The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1909-04-23
st00,000,000 FED
into TRUSTS NAV
With No Competition By Water
Railroads Have Monopoly and
Exact Needless Tribute.
By JoeEPh n. CALL.

transportation which, through the con-
troll Of great trans.continental rail-
roads by the Rockefeller, Rogers and
Hartman syndicate, dominates today
the commerce of the United states
from Atlantic TO Pacific and from the
great lakes to the gulf.
The fact OF the existence Of this
monopoly 10 generally known. But
what does II mean? The question
ir vital to producer. shipper. dis
tributor. consumer. A few ngures will
supply the answer.
The gross earnings OF the railways
Of the United States for the last two
years have exceeded t2.700, 900, 900. II
we add to that the earnings OF the ex-
press companies and sleeping car
companies. the earnings will exceed
IS. 900. 100000 per year An increase
OF 10 per cent in rates. therefore, such
as Is provided for III the ".ranscontin-
entail freights bureau tariffs" referred
10 in the preceding article. which
went into effect ON Jan. l OF this year.
Is equivalent to an additional tax upon
the people of $500. o00. 900 year.
The interstate commerce act OF
1887. amended two years ago by the
so-called rate bill" when sidered as
to its effects, Is one OF the most ex-
traordinary public laws ever adopted
by a government to protect It's people.
That law. while purporting to regulate
railroad rates, authorizes, as II is now
construed, the various competitive
lines OF railroads end steamships to
combine together in common owner
ship and control, to stifie competition,
FIX rates and from time to time to ad-
vance such rates without there be-
ing any constituted authority in the
United States authorized to stop such
advance, such pools or such combines
by any effective prosecution.
Railroad Rates Advance.
1t Is true the act purports to al.
low an individual TO complain TO the
commission as to an advance after
il has been made upon commodity
and the commission may subject to
review In the courts. may take testi-
mony and make findings that the
rate IL unreasonable, but In its actua'
operation, this railroad rate act has
effected altogether an advance Of Is
per cent In railroad rates since tn
amended act went into effect two
years ago. without airy appreciableLre
duction having been secured.
The so-called railroad terminal
rates" governing railroad Transports
ton between the Atlantic and Pacific
and between the great lakes and the
gulf are supposed to be based upon
the competitive water rates between
the railroad terminals. Before the rail-
roads were combined and before they
secured control OF the coastwise com
merce water, these terminal rates no
doubt were made TO meet water com.
petition. but such Is not the case
now. The coastwise commerce by
vessel between the Atlantic and Pa.
cific oceans has been practically de-
stroyed and the transcontinental
commerce has been forced over the
railroad lines at constantly increasing
rates.
To give an idea as to the real DIFF
ference between the water rate and
the present railway cetes, the follow
ing figures suffice TO illustrate; The
rateson grain in foreign ships from
Pacific coast TO England, via the Horn,
has for several years been under 81
per ton. The rates on grain from
New York or Boston TO Europe has
been under 80 cents per ton The
rates on bulky freight from German
ports to Pacific coast ports by steam.
er has been about S. per ton. From
these figures, we may estimate that a
fair rate by sailing vessel from New
York to San Francisco, via the Horn,
is 81 per ton. and by steamer SO per
ton.
Yet the figures show that practical.
lv all OF the vast commerce moving
between the east and west is now
moved by rail at from $25 to $50 per
ton, where the water rate, IL there
were any commerce upon the water
would be from 81 to So per ton.
Composition by Water Needed.
Conservative estimates, based upon
the tonnage as well as upon the earn
ings OF the Pacific roads, indicate that
south OF the Tehachepi mountains In
California, the railroad combine is
earning S20,000,000 year In excess
of what IL would earn II there were
free competition by water. and that
such earnings north OF the Tehachepi
in California exceeded S30.000.c00 c
year In excess Of competitive water
rates; and In Oregon and Washing
tor such excessive earnings exceed
$50, 100000, making a total sum or
more than 500. 100000 year earned
by the railroad combine In excess OF
what would be earned with compeu.
tive water commerce..
The railroad monopoly has not beer
accomplished alone by combining to-
sether the railroads in the United
states and acquiring the ownership
OF the coastwise vessels, but has been
made very effective through the pass
age OF state laws granting TO these
railroads and TO their controlled cor.
porations the water front, such grants
neing either In fee or by ease upon
all Of the ports on the. Atlantic and
Pacific oceans where such competl
tive business might be handled.
Another aid TO the monopoly ~
the so-called "coastwise trade act"
OF the United States congress, which
prohibits any foreign ship from carry.
ing freight from one American port
to another American port. This law
ought speedily TO be repealed. for so
long as Il remains operative the mon
opoly OF commerce by rail and by
water can be maintained without the
being required to purchase
or control foreign vessels and foreign
trade.
There can be no relief 70 the public
in transportation between the Allan.
tic and Pacific unless the United