PART II.--THE ADVANTAGES OF NATIONAL OWNERSHIP.

[9] The first part of this admirable essay appeared in July

ARENA.

First would be the stability and practical uniformity of rates now

impossible, as they are subject to change by hundreds of officials,

and are often made for the purpose of enriching such officials. State

and federal laws have had the effect of making discriminations less

public and less numerous, but it is doubtful if they are less

effective in enriching officials and their partners, although it may

be necessary to be more careful in covering tracks. That they are

continued is within the cognizance of every well-informed shipper, and

are made clear by such cases as that of Counselman and Peasley, now

before the United States Supreme Court. Counselman and Peasley--one a

large shipper and the other a prominent railway official--refused to

testify before a United States grand jury upon the plea that to do so

might criminate themselves; the federal law making it a criminal

offence to make or benefit by discriminating rates. Counselman had

been given rates on corn, some five cents less per hundred pounds than

others, from Kansas and Nebraska points to Chicago.

The outrageous character of this discrimination will appear when we

reflect that five cents per one hundred pounds is an enormous profit

on corn that the grower has sold at from eighteen to twenty-two cents

per one hundred pounds, and that such a margin would tend to drive

every one but the railway officials and their secret partners out of

the trade, as has practically been the case on many western roads.

Doubtless such rates are sometimes made in order to take the commodity

over a certain line, and there is no divide with the officials; but

the effect upon the competitors of the favored shipper and the public

is none the less injurious, and such practices would not obtain under

national ownership, when railway users would be treated with honesty

and impartiality, which the experience of half a century shows to be

impossible with corporate ownership.

Referring to the rate question in their last report, the Interstate

Commerce Commission says: "If we go no farther than the railroad

managers themselves for information, we shall not find that it is

claimed that railroad service, as a whole, is conducted without unjust

discriminations."

"If rates are secretly cut, or if rebates are given to large shippers,

the fact of itself shows the rates which are charged to the general

public are unreasonable, for they are necessarily made higher than

they ought to be in order to provide for the cut or to pay the

rebate."

"If the carrier habitually carries a great number of people free, its

regular rates are made the higher to cover the cost; if heavy

commissions are paid for obtaining business, the rates are made the

higher that the net revenues may not suffer in consequence; if

scalpers are directly or indirectly supported by the railroad

companies, the general public refunds to the companies what the

support costs."

The Commission quotes a Chicago railway manager as saying: "Rates are

absolutely demoralized and neither shippers, passengers, railways, or

the public in general make anything by this state of affairs. Take

passenger rates for instance; they are very low; but who benefits by

the reduction? No one but the scalpers.... In freight matters the case

is just the same. Certain shippers are allowed heavy rebates, while

others are made to pay full rates.... The management is dishonest on

all sides, and there is not a road in the country that can be accused

of living up to the interstate law. Of course when some poor devil

comes along and wants a pass to save him from starvation, he has

several clauses of the interstate act read to him; but when a rich

shipper wants a pass, why he gets it at once."

From years of ineffectual efforts on the part of State and national

legislatures and commissions to regulate the rate business, it would

appear that the only remedy is national ownership, which would place

the rate-making power in one body with no inducement to act otherwise

than fairly and impartially, and this would simplify the whole

business and relegate an army of traffic managers, general freight

agents, soliciting agents, brokers, scalpers, and hordes of traffic

association officials to more useful callings while relieving the

honest user of the railway of intolerable burthens.

Under corporate control, railways and their officials have taken

possession of the majority of the mines which furnish the fuel so

necessary to domestic and industrial life, and there are but few

coalfields where they do not fix the price at which so essential an

article shall be sold, and the whole nation is thus forced to pay

undue tribute.

Controlling rates and the distribution of cars, railway officials have

driven nearly all the mine owners who have not railways or railway

officials for partners, to the wall. For instance, in Eastern Kansas,

on the line of the St. Louis & San Francisco Railway Company, were two

coal companies, whose plants were of about equal capacity, and several

individual shippers. The railway company and its officials became

interested in one of the coal companies, and such company was, by the

rebate and other processes, given rates which averaged but forty per

cent. of the rates charged other shippers, the result being that all

the other shippers were driven out of the business, a part of them

being hopelessly ruined before giving up the struggle. In addition to

gross discriminations in rates this railway company practised worse

discriminations in the distribution of cars; for instance, during one

period of five hundred and sixty-four days, as was proven in court,

they delivered to the Pittsburg Coal Company, 2,371 empty cars to be

loaded with coal, although such company had sale for, and capacity to

produce and load, during the same period, more than 15,000 cars.

