The Lafayette advertiser. [volume] (Vermilionville [i.e. Lafayette], La.) 1865-19??, 1908-07-07
source of our socalled political cor

(2) That the gOvernmentisn't strong
to govern Tor regulatel trusts.
1t is in this second particular, by
the way, that Mr.. Bryan differs essen
tally from the President and Mr.
who. believing in the power OF
the government, would let the trusts
grow under the regulation Of the law.
Mr.. Bryan, skeptical of man-made
law, would depend upon an economic
law. the law of competition.
81 believe" he said, that competi-
ton is a necessary force, and Thai
competition should be relied upon
wherever competition is possible.
And competition is possible except
where, in the nature of the case, one
corporation must have the entire busi-
ness
Here is where he returns to his i'm
portant distinction between the rail-
roads and other such pu~blic-servlce
corporations, which are natural, nee
essary monopolies. and "merchan-
disc" corporations, which are artif-
cial and bad.
''City water is an example," he said,
''of natural monOpOlies. 1t is not
possible to have several water plants
in one city. 1t is better to make water
a monopoly. And, one by one, the
cities have learned this and taken pos
session each of its own one plant.
They come naturally to it. They find,
first. hat they can't have competition:
then they find that they can't control
a water monopoly The monopoly
won't let them: it goes into politics
and it neglects the water. And, hav-
ing taken possession, the cities find
that the dangers following public own
ership are less than the evils of pri-
vate ownership. The same experience
will bring the people to the same con-
clusion about any public service
which must be a monopoly
The conversation a off into a COM
parison of notes, showing how cities
everywhere now are struggling with
street-railways, gas, electric light and
other public services, trying hard to
regulate in the interest Of the public
and to stop cOrruption; how these in
terests fight regulation and redoubie
their corruption. But MIR. Bryan be-
lieves in letting the people find out for
themselves what they q and cannot
do in the cities.
II think" he said, that the people
prefer private ownership wherever
private ownership is possible, and it
is the refusal of franchise holders to
deal fairly and honestly with the pub
lie which will finally drive us to own
ership of natural mOnopolies in self
defense"
"Isn't there q conflict of interest
there" l asked, (which makes politi-
cal corruption necessary, economical
ly unavoidable? Take the steam rail-
roads for an example,"
"The steam railroads." he ssid,
''are not SO clearly monopolistic as
municipal services. but the consOlida-
ton of lines and the absorption OF
competing roads are introducing the
monopolistic condition" He cited
cases where in spite of present at
tempts to regulate this merger pro-
cess was continuing. The natural mo-
nopoly is coming naturally, and MI.
Bryan sees it. And as we have seen
above, he says in general terms that
natural mOnopOlies cannot be regu-
lated. Therefore, the railroads must
be publicly owned. Indeed, he spoke
his conviction on this point in his
speech in Madison Square when he re-
turned from Europe. But he doesn't
care to hurry the people in the settle
ment of this question. He leaves that
to the railroads. He will give regula-
ton q fair trial.
SIT has failed in all the states ex-
cept Wisconsin," I suggested.
'sAnd Texas and Oklahoma" he
added. "But," he went on, ''regula-
ton has not been tried sufficiently to
enable the public to pass upon the
question whether it can be made ef-
f~ective, The railroads make it inef-
fective. See how they opposed the
Esch- Townsend bill to regulate. They
organized their opposition to it, and
they were able to prevent the passage
of an effective measure. FOR he law
we got was q compromise and unsatis-
factory. And the railroads soon
learned that they had made q mistake.
When the states began to reduce fares
and regulate traffic. the roads ran to
the federal government for legislation
to deprive state legislatures of power
to regulate even interstate commerce.
and to vest in Congress the exclusive
.ontrOl. And this demand is not ir
the interest of regulation, of course,
but to prevent it. For Congress is not
as responsive to the public even as
the states are. They are headed, those
interests, for the national government.
and If they could concentrate all regu.
lative power at Washington, it would
simply increase their interest in ma
tional politics and make regulation
more difficult than it is now
Mr.. Bryan paused, then he referred
to the fact that just as the railroads
deliver the privileges which corrup'
business and facilitate the growth o.
trusts, SO they are the carriers also o.
most of the big financial and business
corruption of politics."
"And,n he concluded, mo one who
understands the great power and the
various uses of the railroad lobby CT.
regard complacently an increase o.
railroad activity in our national poll
tics"
Regulation is impossible; trying t6
regulate increases the corruption O
government. What, then, are we te
do? MI. Bryan says:
"First, we must strengthen the rep
resentative government by e~lectins
senator's by direct vote of the people
"Second, as to the railroads enc
49, coopono1;oc MO m,ct l. =