The New York herald., 1922-02-26

UNITED STATES 1s10-1s21. BY
Frank Haigh Dixon. Charles Scrib-
ners Sons.
"HE Interstate Commerce Act
went into force March A. 1857.
At that time railroad officers
and directors supposed that the rail-
foads were the private property of
the stockholders and that it was
their duty to administer a railroad
Tor its owners just as they would
have administered a blast furnace
or department store. 1t was their
duty TO produce the largest amount
o. their commodity. transportation,
that they could with the means ut
hand; to produce that commodity
IS chcaply as they could and to sell
u at The best prices that they could
set. Railroading was just another
kdnd OF manufacturing and selling.
Ehts simple theory was held not only
D. railroad men but by most out
siders who tried to think down to
the fundamentals of the business. We
say "most outsiders" Even as long
ago as 1857 there were q few Ameri-
cans who had begun to think of rail-
roads as servants of the State. This
was especially true of men who had
come under the influence of German
writer's and lecturers, among whom
the doctrines of State Socialism were
already highly developed.
In carrying out their simple, in
dividualistic. American theories rail-
road officers tried to develop the
communities and industries served
by their lines. because those COM
munities and industries would fur
nish stuff to carry and passengers to
move and would buy transportation
which the railroads made and sold.
This policy brought about discriml-
mating rates. but It built cities.
Transportation could be sold at in
terror non-competitive points for
higher prices than could be got at
competitive points. and so the buyer
had sometimes to pay more for a
short haul than for a long haul
This was logical in the American
theory. but it was extremely unsat-
Lsfactory TO the man at the interior
point.
The shipper who could buy trans
portation by the trainload was more
important than the man who bought
BY the carload. and the carload man
was more important than the a c. l."
man. Furthermore the trainload
man was probably at a competitive
point. These things brought about
discriminating rates as between
shippers.
It IS true that indivldualism Is the
creative impulse in the evolution of
civilization. but in railroading it de-
veloped the situations Just described
and in those situations some bad
things were developed. It Is not a.
al certain that railroad socialism
win not develop for worse things: it
Il a good gamble that Il win. OF this
suggestion Prof Dixon says that we
are enjoying to our universal salts
faction a number Of socialistic activ-
tiles. c. o., the public postal facilities
This Is begging the question. 1t IS
another fair gamble that our mails
would be carried better and much
cheaper by private contractors than
by the Government. Has Prof
Dixon forgotten BurleSon so soon?
Even a philosopher should have a
better memory.
Among the unfortunate develop
ments Of the individualistic period
was the railroad grand duke. He
was arrogant. pomp0us and aIOof
His spirit went down to the ticket
seller. who scorned you. The grand
duke and the scorIful ticket seller
did their best to arouse the resent
ment and the active and passive hos
tility OF the American public. and
this resentment and hostility did a
great deal to bring about the long
train OF bad legislation and worse
administration OF the law which has
terribly weakened the railroads in
The investment market and has Grip
pied them in a hundred ways to the