During the same time this railway company delivered to the Rogers Coal

Company, in which the railway company and C. W. Rogers, its

vice-president and general manager, were interested, no less than

15,483 coal cars, while four hundred and fifty-six were delivered to

individual shippers. In other words, the coal company owned in large

part by the railway and its officials was given eighty-two per cent.

of all the facilities to get coal to market, although the other

shippers had much greater combined capacity than had the Rogers Coal

Company.

During the last four months of the period named, and when the

Pittsburg Coal Company had the plant, force, and capacity to load

thirty cars per day, they received an average of one and a fourth cars

per day, resulting, as was intended, in the utter ruin of a

prosperous business and the involuntary sale of the property, while

the railway coal company, the railway officials, and the accommodating

friends who operated the Rogers Coal Company, made vast sums of money;

and when all other shippers had thus been driven off the line the

price of coal was advanced to the consumer.

On another railway, traversing the same coal-field, the railway or its

officials became interested in the Keith & Perry Coal Company--the

largest coal company doing business on the line--and here the plan

seems to have been, in addition to the manipulation of rates, to

starve other mine operators out, and force them to sell their coal to

the Keith & Perry Company, by failing to furnish the needed cars to

those who did not sell their coal to the Keith & Perry Company at a

very low price.

When the Keith & Perry Company had a great demand for coal, such

parties as sold the product of their mines to that company were

furnished with cars, but for the other operators cars were not to be

had, such cars as were brought to the field being assigned to such

parties as were loading to the Keith & Perry Company, because that

company furnished the coal consumed by the locomotives of the railway.

One operator, after being for years forced in this way to sell his

product to the Keith & Perry Company, or see his several plants stand

idle, has, in recent months, been obliged to build some seven miles of

railway in order to reach four different roads, and thus have a

fighting chance for cars, although all these railways are provided

with coal mines owned by the corporations or their officials.

In Arkansas, Jay Gould, or his railway company, own coal mines and the

coal is transported to the neighboring town at low rates, and there is

an ample supply of cars for such mines; but the owners of an adjoining

mine are forced to haul their coal some eighteen miles to the same

town in wagons, as the rates charged them over Mr. Gould's railway are

so high as to absorb the value of the coal at destination.

Not only are individuals thus oppressed, but for reasons which only

the initiated can fathom there are seemingly purposeless

discriminations against localities, as shown in the following extract

from the _Coal Trade Journal_ of March 25, 1891.

"Capt. Thomas H. Bates, before the railroad committee of the

Colorado Senate, said: The Grand River Coal & Coke Company

mine their coal in Garfield County, about fifty miles west

of Leadville, and all they sell in Denver, Colorado Springs,

and Pueblo, has to be hauled through Leadville. At Leadville

the individual consumer has to pay $7.00 per ton for this

coal, while in Denver, with an additional haul of 150 miles,

the coal from the same mines is delivered to the individual

consumer for $5.50 per ton. The Colorado Coal & Iron Company

produce all the anthracite coal sold in Colorado. It is

mined at Crested Butte, which is 150 miles nearer Leadville

than Denver, yet this coal is sold in Leadville for $9.00 to

the individual consumer, while the same coal is hauled 150

miles farther, and sold to the individual consumer for an

advance of twenty-five cents per ton over the Leadville

price, and is sold in Denver for $7.10 per ton in carload

lots."

With the government operating the railways, discriminations would

cease, as would individual and local oppression; and we may be sure

that an instant and absolute divorce would be decreed between railways

and their officials on one side, and commercial enterprises of every

name and kind on the other.

There are but three countries of any importance where the railways are

operated by corporations permitted to fix rates, as in all others the

government is the ultimate rate-making power: these are Great Britain,

Canada, and the United States; and while the British government

exercises a more effective control than we do, there are many and

oppressive discriminations, and complaints are loud and frequent, and

English farmers find it necessary to unite for the purpose of securing

protection from corporate oppression, as is shown by the following

from the Liverpool _Courier_ of January 29, 1891.

The Arena, Volume 4, No. 21, August, 1891 · 第 7 / 34 题