The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1907-04-30
RAILROADS TREATED
AS MONOPOLY
PREDICTION or MEMBER or ~.
INTERSTATE COMMERCE com.
MISSION EVENTUALLY CON /.
TRoLLED BY GOVERNMENT.

I
ber Of the Interstate Commerce c,m-
mission who has given the subject deep
thought believes that the time viii
come In this country when the railroad
business win be looked upon as u
monopoly, treated as a nonopoiw, and
controlled by the government as d
monopoly, He expresses tho opinion
hat In order to Insure an effective ad-
ininlstration of the law 10 regulate
commerce between the states railroads
should be excluded from the provisions
of the sherman antitrust act which
IL aimed at combinations Ia restraint
III trade.
the Two laws are utterly inconsIst-
ent" he said, In discussing the sub
jeci '~rhat creating the Interstate
Commerce Commission, and giving
that body regulatory power may be,
and undoubtedly Ia, productive Of great
good to the carrier. the shipper. and
the public. But the Sherman anti
trust act hangs as d menace over the
business Of the Interstate carriers. |
would not give the railroads unre-
strained license 10 effect combinations
20 Increase or lower rates, or TO parcel
out traffic III their own sweet viii. But
would let competent lines work un-
der agreements. II such agreements
wofe viscd b yshe Federal government.
Such agreements. scrutinized by honest
officials, would In many instances
work for the public good
The member Of the commission quot
ed IL OF the opinion that within the
next year or 80 there win be move
ment, backed by both carriers and
shippers. having FOR its purpose the
exception OF railroads from the pro-
visions OF the Sherman antitrust act.
There has been good deal OF talk
during the past few days TO the effect
that the president has abandoned the
plan TO make physical valuation Of
the railroads Of the United States,
such valuation 10 be used as d basis
In making or correcting rates. No con-
firmation OF this report can be obtained
In official quarters. There Is reason TO
believe. however. that the president
has yet reached no final decision as TO
what form his recommendation to the
next congress for additional railroad
legislation win take. Within the past
month or so disposition mas been
manifested among certain railroad men
TO favor d law aimed at overeapitaiiza-
ton. Those who suggested the enact
ment Of such statute make an argu-
ment In substance as follows:
Small investors are afraid nowadays
to put their money in railroad stock.
II this state OF affairs continues gem
eral decentralization Ia the business will
ensue. The traffic Of the United States
Is growing tremendously. Present
equipment is inadequate. In the past
seven Years the amount OF traffic has
doubled. 1t viii doubtless increase In
like proportion In the next seven years.
Railroad managers need money to ex-
tend their lines, they need money for
betterments. for new and modern
equipment Railroad securities during
the past few months have got black
eye that viii not be effaced in day
or month. II bill passed prohibit
ing the overcapitalization OF railroads.
providing penalties for injection of
water into stock. thus giving in effect,
such securities the stamp of the gov
ernment II would have a salutary ef-
feet in diverting the investment Of a
large amount OF capital in railroad
properties that is now being neld in
reserve or used for other purposes,