The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-12-21

eoeeenic evils q he present age ass pressing heavily
u1ea then.
~s "A oaae whore the cause of form Of
- svo va % apparent that the remedy suggested
We1 6eeersnce has been made before the enormous
speo'a privilege the Standard OIL trust enjoyed in
csav1ng tho larger rebates from the railroads and
how this enabled that company to make gigantic
su1des IN monopolizing tho refining oil and tho
d11o1ton Of IT, products At tho the Standard
" crust enjoyed larger rebates than other reneries be-
oasss Il vas the larger shipper. It wound up by do
naAGnS and rscsivng drawbacks from the railroads,
psae cut Of he freight rates charged its competing oil
rea1ssssA - tAees two methods secured the elm
f1ae5aa q most Of the Independent oil ref1neries.
An ether lazgss shlppsrs using this same pow
- o1o0gA tho railroads build up their businesses into
noooDones 1t the Of their smaller competitors
Rebates and d5avbacks aids to monopoly building.
Weo - APPARENTLY sv1 that congress- In spite Of the
eoos1ous innsnes brought to bear BY the inter
ests mat benefting under this system forced
BY public demand TO law abolishing all rebates
and dsawbackA In doing this It established the prnr
cpis hat larger and smaller shippers in the line
Of Business should pay the same freight rates to the
railroads No one under present law. IL allowed
better rate than his competitors for the same haul
Congress- by this antirebate law. declared that ow
ing TO the dependence Of all industry the railroads
there should be equal opportunity far freight rates
were concerned In other words established the right
OF the smaller shipper to buy freight transportation at
the price shipper larger quantity
the products Of Industry. Since the establish
uosnt Of this law railroad have been loud in its
praise They have said repeatedly has been
sbe for creating better feeling between their roads
and the shipping public inasmuch It has wiped out
all discrimination between shippers The fairness OF the
principle OF the law has been throughout the
country shown by tho fact that there has been
attempt made to secure it, repeal by any class Of
citizens.
II is a good law In tho case of the railroads the
total amount Of received freight rates bears
it, proporionate share OF the OF operation fixed
charges and dividends The larger shippers when they
were receiving rsbates-discounts their freight
ratss-wsre paying less than tho average amount Of
money required from that source to meet OF
running the roads In order make the special
favor shown the larger shippers higher rate than tho
average necessary charged the smaller shippers.
The cost Of the larger shippers rebate fell their
pettors Under the antrebate law this IL declared
illegal and both larger and smaller shippers tho
rata which Il the rate tho
support Of the railroads
II has been proved before that special privilege,
which 10 undoubtedly the OF economic
evils from which the country Is suffering is founded
the Of the larger purchaser buy for less than
the smaller purchaser OF anything Of equal quality The
equal price law the andote to tho poison special
pr1vilsgs.
The power Of unequal opportunity has been demon
sratsd in the Of the United States Steel
alton Therefore. the theoretical application Of tho
o00o1 INV corporation prove
mating This 10 graphically detailed in diagram G.
Here the Money Power must give equal price and pro-
poronats credit to both the Independent
the United States Steel corporation Furthermore
equal selling price for ore for both tho inde-
pendent and tho trust must b made. This could
bs determined BY dividing the annual tonnage out
put Of both the controlled by the Money
Power into the gross amount received therefor The
result would b average selling price that would
provide for absolute equality in cost OF material
for both tho trust and the independent
Then. ~ shown in diagram g. despite the disparity
in amounts Of consumed. tho question efficiency
10 supreme IN determining tho profits Of the
In this the Independent is granted a high
efficiency than tho trust and. consequently the
proporonate dollar for dollar Investment the eff
Client Independent manufacturer makes Is compared to
the less efficient trusts Nor the trust through
the workings Of the law OF special privilege. absorb
either this profit tho efficient independent
asmuch all special privilege the very minute
the equal price law u fundamentally applied to all pro.
ductive and disributivs industry.
DIAGRAM a.
Controlled By Money Power