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The Columbia University Libraries reserve the right to refuse to accept a copying order if, in its judgement, fulfillment of the order would involve violation of the copyright law. Author: Chandler, William Eaton Title: Letters against the $3,000,000,000 railroad Place: [n.p.] Date: [1895] ^^-^5a\3-7 MASTER NEGATIVE # COLUMBIA UNIVERSITY LIBRARIES PRESERVATION DIVISION BIBLIOGRAPHIC MICROFORM TARGET ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD Business D530.3 C36 Chandler, Ifilliam Eaton, 1835-1917- Letters against the /fs, 000, 000, 000 railroad trust and pooling agreement. clSSSa c^a p. 1. Railroads - Pools. Z. Railroads - Rates. RESTRICTIONS ON USE: TECHNICAL MICROFORM DATA FILM SIZE: ^^VY\YY^ REDUCTION RATIO :_to IMAGE PLACEMENT: lA @ IB IIB DATE FILMED: ^aiAa INITIALS: TRACKING # : M^S^ 02^310 FILMED BY PRESERVATION RESOURCES, BETHLEHEM. PA. > CO s?A O 3 3 j^/ s^/ (a) en 3 3 0) CT CT ABC cdef ^^ Too — m '^^^ "^"^ =-o IS Si 3 X IJKLM nopqr CO ^ OPQR uvwxy OPQ uvwx N en ^ ^ J:t-i N C/) N)r- »-'— 1 uvw 2345 CT>X OOM ox ^ ^-< o C»M (X> o en 3 3 > CD o m CD O ^ o o 00^ -D < X CO M o^ e-^ O o 3 3 o 3 3 % ^^ ^^' ^cr k^p k^^ o o I^t3 ^ ?^ fc .^^ o^ = g bo N3 ^fo & fe 2.0 mm ABCDtFGMUKLMNOPQHST UVWXY2 abc(Mghi|klninopqrstuvwKy;l?34567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyzl234 567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 1234567890 o o "0 m Tj > C CA X TJ ^ m o m *f^A 2.5 mm ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 1234567890 <« r^^ •^r « ^ •^ IS) lO Ol o CJI 3 3 3 3 3 3 J2C IS °i 8 ^-^^. o m cn:3 2 ^ O X < ■< ISI Columbia ©nttiersiftp tntftfCitpof3^fttig0rk THE LIBRARIES SCHOOL OF BUSINESS I I LETTERS AGAINST THE $3,000,000,000 Railroad Tmst and Pooling Agreement. BY SENATOR CHANDLER. • • • • « • • I • • i • « I - • « * « 1 » C COCi^Oxji-S* Concord, N. H., Oct. 9, 1896. Hon. Wm. R. Morrison, Chairman op THK Interstate Commerck Commis- sion. Sir: — In response to my letter of in- quiry of the 30th ult. I have received your letter of the 3d inst. and also a letter from Mr. Commissiotier Knapp, dated on the 5th inst., stating that the interview with him published in the Syracuse Post of August 20th, is a Bubstantislly accurate report of what he then said, for which he i8 solely responsible. An interview like that of Mr. Knapp goes to the world, if uncontradicted, as the views of the whole commission and has substantially the same effect as if formally issued by the chairman. This interview ia a most surprising pronuncia- mento. It contains only two points, and no single word not confined to one or the other point. The two points are That if the new trunk line agreement is a violation of the anti-pooling law, it is a criminal misdemeanor with which the Interstate Commerce Commission has nothing to do; and further that nothing has been done by the Trunk Line associa- tion which calls for action by the com- mission or would furnish it with a pre- text even for investigation. II. That the Trunk line presidents are only making an agreement to adhere to their published rates and to refuse to give fa- vored shippers lower rates than they give other shippers; and are to be commended for making it. To the first point it is to be replied that, if it is true, the public and the railroads had better join immediately in abolish- ing the useless and worthless commission. It will be a mere supernumerary statistical bureau; or worse than that, a superserv- iceable tool of the railroads to help them hoodwink and oppress the people. But it is not true. The Interstate Com- merce statute provides that any act by a common carrier or its officers or agents done or permitted or omitted contrary to the law shall be a crime. It also provides that upon complaint of any person or cor- poration, or of the railroad commission- ers of any state or territory. the Interstate Commerce Commission shall investi- gate any violation of the law, and make an ordercompelling the criminal to desist; and if the order is not obeyed the Com- mission is to obtain a decree of a United States court compelling obedience. Sec- tion 13 also provides as to such investiga- tions as follows: "'Said Commission • * •* may institute any inquiry on its o.vn motion in the same manner and tc tho same effect as though complaint had been made." This is a very plain tale. EithorCoui missioner Knapp knew or did not know these provisions of law. If he did not, he ought to be removed for ignorance. If he did, he ought to be removed for willful falsification. As to the second point: It is the per- sistent trick and deception practiced by the advocates of the abolition by congress of all railroad competition. Everywhere the railroad mercenaries are crying out that the companies ought to be allowed to prevent the cutting of rates in favor of large shippers against small shippers. f course they ought. It is a crime for t hem to do it. Each company is com- pelled by United States law to flxand pub- 1 ish its rates and to carry for all shippers at those rates, no more and no less. Each company may loudly proclaim that it will obey this law and all the presidents of ail the companies may get together on Mr. J. Pierpont Morgan's yacht,the Corsair.or anywhere else and verbosely resolve that they will all obey this law, and not