The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-02-11

show that the Uncn Pacific Railroad had
granted to the Standard Oil Company
such large sums in rebates as to make
its entire territory Inaccessible TO other
shippers.
lie quotes from the auditors of the
Pennsylvania Railroad to show their
company gave discriminating rates to the
STANDARD Oil Company amounting against
single rival company in one year to
s2i, Zoo. Further proof of this is given
by Mr.. Phillips In the quoted testimony
OF the receivers CT the Baltimore and
Ohio Railroad. of NJ. f. Ingalls,, of the
big -Four" and the Chesapeake and Ohio
railroads. and OF A. B. Stickney. president
of the Chicago and Great Western Rail-
read.
Mr. Phillips continues:
The evidence show that il is not safe
10 trust private combinations with the
public wealth 1t may req souaby be ap-
7yehended that the more recent COM
llnations will follow the practices of the
older trusts The United states Steel
Corporation exceeds all these, in that 1T
Is CON- animation Of combinations. The
stock of the original corporations was
warered when they were organized ana
again watered when they entered the
giant combination. 1t Is estimated oy
practical men that the actual investment
in is plants and transportation equip
nent does not exceed ne.third of its
actual capitalization of 81 400 600, 600 upon
which it's profits in the first nine months
of its existence were ss:,77929S.
"Ttis corporation has secured not only
so rer cent of the iron ore OF tie Lake
Superior region and practically ali The
coke of the Connellsvilln field. but also
lsthc rail and water transportation which
Lyines it's raw material together and
upcn which its competitor largely depend
for their supplies 1t is thus putting it
self in position to dictate prices upon
.lajarial. upon transportation and upon
the finished products. les board OF direc-
tors includes a number of rlen who have
lo'.g had experience in managing the af
fairs Of the older trusts. and there is
every reason to believe, as is shown by its
enormous profits on it's actual investment
be the same as that of those which have
preceded it.
'In another most important industry
that of meat packing-there are practiced
at the present time the same methods as
those which have built up the more
dangerous monopolies in the pat
Mr.. Phillips quotes testimony given by
Paul Morton Of the Atchison Road; Mr.
Mitchell OF the Michigan Central, and
Mr., McCabc, of the Pennsylvania lines
west of Pittsburg, to show that the rail
roads do not keep any books showing the
rebates paid to favored shippers. This
was done because the presence of books
would be regarded as evidence of the
violation of the Interstate law.
Mr.. Phillips says:
I'm the face of testimony like the fore
going. it is not surprising that the peo-
pie are widely demanding remedial leg
islation on this subject. Railroad cor
porations have received from the public
hundreds Of millions OF dollars. for which
they have given little consideration. TIE
Government, in order to develop the
country, gave railroads enormous tracts
OF land which in time became very val
liable. They aggregated. according to
the Government Land Grant Office at
Washington about 1877 900. 600 acres more
than the entire area of New England,
New York. f'epnsylvania. Ohio. Indiana
and Illinois. In addition the National
Government gave vast subsidies in money
or in bonds. The States were also gen
erous in giving TO the roads. Cities.
towns and counties also gave enormous
sums, either by direct subsidies, by gifts
Of bonds or by subscriptions to stock.
Finally the road received the most i'm
portant privilege OF exercising the right
OF eminent domain.
Many OF the roads have gone into the
hands of receivers. out of which they
have come with these vast debts TO the
public Cancelled. yet it has been fully
proved that they have made most unjust
determinations in favor OF the few at
the expense Of the many. They even
taxed the people for the bounties which
they had received from them.
If the main provisions OF the Cullon
bill, which were indorsed by the Inter
sState Commerce Commission and boards
of trade. demanded in petition by a great
body of the people and which arc recon-
mended by this commission elsewhere.
are not accepted. then the alternative IL
Government ownership. If the railroads
refuse 10 accent the conditions of just
regulation, which legislative authority
has an undoubted right to impose. relief
should be had from the exactions whic;l
are new intelcrable.''
Mr.. Phillips. piles up evidence from the
sworn TESTIMONY of trust officials 10
show that many ofs'the so-called trusts
without hindrance from State or Natiou-
al authorities are engaged in destruc-
tive competition 10 crush out small rivals
In this way strong established industry
uses its power TO destroy rival instead
OF meeting il fair and reducing price
everywhere equally.
1t Is often urged" says Mr.. Phillips
that the strongest defense Of protec-
tive tariff is that it enables promising
but infant industry 10 get q start. There
is certainly greater need for defending
the beginnings OF competition from the
ruthless attacks of giant combinations il
our own country than for similar defense
against foreign combinations no greater