Courier Democrat. (Langdon, N.D.) 1891-1920, 1905-06-01
BREEDS M%oNoPoL|Es.
Most Big Trusts Founded on
Railroad Favoritism.
THE NEED OF RATE REGULATION
Advantage In This Matter Means
Life to One Competitor and Death
to the Other-Why Control Should
Rest With the Government.

Life to One Competitor and Death
to the Other-Why ontrol Should
Rest With the Government.
Pending the expected calling Of an
extra session of congress in the fall to
grapple with the rate question there is
much discussion of the proposition to
increase the powers of the interstate
commerce commission, if indeed that
body has any power whatever. Some
Of those participating in the argument
are peculiarly qualified to throw light
upon the subject, notably the interstate
commerce commissioners themselves.
Commissioner Prouty, who is one of
the keenest students of railroad legis-
lation il the country and an intelli-
gent advocate Of effective government
control, made an interesting address
at the Union league dinner in Chica-
go recently, in which he dwelt espe-
cially upon the relation Of the railroad
to the trust question. Most of the great
trusts, he declared, were founded upon
railroad favoritism, whether in the ma
ture Of rebates or otherwise. He add
ed:
"Not only is the railway itself the
greatest monopoly by far, but it is the
mother Of countless monopolies. 1t is
we'll understood that an advantage in
the railway rate means life to one COM
petitor and death to the other, and the
advantage is not Of necessity from the
payment Of the rebate. The boast of
the Standard Oil company today is that
it takes no rebates. 1t does what is
better than take rebates-it makes the
schedule"
Commissioner Prouty not only advo-
Gates putting an end absolutely to the
giving Of rebates, which can be done
by simply enforcing existing law, but
says that to put an end to existing
abuses some governmental agency
must have power to fix rates on rail-
ways where the prevailing rates are
unfair and unjust.
he declares that the whole matter
hinges right here; that governmental
power must take rate making out Of
the hands of the railroads and itself
name just and fair rates for the pro-
lection Of the public from the extor-
tons and determinations of common
carriers.
1t is now everywhere recognized, ex-
cept in selfishly interested quarters,
that the interstate commerce commits
sion ear only be made capable Of per
forming the functions for which it was
created by empowering it to readjust
and equalize rates upon the establish
ment Of proof of their eXorbitance or
inequality, or by the creation of a spe,
cial judicial tribune whose sole func-
ton it shall be to sit in cases of the
kind and redress real grievances.
The proceedings should be more judi.
cial than p%aternal, but there should be
no possible question as to the power OF
the government as the final arbiter. AS
a common carrier, subject to interstate
commerce regulations, the railroad is
properly the subject Of federal super
vision, and it has no one to blame but
itself if it's lack Of fairness in it's bust
ness dealings with the citizens of the
several states brings it in contact witt
the supreme power of the government
The solution Of the whole problem
lies, as Commissioner Prouty says, ii
government control of rates, just as
the state railroad commissions are sup
posed to have power to control rate:
within their respective states. Whe1
the central government asserts this in
herent power we shall hear nothin!
more Of injustices and inequalities o
: the kind, and may the reform com
2 quickly!-Atlanta Constitution.