passage of the antitrust
law ana the Interpretation which that
law has received. The prohibition against
railway association is no longer limited
10 The pooling of competitive traffic or
the revenue therefrom, but extends to
- every form of combination which direct
=. ~. y:tesefalns competitive freedom. While
inns Gees not mean that every such
agreement violates the antitrust law il
does mean that all such ENGAGEMENTS
as actually restrict competition are void
from their inception and subject those
VINO make them, or who connive in ef
1orts to continue them, to the hazard of
criminal prosecution
II Is evident that railroad managers
generally have made no attemnt to Cor
form their practices to the spirit of this
law They may keep within its letter
and succeed in avoiding it's penalties
put they claim that they are virtually
CoInpeLed TO counteract it's aim and
eVade its observance Thus if hannens
That some of the most important and
usetuI incidents of railway service are
maintained by methods which are be-
HeNed TO be lnharmonouS with if NOT In
actual violation of, a federal statute
1hs' Is more than the question of pooling
contracts between rival carriers-it is the
VI sum agreements as relate To
CIasslhcauon, terminal charges. and the
Ake-concerning which uniformity Ger
fanny, ana stability are of manifest ben
eIt ana convenience to the public
Cnaer the conditions now existing it is
inevitable that frequent determinations
Snouid occur and endless acts of injustice
be committed. Theoretically it is nos
slble for each road to observe its puh-
lisheu schedules in every particular, but
thls IN many cases must be done if done
at all, only at the loss of needed traffic.
unless all rival roads with equal strict
ness an honesty conform in like manner
10 their published rates. The idea of
public regulation implies certain stand
arus OF correct conduct to which all car
TlefS snail conform. 1t also IMPLIES soma
measure of supervision and control over
those subject to its requirements to the
end that these standards NAV he OH
served and practices made to conform
thereto. This, without doubt. is incon-
slstent' to some degree at least, with
actual and canstant competition as that
term Is commonly understood
RAILWAY COMBINATIONS
One of the striking features of raoan+
times in the industrial world has heen
the tendency to combine for the purpose
OF limiting or eliminating competifion
In no branch of industry, probably. is
me mducement to form combinations of
tHiS SQfl greater nor the advantages to
be hoped for from them when formed
more certain, than in railway operations
first-No competition is so destructive
as that between railways. In most kinds
OF business competition stops with tho
bankruptcy of one or more of the cono-
peltors, but here the weak, roundabout
bankrupt line can often infiict as serious
damage as could a prosperous rival.
Second-The nature of the business rem
derS. possible large profits from sucI,
combinations without attracting undue
attention. Transportation is analogous
to tax imposed in varying degrees up-
on almost all commodities. With i'm
portant exceptions moderate advances in
rates, if equally distributed, would NOT
be especially noticed by the Public as
whole. But every such advance adds
TO the net revenues of the railway, and
a very slight increase in all rates. If it
should be permanently maintained, would
enhance enormously the value of railway
securities.
Third-No kind of property lends itself
80 readily to the permanent formation
of such combinations as railroad prom
erty. He who combines all the factories
in the United States of a certain kind
may lose in a short time the benefit of
that monopoly by the erection Of other
factories of the same kind; but a rnonop-
oily created by the combination Of all the
railways now controlling any consider
able area of the United States is reason
ably certain to continue for years to
come.
Fourth-In addition to these induce
ments. the statutes of the land operate
to produce the same result Many years
ago the railway managers found it
necessary in what they believed to be
legitimate self-protection, to form pooling
- L.