Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-03-07

control from the broader standpoint of the
roads and all shippers AS a consequence
I am forced to the conclusion, from every
standpoint that the roads are better able
to fix rates in accordance with the laws or
trade than a government"
Mr.. Scott declared that as to the charge
of unreasonable rates, there Is practically
no foundation for it. He referred to fear
that the railroad consultations would
have the effect in the future of greatly ad-
vancing rates, but he expressed the opinion
that that question could be dealt with when
1t presents itself, IL 1t ever does.
Should railroads by merger attempt to
limit competition and thereby lessen the
opportunities for commerce, for one he
said, would insist on radical action
The German System.
Discussing determinations in favor OF
certain localities as against others, the
senator entered upon an analysis of the
effort to prevent such Determinations in
Germany, Austria, Australia and other
countries He gave especial attention to
the German system saying:
Broadly speaking. after twenty-five
years of experiment and trial, the situation
in Germany. as regards discrimination and
the Capitalization of trade and commerce,
has changed only for the worse. The scheme
has been a failure; commerce and trade
have more effectually been centered In GER
tain Favored CUES imam ever DtloIe
discrimination has been increased instead
of decreased. Sectional interests and trade
interests are at swords points concerning
the preservation of established trade and
industry. and use any means to prevent
that increase of competition between rival
purchasing and distributing centers, which
was Inevitably good with the development
of long distance traffic. Railroad rates are
in politics No great state measure In
the German empire can be carried through
Will q diSCOrdlnt interests
on the railroad question. SO bitter Is the
feeling so intense the rivalry, that the
German government has been forced to go
into the canal-building business on a most
extensive scale; has been forced to grant
export bounty duties, levy import duties.
and in every way possible try to placate
diverging and sectional interests. Virtually,
freight or traffic BARRIERS have been built
around section after section of that en-
pire, until each secton stands today by it
self, fighting for commercial interests"
He also declared that the German roads
have not advanced in capacity to handle
trade in roadbed or In any other way in
which the modern railroads of America
have grown to be such marvels OF mechant--
cal genius" He admitted that the German
government has been fairly successful in
limiting personal discrimination.
How the West Was Built UP.
He declared that If the European system
had been adopted in the United States the
buffalo might today still be roaming through
the wild grass of the west. and that the
trade of the country would be conferred
In a few cities of natural location. ION a
hard and fast system of mileage rate such
as Germany has he said. New York
would today handle the bulk of the trade"
Instead. there are now ten great concen-
trating grain markets. from which radiate
roads in all directions. The traffic is watched
from day to day. and rate war is the final
arbitrator of differences that cannot other
wise be settled. So In every case the rates
are compromise between rival interests.
As a compromise they perhaps please no
one, but they are for the general good, and
the result of free, unhampered trade
competition"
Mr.. Scott discussed the basng-point sys-
tenn as one of the policies of the railroads
which have done much to decentralize trade
In the United States and to establish dis
tributing points all over the land He said
that the original interstate commerce act
had been expected to do away with that
privilege but that the Interstate commerce
commission. while inveighing against 1t.
had admitted that the system had resulted
In cheaper freights He drew the general
conclusion that the establishment of these
basing points has made the railroads of the
United States what they are today ITO
meet the efforts of their rivals roads have