The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-04-05

In the interest of the whole people
the nation should. without interfering
with the power Of the States in the mat
tier, itself also assume power of super
vision and regulation over all corpora
tious doing an interstate business"
WHAT CONGRESS HAS DONE.
"The views thus expressed have now re-
Iceived effect by the wise, conservative
and yet far-reaching legislation enacted
by Congress at it's last session.
In its wisdom Congress enacted the very
important law providing a Department of
Commerce and Labor, and further pro
viding therein under the Secretary Of
Commerce and Labor for a Commissioner
of Corporations, charged with the duty
of supervision of ana of making intelli-
gent investigation into the organization
and conduct of corporations engaged in
Interstate commerce. His powers to eX-
pose illegal or hurtful practices and to
obtain all information needful for the
purposes Of further intelligent legislation
seem adequate; and the publicity justi-
fable and proper for public purposes is
satisfactorily guaranteed The law was
passed at the very end of the session of
Congress. Owing to the lateness of its
passage Congress was not able to provide
proper equipment for the department.
and the first few months must neces-
sarly be spent in the work of organiza-
ton, and the first Investigations must
necessarily be of a tentative character.
The satisfactory development of such a
system requires time and great labor
Those who are intrusted with the admin
istratiOn of the new law will assuredly
administer it in a spirit of absolute fair
ness and justice and of entire fearless
ness with the firm purpose not to hurt
any corporation doing a Legitimate bust
ness-on the contrary to help it-and
on the other hand. not to spare any cor
poration which may be guilty of Illegal
practices, or the methods of
which may make it a menace to the pub
lie welfare. Some substantial
good will be done in the immediate flu
ture; and as the department gets
fairly to work under the law an ever lar
ger vista for good work will be opened
along the lines indicated The enactment
of this law is one of the most significant
contributions which have been made in
our time toward the proper solution of
the problem of the relations to the peo-
pie Of the great corporations and corpor-
ate combinations.
THE RAILROAD TRUST.
But much though this is, it is only a
part of what has been done in the effort
to ascertain and correct improper trust or
monopolistic practices Some eighteen
months ago the Industrial Commission
an able and non-partsan body, reported to
! Congress the result of their investigation
of trusts and industrial combinations.
One of the most important of their con-
clusions was that determinations in
freight rates and facilities were granted
favored shippers by the railroads and
that these determinations clearly tended
toward the control of production and
prices in many fields of business by large
combinations That this conclusion was
Unsuitable was shown by the disclosures
fin the investigation of railroad methods
pursued in the fall and winter of 1901
1902 1t was then shown that certain
trunk lines had entered into unlawful
agreements as to the transportation of
food products from the West to the At
lantic seaboard, giving a few favored
shippers rates much below the tariff
charges imposed upon the smaller deal
ers and the general public. These I'M
just practices had prevailed to such an
extent and for so long a time that many
of the smaller shippers had been driven
out of business, until practically .one
buyer of grain on each railway system
had been able by his illegal advantages
to secure a monopoly on the line with
which his secret compact mas made this
monopoly enabling him to fix the price
otboth producer and consumer Many
of the great packing house concerns were
shown to be in combination with each
other and with most of the great railway
lines, whereby they enjoyed large secret
concessions in rates and thus obtained
a practical monopoly Of the fresh and
cured meat industry OF the country
These fusions, though violative of the
statute had prevailed unchecked for so
many years that they had become in
trenched in and interviewer with the
commercial life of certain large distribu-
ting localities; although this was OF
course at the expense of the vast body
of w-abiding merchants, the general
public, and particularly of unfavored To-
calities.
1T is clear that corporations created
for quasi public purposes, clothed for that
reason with the ultimate power OF the
State to take private property against
| the will of the owner. hold their corpor-
ate powers as carriers in trust for the
fairly impartial service of all the pup
lie. Favoritism in the use CT such pow
ers, unjustly enriching some and IN
Justly impoverishing others, discrlmlnat-
ing in favor of some places and against
others, is palpably violatiye OF pam
principles of justice. Such a practice
unchecked is hurtful in many ways. Con-
gress, having had it's attention drawn to
the matter, enacted most important
| anti-rebate law, which greatly strength
ems the Inter State Commerce law. rms
new law prohibits under adequate penal
ties the giving and as well the demand
ing or receiving of such preferences, and
provides the preventive remedy of in
| junction The vigorous administration OF
this law, and it will be enforced, WILL
it is hoped, afford a substantial remedy
for certain trust evils which have at
tracted public attention and have created
public unrest.