The independent. [volume] (Lincoln, Neb.) 1902-1907, 1906-05-10
The Nebraska Independent

| e0AAAu6 III LIE COIupcIllfS uSlQS.
This is, characteristic. example O
the numerous evils which are newt
able under a system in which the bis
shipper and the railroad are left free
to crush out all individual initiative
and all power of independent actor
because of the absence of adequate
and thorough-going governmental con
| troll. Exactly similar conditions OBJ
tain in large part of the west and
southwest. This particular instance
/ exemplifies the fact that the granting
to the government of the power tC
substitute a proper for an improper
rate is in very many instances the
only effective way in which to pre-
vent improper discrimination in
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.
nection with the open rates. The
profit, of course, comes not merely by
the saving in the rate itself as COM
pared with it's competitors, but. by
the higher prices it is able to charge,
and (even without reference to these
higher prices) by the complete con-
troll of the market which it secures,
thereby getting the profit on the whole
consumption. Here again the only
way by which the determinations can
be cured Is by comforting upon the in
terstate commerce commission the
power to take quick and effective ac-
ton in regulating 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 a
part of interstate commerce. It is
clearly shown, for instance, that this
device is employed on the New York
Central railroad, as we'll 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 inn
mediate past. has benefited, and is at
this moment benefiting, in wholly i'm
l
of rate determinations, which permit
it to profit both at the expense of its
rivals and of the general public. The
attorney general 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 tends to show that the sugar
trust rarely pays the lawful rate for
transportation, and is thus improper
ly and probably unlawfully, favored
at the expense of its competitors and
of the general public.
The argument is sometimes adj
vanced against comforting upon some
governmental body the power OF SUI
pervision and control over interstate
commerce, that to do SO tends to
weaken individual initiative. mvesti-
cations such as this conclusiveiy dis
prove any such allegation. On the
contrary, the proper play for individ-
ual initiative can only be secured by
such governmental supervision as will
curb those monopolies which crush
out all individual initiative. The
railroad itself can not without such
government aid protect the interests
of it's own stockholders as against one
of these great corporations loosely
known as trusts.
In the effort to prevent the rail-
roads from uniting for improper pur-
poses we have very unwisely prohibit
ed them from uniting for proper pur-
poses; that is, for purposes OF pro-
lection to themselves and to the gen.
eral public as against the power OF
the great corporations. They should
certainly be given power thus to unite