The Spokane press. [volume] (Spokane, Wash.) 1902-1939, 1909-04-28
~ JOSEPH II. CALL.

ed to describe In outline the mo-
nopoly in transportation which,
through the control of great trans
continental railroads by the Rookie
Teller, Rogers and Hartman syndi-
cate, dominates today the COM
merce of the United States from
Atlantic to Pacific and from the
Great Lakes to the Gulf.
~ The fact of the existence OF this
monopoly is generally known. But
what does 1t mean? The question
is vital to producer, shipper, dis
tributor, consumer. A few figures
will supply the answer:
The gross earnings of the rail-
ways of the United States for the
last two years has exceeded $2,700,-
100000. If we add to that the earn
ings of the express companies and
sleeping car companies, the earn
ings will exceed $4,000, 100000 per
year. An increase of 10 per cent
in rates, therefore, such as is pro-
vided for in the "Transcontinenta.
Freight Bureau Tariffs" referred to
in the preceding article, which went
into effect on January 1 Of this
year, is equivalent to an additional
tax upon the people of $500, 900, 900
a year.
The interstate commerce act of
1887, amended two years ago by the
so-called rate BILL" when consid-
cred as to it's effects, is one of the
most extraordinary public laws ever
adopted by government to protect
its people. That law, while purport-
ing to regulate railroad rates, au-
thorizes, as it is now construed, the
various competitive lines of rail-
road and steamships to combine to-
gether in common ownership and
control, to stifle competition, fix
rates and from time to time to adj
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 prosecu-
ton.
1t is true the act purports to al
low an individual to complain to
the commission as to an advance
after it has been made upon COM
modify and the commission may
subject to review In the courts,
may take testimony and make find
ings that the rate Is unreasonable,
but in its actual operation, this rail
road rate act has effected alto
gether an advance Of Is per cent
in railroad rates since the amended
act went into effect two years ago,
without any appreciable reduction
having been secured.
The so-called railroad terminal
rates. governing railroad transpor-
tation 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 railroads
were combined and before they Sc
cured control OF the coastwise COM
merce by water, these terminal
rates no doubt were made to meet
water competition, but such is not
the case now. The coastwise COM
merce by vessel between the Allan
tic and Pacific oceans has been
practically destroyed and the trans
continental commerce has been
forced over the railroad lines at
constantly increasing rates.
To give an idea as to the real
difference between the water rate
and the present railway rates, the
following figures suffice to illus
trate: The rates on grain in for
eign ships from Pacific coast to
England, via the Horn, has for sew
eral years been under 81 per ton.
The rates on grain from New York
or Boston to Europe has been under
90 cents per ton. The rates on
bulky freight from German ports to
Pacific coast ports by steamer has
been about S. per ton. From these
figures, we may estimate that fair
rate by sailing vessel from New
York to San Francisco, via the
Horn, is "a per ton, and by steam
er Sc per ton.
Yet the figures show that prac-
tically all of the vast commerce
moving between the east and west
is now moved by rail at from $25
to $40 per ton, where the water
rate, II there were any commerce
upon the water, would be from 81
to Sc per ton.
Conservative estimates, based up
on the tonnage as well as upon the
-~arnings of the Pacific roads, indi-
cate that south of the Tehachapi
mountains in California, the rail.
road combine is earning $4,000, 900
year in excess of what 1t would
earn II there were free competition
by water, and that such earnings
north of the Tehachapi in Califor-
MIA exceed $40 ,O00,0 a year in ex-
cess of competitive water rates; and
in Oregon and Washington such ex-
cacciva aarntppc avCaad %E0 00a nm