accept from A and B less than their published rates while they charge X and Y their full published rates. Nobody objects to their doing this. Everybody will praise them for doing this. But what in the nameof common reason- ing kas the argument that they should be allowed thus to obey one law, to do with the claim that they shall be allowed to disobey and defy another law? They may lawfully combineand confederate as much as they please to compel every road to ad- here to Its published rates to all shippers. They cannot lawfully combine and con- federate to prohibit any road from lower- ing its published rates to all the world. They may swear and combine with each other that every road shall charge A and B the same rates that are charged X and Y, for that is the law. But they cannot conspire and contract together that no road shall reduce its rates to A and B, also to X and Y as well, for that is an unlaw- ful trust and combination, and a crime. It is not necessary to enable them to obey one law that they should disobey another law. It is not necessary that they should be able to prohibit every road from ever lowering its rates lawfully to every- body, in order to keep all the roads from lowering them unlawfully to a favored few. It is not necessary that they should combine to keep rates from being ever lowered to A and B, to X and Y alike in order that they may keep them from being lowered in favor of A and B while they are kept up against X and Y. It is not necessary that all competition among railroads shall be destroyed in order to prevent discrimination between individ- uals as to the rates charged for the same or similar service. The distinction I make ought to be clear enough even to the comprehension of Commissioner Knapp. Yet the railroads continue to harp upon the same string. "We want to stop discriminations. We want to protect small shippers." "Well, why in the name of decency do you not do this? Such discriminations are crimes. Agree and combine to stop them and the whole national government m&chinerj' will be at your service to aid you to stop them." "Oh, but we will not do this un- less you will allow us to abolish all rail- road competition whatever; and prevent .any one railroad from lowering its rates ■ !tO the general public without the consent ;of.«road managers for the small ship- perj, '^tLe nv.>n of small capital, the firms of little mfedns, composed generally of young men, whose friends, believing in their energy, enterprise and honesty have advanced the money that they may go in- to business." "Just see the frightful com- petition they have to contend with." '•Every business will be in the hands of a strong, consolidated organization which Q en en we call a trust. It will destroy all op- portunity for independent energy or com- petition or foi that rise of young men which we have boasted has been one of the great opportunities of this country." What is the remedy proposed for this sad case of the small-young-men-shippers of merchandise, who the kind and pity- ing railroad managers say are so much in dnnger of annihilation by trusts? It is to allow the wolves to eat the lambs in order to protect them from being worried by an occasional dog. Nine great railroads from the West to the seaboard, with f3,000,000,- 000 capitalization, are to be permitted to consolidate their business ;to abolish com- petition by their own agreement; to sub- mit the rate making power to nine govern- ors; to enforce their huge pooling con- tract by a clearing house and money pen- alties; and to establish — indefianceof ex- isting law or by virtue of a new law the justification of which the congressmen who vote for it are to attempt to make in the election canvass of 1^6. — the most stupendous trust the world has ever seen! Go to, Mr. Chairman. This trust is not to be created if you and President Cleveland can prevent it. The facts of the trust, you unthinking- ly said, you did not know. But Attorney- General Harmon and Commissioner Knapp say they know all about it, and that it is good. Find out the facts from them, and the clear vision of yourself and the president will tell you that it is evil. It is a violation of the anti-trust law as well as the anti-pooling law. Neither law contemplates your waiting till the crime is committed; both laws provide for effectual preventive measures. It is not yet consummated. Mr. Morgan, the governor of the nine gov- ernors, hesitates, doubtless already influ- enced by gentle and judicious presiden- tial remonstrance. The president and yourself will not fail to crush this in- iquity in the bud. You are both famous popular tribunes. Will you take the re- sponsibility of fastening this f3,000,ODa,033 yoke upon the necks of the people; and yet appeal to them for support in conven- tion and at the polls in 1896? Very respectfully, W. E. Chandler. shippers, will get lower rates than the companies wish to give them. They are determined, law or no law. to make an agreement in two parts : Concord. N. H., Oct. 10th, ls95. To THK Editor of the Manufacturer : In your article of Sept. 28, headed "Railroads and the People," you com- ment fairly upon the railroad claim, made to justify pooling, that "small shippers will have stable rates assured to them." But you do not sufficiently develop the point that the argument in favor of pool- ing