The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-10-24

business in this country this is the re-
suit of INSCRIPTIONS greed and is the
modern analogue of the piracy and
/ brigandage of former times. The rob-
Der barons of today grow rich by plum
dering industry and trade. as did those
of former days, and will be held in the
same kind of estimation as the moral
standard rises. though now they have
the highest seats in the synagogue and
appear as leaders in social, religious and
observation-disclosures enterprises.
The allegation of Mr.. Midgeley, for
mer chairman of the Western Trunk
Lines association, in testifying before
the Interstate Commerce Commission at
Chicago, that the private car companies
are "the greatest trust in the world
and have the railroad companies firm
ly in their grasp" seems like an extrav-
agant statement, but 1t sharply directs
attention to the power which these in
dependent car companies have acquired
over railroad traffic in certain lines.
They had their origin in the develop
ment of dressed beef packing, which re-
quired the use of special refrigerator
cars for the transportation of meat
products over long distances. These
came to be supplied by the packers
themselves, and after n while they
formed separate corporations to fur
nish the cars and manage their use,
making contracts with the railroad
companies for hauling them over their
various lines. The extension of this
business of transporting perishable pro-
ducts, or those requiring special pro-
vision for handling, in cars owned by
shippers or combinations working in
their interest, is a matter of common
knowledge. Examples. of it appear in
tank cars for meat products, and in
those especially adapted for fruit, vege-
tables and dairy products. The railroads
could hardly be expected to meet the
requirements of this traffic, which grew
up rapidly. by providing cars of their
own specially adapted to it. The re
quirements were exceedingly irregular
and the lines over which they extended
went in various directions and made
many connections. No one railroad
could calculate upon it's needs or adjust
its facilities to meet them. and no effec-
tive agreement or concert of action
the lines was practicable. On
the other hand, not all shippers of
dressed meat or of flesh fruits could
own cars and make contracts with rail-
roads for their transportation. The
natural result was the organizing of
car companies, and 1t was equally nat
ural that these should be controlled by
the large shippers of the commodities
using the cars.
This is one of the developments out
of industrial and trade conditions of
which we hear SO much in explanation
of the growth of trusts and combina-
lions, and sometimes in justification of
their methods. Nobody can deny the |
practical necessity out of which these !
car companies have been evolved, or
the advantage of a transportation of 4
this kind, that has to be conducted I
apart frcm the routine OPP
Grafton of the railroads. 1t serves an |
extremely useful purpose, but the re-
suit is to put both the railroads and |
shippers of the commodi- /
ties requiring this kind of service more |
or less at the mercy of the car COM |
panies. The railroads have practically !
no rolling stock of their own for an
important part of their traffic, and g.
large class of shippers become depend
ant upon the car companies for facili-
ties Those companies are controlled |
by the largest shippers, like the pack /
ng houses, who are able to drive hard
bargains with the railroads and to
force a discrimination in the treatment |
IF those who use the cars without any
share in their ownership. According TO
testimony before the interstate COM
nerce commission the power acquired
oy this car trust" has been used
without remorse and without fear" to
extort favorable contracts from the
,ailroads and at the same time to
rush out competition with the con-
Germs that control the trust" or are
n league with it. A packing company
II fruit company having the advantage
If ownership in the cars can get it's
done at so much less
cost than others that the latter have
10 chance in competition with them,
and the tendency to concentration and
is emphasized.
Here is the old evil of discrimina-
ion in freight charges on railroads In
4 new guise, having the same effect
Is the special rates, rebates and draw
packs of which We used to hear so
much. 1t adds another phase to the
practical problem of getting our sys-
em of transportation upon an eQuita-
Die basis. where the rights of all may
De secured. Whether the solution Of
he problem lies in organizing a single
corporation to acquire and manage the
refrigerator and other special service
,ars. and to be itself controlled by the
abroad companies that do the actual
as has been proposed, is a
question for careful consideration; but
{ is evident that something must be
lone to rectify an abuse begotten of
power of monopoly OF levy tribute upon
he many for the profit of the few.