Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1906-05-05

cause 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 example exemplifies
the fact that the granting to the gov
eminent of the power to substitute
proper for an improper rate is in very
many instances the only effective way
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 favoritism
shown it by railroads in connection
with open rates. The profit 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 getting the
profit on the whole consumption. Here
again the only way in which the dis
EXAMINATIONS can be cured is by confer
| ring upon the interstate commerce
commission the power to take quick
and effective action In regulating the
rates.
Evade the Law.
Zone 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 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 rail-
| roads, in such fashion as to amount to
thwarting the purpose Of the law, al
though the forms of the law may, be
| complied with.
TT 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 it to pro
fit both at the expense of it's rivals
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 It's competi.
tors and of the general public.
"The argument is sometimes ad.
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. Investi.
cations such as this conclusively dis
prove any such allegation. On the
contrary, the proper play for individual
initiative can only be secured by such
governmental supervision as will curb
those monopolies which crush out all
Individual initiative. The railroad 1t.
self cannot 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 fro hunting for improper pur-
poses we have very unwisely prohibited
them from uniting for proper pur.
poses; that is, for purposes of protec.
ton to themselves and to the general
public as against the power of the
great corporations. They should Ger.
tainly be given power thus to unite on
conditions laid down by congress, such
conditions to include the specific ap.
prevail Of the Interstate Commerce
commission of any agreement to which
the railroads may come. In addition to
this the government must interfere
through it's agents to deprive the rail.
road of the ability to make to the big
corporations the concessions which
otherwise it Is powerless to refuse.
More Power to Government.
The government should have power
by it's agents to examine into the con.
duct of the railways is, the ex-
aminers under the direction of the in
terstate commerce commission should
be able to examine as thoroughly into
the affairs Of the railroad as bank ex-
aminers now examine into the affairs
of banks.
ut is impossible to work material
Improvement in conditions such as