The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1906-05-05

resulted in keeping the Standard Oil in
absolute monopolistic control of the
field, enabling it to charge from three
to four hundred thousand dollars a year
more to the consumers of oil in New
England than they wouiG have had to
pay had the price paid been that OBJ
tanning in the competitive fields. This
is characteristic example of the nu-
merous evils which are inevitable under
a system in which the big shipper and
the railroad are left free to crush out
all individual initiative and all power
of Independent action because of the
absence of adequate and thorough-go-
ing governmental control. Exactly
similar conditions obtain in a large part
of the west and southwest. This par
ticular instance exemplifies the fact
that the granting to the government of
the power to substitute proper for an
improper rate is in very many instances
the only effective way in which to pre-
vent improper determinations in rates.
1t is not possible to put into figures
the exact amount by which the Stand
ard profits through the gross favoritism
shown it by the railroads in connection
with the open rates. The profit Of
course comes not merely by the saving
competitors, but by the higher prices it
is able to charge, and (even without
reference to these higher prices) by the
complete control of the market which
it secures, thereby getting the profit on
the whole consumption. Here again
the only way by which the discrimina-
lions can be cured is by comforting up
on the interstate commerce commission
the power to take quick and effective
action in regulating the rates.
One feature of the report which is es-
pecially worthy Of attention is the
showing made as to the way in which
the law is evaded by treating as state
commerce what is in reality merely a
part Of interstate commerce. 1t is
clearly shown, for instance, that this
device is employed on the New York
Central railroad, as well as on many
other railroads. in such fashion as to
amount to thwarting the purpose of the
law, although the forms Of the law may
be complied with.
1t is unfortunately not true that the
Standard Oil company is the only great
corporation which In the immediate
past has benefited, and is at this mo-
ment benefting, in wholly improper
fashion by an elaborate series of rate
determinations, which permit 1t to
Y,roht 10th "a +ha avnansa ne ;tC ,,;x,o G
and of the general public. The attor-
ney- general reports to me that the in
vestigation now going on as to the
shipments by the sugar trust over the
trunk lines running out of New York
city tends to show that the sugar trust
rarely, if ever, pays the lawful rate for
transportation, and is thus improperly,
and probably unlawfully, favored at the
expense of its competitors and of the
general public.
The argument is sometimes advanced
against comforting upon some govern
mental body the power of supervision
and control over interstate commerce,
that to do so tends to weaken individual
initiative. Investigations such as this
conclusively disprove any such allega-
ton. On the contrary, the proper play
for individual initiative can only be Sc
cured by such governmental supervision
as will curb those nonopolies which
crush out all individual initiative. The
railroad itself cannot without such gov
eminent aid protect the interests of its
own stockholders as against one of
these great corporations loosely known
as trusts.
In the effort to prevent the railroads
from uniting for improper purposes we
have very unwisely prohibited them
from uniting for proper purposes; that
is for purposes of protection to them
selves and to the general public as
against the power Of the great eorpo-
rations. They should certainly be given
power thus to unite on conditions laid
down by congress, such conditions to
include the specific approval Of the In
terstate commerce commission of any
agreement to which the railroads may
come. In addition to this the govern
ment must interfere through its agents
to deprive the railroad of the ability
to make to the big corporations the
concessions which otherwise it Is pow
erless to refuse.
The government should have power
by its agents to examine into the con-
duct of the railways-tha is, the exam
liners under the direction of the inter-
state commerce commission should be
able to examine as thoroughly into the
affairs of the railroad as bank examin-
ers now examine into the affairs of
banks.
1t is impossible to work a material
improvement in conditions such as
above described merely through the in
strumentality Of a law suit. A law suit
is often necessary method; but by it.
self it is an utterly inadequate method.
What is needed is the comforting upon
the commission of ample affirmative
power, so conferred as to make its de-
cisions take effect at once, subject only
to such action by the court as is de-
manded by the constitution. The courts
have the power to, and will undoubted-
ly, interfere if the action of the com
mission should become in effect confls-
catory of the property of an individual
or corporation, or if the commission
should undertake to do anything be-
yond the authority conferred upon 1t
by the law under which 1t is acting. !
am well aware that within the limits
thus set the commission may at times
| be guilty of injustice; but far grosser
nd 20, ft,5I1 nd IN,