The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1906-05-04
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over its independent competitors The
refusal Of the railroads in certain
cases TO prorate produces analogous
effects Thus in New England the re
fusaI OF certain railway systems TO
prorate has resulted in keeping the
STANDARD On in absolute monopoisttc
control OF the field, enabling it TO
charge from three TO four hundred
thousand dollars a year more 70 the
consumers of oilSin New England than
they would have mad TO pay had the
price paid been that obtaining in the
competitive fields. This is a cna-ac-
teristic example OF the numerous
evils which are inevitable under q
system in which the big shipper and
the railroad are left free 10 crush out
all individual initiative and all power
of independent action because OF the
absence of adequate and thorough
going governmental control Exactly
similar conditions obtain in a large
part OF the West and Southwest. This
particular instance exemplifies the
fact that the granting TO the overn-
menI of the power to substitute a
proper for an improper rate is in very
in which TO prevent improper discrim-
nations in rates
1t is not possible TO put into figures
the exact amount by which the Stand
ard profits through the gross favorit-
ism shown it by the railroads in con-
it Of course comes not merely by the
saving in the rate itself as compared
with its 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 get
ting the profit on the whole consump-
ton Here again the only way by
which the Determinations can be cured
is by comforting upon the Interstate
Commerce Commission the power TO
take quick and effective action in reg
ulatinS the rates.
One feature OF the report which is
especially 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
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 thwartinS 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 imme-
date past has benefited, and is at this
moment benefitinG, in wholly improp-
err fashion by an elaborate series OF
rate Determinations, which permit it
to profit both at the expense of its
rivals and OF the general public The
Attorney-Genera1 reports to me that
the investigation now going on as to
the shipments by the sugar trust over
the trunk lines running out of New
York City tendsrto show that the suS
ar trust rarely If ever pays the lawful
rate for transportation. and Is thus
improperly. and probably unlawfully.
favored at the expense of its competi-
tors and of the general public
The argument is sometimes advanc-
ed against comforting upon some gov
ornamental body the power of Supervi-
sion and control over interstate com
merce, that to do so tends to weaken
individual Initiative. Investigations
such as this conclusively diSprove any
such allegation. On the contrary. the
proper play for individual initiative
can only be secured by such govern
mental supervision as will curb those
monopolieS which crush out ~all indi-
vidual initiative. The rail road itself
can not without such Government aid
protect the interests Of its own stock
holders 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 corpor-
atoms They should certainly be Civ