Omaha daily bee., 1905-08-20
SQUARE DEALS IN TRAFFIC
Features Of the Pending Railroad RsgulS-
ton Bill Just and Reasonable
sHALlowNEsS OF OPPOSITION ARGUMENT
Necessity for National Restriction of
the Dangerous Power Lodged in
Tramo Managerial square
Deal for Everybody"

Deal for Everybody"
o. P. Gothlin, freight manager for the
National Cash Register company OF Day
ton, o., regards the essential features Of
the Esch-Townsend rate regulation bill
pending in congress as "a square deal for
everybody" and presents his views in
American Industries as follows:
Whether or not It be for the best inter-
ests OF the general public that the Esch-
Townsend bill be passed by the senate in
the shape that It came from the house, is
now being debated all over the country.
The senate committee on interstate COM
merce has heard exhaustive arguments en-
both sides, but has, as yet, given no indi-
cation as to what their report will be. 1
have no sympathy with the man who Is
"agin the railroads. on general principles:
nor with the man who does not feel the
same moral obligation to deal with as
strict honesty with a railway corporation
as with an Individual. In approaching this
question all prejudice should be laid aside,
that we may consider II in a fair-minded,
unbiased temper. Every fair-minded citl-
zen will concede that the carriers are en-
! titled to a fair return for the service they
! perform. The stockholders are entitled to
just return on their investments and the
! servants are entitled to an adequate COM
pensation for their work On the other
/ hand. there rests upon the carrier the
moral obligation to deal fairly with all
! patrons alike; to discriminate in favor Of
none, or against none.
Tariffs Essential in the Selling.
Every Individual firm or corporation will
conduct it's business with the intent Of pro-
curing producing its wares at the lowest
| cost possible and marketing them at the
highest price possible. This policy is not
subject to criticism; but there are limita-
lions applicable to transportation compan-
les that are not applicable to other lines
OF business. can best show this by illus
tratIon
| corporation manufacturing steam en-
! Eines must take into consideration compe-
ttion in making its prices. 1t may, for
limited time and for limited ex.
tent, by means of patents or COM
binatIons create an artificial monopoly,
but It is not a natural monopoly. On the
other hand, transportation line is, in its
relation to the majority of It's customers,
a natural monopoly Those of its patrons
who are located at noncompetitive points
can buy of that line only. They cannot re-
fuse to buy the service, at the price It is
offered for sale, without going out Of bust
ness; and more than 80 per cent of the
tonnage handled by carriers originates at
local points.
In all time since law has been recog-
nized, natural monopolies have been con-
sldered amenable to legal limitations from
which other lines of trade have been
exempt. We see this principle applied
today in such small things carriage
fares. In every large city the charges
that may be assessed by hack drivers arc
regulated by ordinance. Street car fares
are regulated by municipal ordinance,
and In most states passenger fares and
freight charges are subject to legislative
control why, then, the strenuous objec-
ton to the Esch-Townsend bill, which is
merely an application of this principle?
what the Esch-TOwnsend Bill Means.
What are the provisions of the much
discussed bill? It authorizes the Interstate
Commerce commission to determine
whether a rate complained OF by a shipper
be Just or reasonable, or unjust and I'M
reasonable; and in the event that the rate
be found unjust and unreasonable, what
rate shall be substituted therefor. But the
bill also provides for an appeal by the
carrier to a special court, which ensures
to the carrier exemption from action by
the commission that would amount to con-
fiscatlon. 1t would seem that the proposed
|
that no possible harm could result to the
carriers. It would also appear from At
torney General Moody's recently published
opinion that the bill, II enacted into a
law. would be strictly within constitutional
limitations.
Some Of the gentlemen who appear be-
fore the senate committee have spoken
as though they were alarmed at the effect
the bill would have, II enacted into law,
upon railway investment. They seem to
think that the immediate effect would be
a reduction of revenue and consequent
depreciation of stock values. Such anti
cipations are to my mind, entirely I'M
! founded. In the first place 1t is not to be
supposed that the commission will stultify
itself by radical action, and in the second
place, the special court would promptly
reverse It IL 1t did. In all human prob
! ability, after the law Of 1t become a law
has been in effect year, It will be found
that the average rate per ton per mile will
not have been decreased at all. On the
contrary. it will probably have been in
creased.
It is not ruinously low charges that the
public demand, but fairly adjusted distri-
button of charges, There are three kinds OF
discrimination; discrimination between In
dividuals discrimination between commo-
dities and discrimination between Localities.
Formerly, the first mentioned was the great
evil. It was effected by means OF rebates;
but it is now a thing Of the past. 1t may
! exist in a few isolated cases, but the public
] generally are not cognizant OF It. The
Elkins law killed it, almost, II not entirely.
But discrimination between commodities
and between localities still exists. and will
, continue TO exist until there be some such
legislation as that provided in the Esch-
J Townsend bill.
Railroad Inconsistency.
1t seems inconsistent to commend the
Elkins law and condemn the Bsch-Town-
send bill. and yet some Of our good friends
representing the carriers side of the
controversy do this very thing. The Esch-
, Townsend bill represents exactly the same
ethical principle that does the Elkins law.
Both seek TO prevent discrimination. The
Elkins law aims at discrimination by secret
rates the Esch-Townsend bill at dis
elimination by tarif rates.
Suppose two manufacturers OF the same