Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-05-04
NECESSITY OF SUPERVISION
Of the Railroads That Have Materially Aided
the Company in It's Work
Summary Of Facts.


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 In the rate itself as
compared with it's competitors, but by the
higher prices 1t is able to charge, and (even
without reference to these higher prices) by
the complete control of the market which 1t
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 interstate
commerce commission the power to take
quick and effective action in regulating the
rates.
One feature of the report which Is espe-
cially worthy OF attention is the showing
made as to the way in which the law Is
eyaded by treating as state commerce what
is in reality merely part of interstate COM
merce. 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 to
amount to thwarting the purpose of the law,
although the forms of the law may be COM
piled with
1t is unfortunately not true that the Stand
ard Oil Company is the only great corpora
ton which IN the immediate past has ben
Gifted. and is at this moment benefting, in
wholly improper fashion by an elaborate
series of rate Determinations which permit
1t 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 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 TRANSFORMATION, and is thus i'm prop
erly and probably unlawfully, favored at
the expense of its competitors and of the
general public.
against comforting upon some governmental
body the power of supervision and control
over interstate commerce, that to do so
tends to weaken individual initiative In
Vestigations 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 SUI
pervision as will curb those monopoIies
which crush out all individual initiative
The railroad itself cannot without such
government aid protect the interests of its
own stockholders as against one OF these
great corporations loosely known as trusts.
As to the Railroads.
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 themselves and
TO the general public as against the power
of the great corporations. They should
certainly be given power thus TO unite on
conditions laid down by Congress. such
conditions to include the specific approval
OF the interstate commerce commission OF
any agreement to which the railroads may
come. In addition to this the government
must interfere through its agents to de-
prive the railroad of the ability to make
to the big corporations the concessions
which otherwise Ii is poWerless to refuse.
The government should have power by
Its agents TO examine into the conduct of
the retlways-that is, the examiners under
the direction of the interstate commerce
commission should be able to examine as
thoroughly into the affairs of the railroad
as bank examiners now examine into the
affairs of banks.
1t is Impossible to work n material inn
provement in conditions such as above de-
scrfoed merely through the instrumentality
OF a law suit. A law suit is often q nee
essary method; but by itself II Is utterly
inadequate method. What is needed is
the comforting upon the commission of
ample affirmative power, so conferred as
TO make its decisions take effect at once
subject oEiy 10 such action by the court
as Is demanded by the Constitution. The
courts have the power to, and will undoubt-
edly, interfere If the action OF the COM
mission should become in effect confis-
catory OF the property of an individual
or corporation, or If the commission should
undertake 10 do anything beyond the au-
thoTity conferred upon 1t by the law un-
der which It Is acting l am we'll aware
that within the limits thus set the COM
mission may al times be guilty of injustice;
but far grosser and far more frequent
injustice, and injustice of a much more In
furious kind. now results and must always
result from the failure to give the COM
mission ample power to act promptly and
effectively within these broad limits.
Though not bearing upor the question of
rallroad rates, there are two measures con-
sideratlon OF which is imperatfvely sug-
gested by the submission of this report The
Standard OIL Company has, largely by un-
fair or unlawful methods, crushed out
home competition. 1t is highly desirable
that an element of competition should be
introduced by the passage of some such
law as that which has already passed the
House. putting alcohol used In the arts
and manufactures upon the free list.
Furthermore, the time has come when no
oil or coal lands held by the government
either upon the public domain proper or
In territory owned by the Indian tribes,
should be aiienated. The fee TO such lands
should be kept in the United States govern
ment whether or not the profits arising from
1t are to be given to any Indian tribe, and
: the lands should be leased only on such
terms and for such periods as will enable