Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1902-12-20
TENDENCY TO
COMBINE
Inter State Commerce Com
mission Says the Laws
Must be Amended.
ANNUAL REPORT SUBMITTED
Rates Are Maintained by Injunc-
ton Suits, the Principle of
Which the Railroad Man
ayers Oppose.

| washington, Dec. ZU--lne lotii an
nual report of the interstate commerce
| commission has been transmitted to
congress. The preliminary income
amount for the year ending June 30,
1902, complies returns from railway
companies operating 195,3S5 miles of
line, or approximately 9S per cent OF
the entire mileage Of the United States.
| From these returns it appears that the
gross earnings of such companies for
the period named amounted to $1,711,-
| 4,200, or an average of $S761 per mile
| of line; their operating expenses aggre-
gated $1106,137, ,405, or an average of
| $5, ,661 per mile, leaving net earnings OF
| $605, ,616, 795, or So 100 per mile.
| The item of taxes, amounting proba-
| bly, to $54 100000, is not included in this
statement of operating expenses. Com
pared with the previous year the net
earnings are greater by SOME $51 100000
and the amount paid in dividends on
stock greater by nearly 100000 In
the gross earnings averaged $6,122 and
the operating expenses 81, 106 per mile
| of line. As the rates, broadly speaking,
were about the same in both years, it
| follows that the large increase in earn
ings resulted mainly from the increased
volume of traffic. These figures furnish
an indication of the great prosperity
enjoyed by the railroads.
TENDENCY TO COMBINE.
The tendency to combine continues to
be the most significant feature of rail-
way development. 1t is not open to
question that the competition between
railroad carriers which formerly pre-
vailed has been largely suppressed, or
at least brought to the condition of eff
fective restraint. The progress of con-
solidation, in one form or another, will
at no distant day confine this competi-
| tion within narrow and unimportant
| limits, because the control of most rail-
way properties will be merged in q few
individuals whose common interest
impel them to act In concert. While
this will insure, as probably nothing
else can in equal degree, the observance
of published tariffs, and so measurably
remove some Of the evils which the act
was designed to prevent, the resulting
situation involves consequences to the
public which claim the most serious
attention A law which might have
answered the purpose when competition
was relied upon to secure reasonable
rates is demonstrably inadequate when
a.. s, 1,r ~
most far-reaching and powerful combi-
nations. So great a change in condi-
tions calls for corresponding change In
the regulating statute.
THE INJUNCTION SUITS.
Investigations undertaken by the
commission in December, 1901, and Jan
uary, 1902 showed that rates upon
grain and grain products and packing
house products We're in a most demor-
allied condition. While the commission
had previously understood that these
rates We're not maintained and made
frequent attempts to obtain definite in
formation upon the subject it had until
then met with little success.
As the giving of secret rates Is a
criminal offense under the act to reg
ulate commerce, the commission, as re-
quired by that statute referred the ev-
idence taken in these proceedings to
the attorney general, and employed an
attorney familiar with the matter In
volved to assist in the criminal prose-
cution of the cases. But no convictions
have yet been obtained, nor, SO far as
the commission knows, have any In
dictments been found. This emphasiz-
es what has so often been said in the
reports Of the commission to congress
that, in the absence of suitable amend
| ment, the criminal provisions of the
| present law are practically a dead let
| ter.
Believing that no relief could be
hoped for from criminal proceedings,
the commission considered whether the
desired end might not be obtained by
another method and the course finally
adopted was to apply to the federal
courts at Kansas City and Chicago
asking that the railways implicated be
| compelled by mandatory process to OBJ
serve their published schedules. A re-
straining order or preliminary injunc-
tion was granted against the Santa Fe,
Rock Island, st. Paul. Burlington, Mis-
souri, Pacific, Alton, Chicago Great
Western, Michigan Central, Lake
Shore, Pennsylvania, Northwestern,
and Illinois Central systems in March
of 1902 and has since continued in ef-
| feet.
IMPROVED CONDITIONS.
Whether continuance of the In
functions would work continuance Of
this improved condition is not certain,
but the commission Is inclined to think
| it would to a considerable extent, not
| only because departure from the pub
lished rate can be more easily and sum
marily dealt with in injunction proceed
ings than by criminal indictment, but
also because of changes in the owner
ship of railway properties and the les
son which past experience has taught
railway operators. The right to pros
ceed in this manner to restrain viola-
Continued on Fourth Par.