The Detroit times., 1909-04-23
<IDD,000,000 FED
INTO TRUSTS NAV
Nh No Competition By Water
0ailSeads Have Monopoly and
Exact Needless Tribute.


troll Of great trans-continental rail-
roads by the Rockefeller, Rogers ana
Hartman syndicate. dominates today
the commerce OF the United states
from Atlantic TO Pacinc and from the
great lakes TO the gulf.
The fact Of the existence OF this
monopoly IL generally known. But
what does II mean? The question
r. vital to producer. shipper. d.
tributor. consumer. A few ngures VIII
supply the answer.
The gross earnings of the railways
Of the United States for the last two
years have exceeded $2.700. 600. 900. IL
We add TO that the earnings OF the ex-
press companies and sleeping car
companies. the earnings will exceed
$4,000. 100000 per year. An increase
Of 10 per cent In rates, therefore, such
90 n provided for In the "sranscontin-
entAl freights bureau tariffs" referred
q In the preceding article. which
went into effect on Jan. ! or this year.
u equivalent to an additional tax upon
the people OF $500. 100000 a year.
The interstate commerce act OK
1887, amended two years ago by the
so-called rate BILL" when sidered as
70 its effects, Is ono Of the most ex-
trsordinary public laws ever adopted
BY q government TO protect It's people.
That law, while purporting TO regulate
railroad rates, authorizes. as 1t Is now
construed. the various competitive
lines OF railroads and steamships 10
combine together I'm o common owner
ship and control. to stifie competition.
Ak 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.
Il 10 true the act purports TO al
low an individual to complain 10 the
commission as to an advance after
IL has been made upon a commodity
and the commission may subject to
review In the courts may take testi- !
mony and make findings that the |
rate is unreasonable. but In It's actua |
operation. this railroad rate act has !
effected altogether an advance OF Is |
per cent In railroad rates since Ia
amended act went into effect two
years ago, without airy appreciable re
dnction having been secured.
The so-called railroad tier miral
rates. governing railroad transporta-
ti0D between the Atlantic and Pacific /
and between the great lakes and the !.
gulf are supposed TO be based upon \
the competitive sater rates between |
the railroad term nails. Before the rail- /
roads were combined and before they !
secured control OF the coastwise com !
Jperce 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
CHIC oceans has beer practically de-
nfrOyed and the transcontinenta! !
commerce has been forced over the I
.nilroad lines at constantly increasing !
rates.
To give an idea as to the real diff |
forence between the water rate and
the present railway rates. the follow
Ing figures sufice 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 90 cents per ton The |
rates on bulky freight from German |
ports to Pacific coast ports by steam
.er has been about IS per ton. From \
these figures. we may estimate that a ,
fair rate by sailing vessel from New /
York to San Francisco. via the Horn, I
n 81 per ton. and by steamer Sc per
fon.
Yet the figures show that practical
~ all OF the vast commerce moving
between the east and west is now
moved by rail at from SIS TO $50 per
ton, where the water rate, IL there
were any commerce upon the water.
would be from "a 10 Sc per ton.
Competition 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 a year In excess
Of what IL would earn IL there were
free competition by water, and that
such earnings north of the Tehachepi
tn California exceeded $30.000.c00 g
year In excess OF competitive water
rates; and In Oregon and Washing
tor such excessive earnings exceed
$50 100000. making a total sum of
more than slO0.000.000 year earned
BY the railroad combine In excess OF
what would be earned with competi-
I've water commerce.
The railroad monopoly has not beer
accomplished alone by combining to-
gether 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
Deing 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 II
NE so-called "coastwise trade act"
- the United States congress. which
prohibits any foreign ship from carry.
Ing freight from one American mort
TO another American port. This law
ought speedily TO DE repealed. tor so
1ong az II remains operative the mon.
opoly OF commerce by rail and by
water can be maintained without the
combine's being required To purchase
81 control foreign vessels and foreign /
trade.
There can be no relief to the public
IN transportation between the Allan. |
nc and Pacific unless the United |
0(o<es government establishes a |