The people's voice., 1947-06-20

II
Of trade and commerce in trans
the country, and naming as CO.
80 individuals, several
and several score of rate bu-
/. S. District Court in Lincoln,
ds in the drive for monopoly
,power, established in effect, a
private government. In his
opening statement to the court,
Wendell Berge, assistant attor-
ney general declared:
"When the action of congress was
not in accord with the wishes of the
consprators they nulIified the pub
lie law by their private edict".
Little Control by ICC
Statements and evidence presented
to the court, discloses that contrary to
the belief of the people of the country,
the Interstate Commerce Commission
does not in fact govern the fixing of
freight and passenger rates for the
railroads. The principles of the fed
eraI statutory scheme of control by
the Interstate Commerce Commission
and the practice of the commission
rest upon the assumption that COM
petition rather than regulation will
govern most aspects of the economic
and business activities undertaken by
the Individual road"
This popular assumption that the
Interstate Commerce Commission con-
trolls the fixing of rates for freight
and passenger service of the railroads,
is clearly enough negated by the
statement in the annual report of the
for 1889 which declares
"There is gross eXaggeration in the
idea that every act of the railroads
is subject to regulation. The rail
roads have large degree of initiative
in the making of their rates and have
freely made a multitude of reductions
to meet competition. We have no
power to control their passenger serv-
ce and exercise very little control
over their freight service"
Free Enterprise" Destroyed
The "super-governmen established
oy the railroads for their own benefit
and in disregard of the public's in
.erest, effectively destroys any posi-
)ility of competition by any individual
'ailroad The discipline of the AssO-
;iation of American Railroads over all
he railroads is rigidly maintained and
lot one individual railroad dares to
challenge it. This discipline is made
possible because. the railroads are one
mothers best customers. The ICC
las found that during a representa-
i've test period, 40 per cent of the
raffic carried by western trunk lines
originated or terminated in their ter
'itory, while go per cent passed
through. This through freight could
Iissident railroad challenging the au-
hority of the Association of American
railroads, the government.
Maintains West in Colonial Status
The governments presentation of
vidence goes to prove that the inter-
erritorial freight-rate barriers devel-
ped by the association, initiate
gainst decentralization and diffusion
industry based on local resources
nd makes of the east an urbanized
ldustrial area and maintains such
sgions as the northwest including
[ontana in the Colonial empire" clas-
fication as contributors of raw ma
,rials
Powerful Lobby
AS shown by the evidence compiled
Y the government, that railroad lobby
probably the best organized and
of any in the nations cap
al. The broad, general plan for in
uencing members of congress as
lown in the evidence presented by
le U. S. government, contemplated
sting Influential men in each con-
'essional district upon whom the rail
'ad could call to put pressure on
e1r respective congressman to sun
)rt or oppose legislation. These were
Continued on Page Three)