The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1904-12-08
Plea of the Three Governors,
New York World.


The Governors of three great West
ern States which furnished 100000
Republican plurality in the recent
election and which will send thirty
Republican representatives to the
new Congress unite in seeking Presi-
dent ROOsevelt's s influence in favor of
legislation empowering the Inter-
state Commerce Commission to fix
railroad freight rates upon interstate
commerce
There is throughout the country a
growing sentiment in favor of such
course, as well as in favor of State
laws creating local rate tecommissions
Rate regulation has been for years
urgently sought by Western farmers,
who have been helpless to prevent
railroads from charging "all the
traffic will bear" and the Eastern
consumer should have quite as deep
all interest in the matter as they
Special pleaders for the railways
have unmasked their batteries of
abuse upon the proposition as so
clallstlc or "cOntiscatOry. SO
much elOquence is unnecessary. That
matter was threshed out in debate
twenty or thirty years ago and de-
clded i'll favor OF rate regulation. 1t
was the purpose of the Interstate
Commerce law, as it's trainers have
repeatedly testified. that the com
mission should fix the rates. and it
did in fact SO fix them for ten years;
until the Supreme Court decided that
the commission was in that respect
exceeding its legal powers under the
law which founded it.
The passage of the Cooper act or OF
some similar measure would there
fore be taking no step upon which
the people had not long ago resolved
and Congress acted. And there are
now reasons for such legislation,
| which did not exist when the Inter-
state law was framed, in the recent
alarming attempts at forming what
would be. SO far rs the entire North
west is concerned, the universal rail
way trust. Gov. Van SAINT, of Min
nesOta, who instigated the proceed
ings in that State against the North
ern Securities merger, well expresses
| the danger:
There will never be any more open
mergers, great holding companies to be
the receptacle of the stock of the various
systems. The Supreme Court settled
that for all time. But it does not pre-
vent the heads of the various systems
from agreeing upon plans and policies
| for their special benefit and the damage
OF the patrons of their roads. 1t is be
cause of this that the law should be
amended so as to give the government
supervision of rates when found to be
unreasonable. The merger was a mere
incident in the great transportation bat
| tie that will be waged for years to come.
Such meetings as Gov. Van SAINT
describes have for a generation con-
tinuously been held by railway man
ayers in spite OF occasional quarrels
over the Equitable division Of the
right to overcharge. The logical
and final effect Of such agreements
would be in fact, if not In form, the
universal transportation trust. OF
such Il partial trust as the merger
proposed, the Circuit Court of the
United States said in language quoted
with approval by majority of the
Supreme Court:
1t destroyed every motive for cOmpeti-
ton between two roads engaged in inter-
state traffic, which were natural com
petitors for business, by pooling the
earnings of the two rOaCs for the com
mon benefit OF the stockholders.
What the effect of such pooling was
expected to be the makers of the
merger showed when on a cash capi-
tai of $50, 900 they issued $4OO, ,OOO,-
600 OF securities, more than covering
the stock of the Great Northern and
Northern Pacific competitors, y
water and all, by the vast sum in
excess of $122, 100000 There was
no way to give value to this mass OF
securities save by "killing compe-
tition and capitalizing the corpse "
at the expense of the shippers, save
by "equalizing" rates in an ascend
ing scale.
The highest court in the land has
.orbidden such mergers under the
sherman act of 1890. But when Gov.
Van SAINT says that other means will
ne found by railroad managers to
compass the same ends he but re-
peats in warning Il prediction over
which Wall street gloats in exulta-
tiOn. 1t was, among other things,
to prevent the rapacity OF common
carriers conspiring sin restraint OF
trade that the Interstate Commerce
Commission was formed. No prece-
dent will be overthrown, no injustice
will be wrought, no honest interest
endangered by furnishing the private
consumer and producer with such
additional safeguards against vast
a.gregations OF capital engaged in
nonopolstic enterprises as the Triple
Alliance of Cows. Van SAINT, Cummins
and La Toilette demands.