based upon the right of small shippers not to be charged more than the large shippers, is a mere non sequitur of the railroads. The companies can stop fa- voritism to special shippers whenever they choose to make an honest effort to do so. Such discriminations are crimes; and the railroad managers can assemble with perfect freedom and agree to detect, expose, punish and prevent the crimes. Nobody will find fault, everybody will praise them for aoing this. The railroad presidents, however, are not shedding tears because the small shippers are paying higher rates than the large shippers! They are worrying for fear that, through competition, all the public, both large shippers and small I. That each railroad shall maintain its published rates to all shippers. II. That no railroad shall lower its rates to all shippers without the consent of the nine governors who are to represent all the roaas. The second part, however, is all they are really seeking, and they put forward the arguments for the first part only as a blind to deceive the people. There is no need oi a formal agreement cov- ering the first part. Let the rail- road managers simply obey existing law, and abstain from crimes to prevent and punish which the whole power of the state and national governments is at their command, and there will be no railroad discriminations; no higher rates to one shipper than to another, and no bribery by free passes. This second part of their agreement, which is all they care at)out, is extremely atrocious. It creates a f3.000,000,000 1 rus't in restraint of commerce, it abolishes all competition among American railroads. Are the people of the United States ready for this? If not, they should arouse themselves, for the monstrum horrendum is opening its devouring jaws. The deceptive character of the claim of the railroad managers that they cannot stop discriminations without the aboli- tion of competition is discussed by me in a letter to the interstate commerce com- mission dated Oct. 9, a copy of which I send to you. For the prevention of the crime medi- tated ana almost consummated by the rail- road presidents the people have a right to rely upon the enforcement of the ample laws against trusts and pooling, by the interstate commerce commission and President Cleveland. But the suggestion you make that the railroad compHnies re- gard the interstate commerce commission with something like contempt is auite true. This is not the fault of the law; it is the fault of the commission itself, which is a mixture of good and bad in equal proportions. Its apparent imbecil- ity in the presence of the imperious mag- nates of the pooling agreement, uow going on to completion in defiance of ex- isting law, would be ludicrous if its in- jurious results to the people whom it has been selected to serve, did not make it calamitous. Commissioner Morrison says he knows nothing about the agreement, and has no means of finding out! Commissioner Knapp says he knows all about it. and that it is praiseworthy and commendable! Attorney General Harmon says he pre- sumes it is in accordance with law! So weakness or wickedness allows the. public to be oppressed. Our only hope to pre- vent the triumph of the iniquity is in President Cleveland. His banker friend, Mr. J. Pierpont Morgan, is at the head of the $3,000,- 000,000 pool. The president will stop him and his railroad associates if remon- strance will do it. If it will not do it, we know well enough that the president, if he gets aroused, will cause the indictment of all the railroad presidents the moment I they sign a pooling agreement. Tiiat in- dictment is what is likely to happen to them if they violate the law instead of askint; congress to change it; which con- gress, however, will not do in the year 1896. Yours Respectfully, Wm. E. CHANDL£R. Concord, N. H., Oct. 12, 1895. To The Presidknt: Sir:— The New York Times of yesterday states clearly what the nine Railroad rov- ernors and Mr. J. Pierpont Morgan are doing. The proposed crime against the anti-trust and anti-pooling laws is a pub- lic fact as distinct and evident as the Cuban rebellion, which your attorney- general eagerly labors to suppress. All the competing railroads, with their 13,000,000,000 capitalization, are to agree that no one road shall reduce its rates to the public without the consent of the nine governors of all the roads. This is a con- spiracy in restraint of trade and com- merce; and a crime according to the act of July 2, 1890. n. Each company agrees to deposit in the beginning and from time to time por- tions of its earnings with the nine gov- ernors. These earnings are to go back to the company if it continues to commit crime; but if it obeys law it is to lose the earnings, and they go to the other roads which continue steadfast in crime. This is a division of earnings forbidden by section 5 of the interstate commerce law. III. Of course, like all great wrongs, these have their subterfuge and false pretence. The fraudulent deed in Twyne's case was carefully made to recite that it was done in good faith; we invaded and despoiled a neighboring nation falsely declaring tnat war existed by the act of Mexico; England attacks Venezuela to maintain the integrity of boundary lines; France conquers Madagascar, and Spain subju- gates Cuba to give peace and liberty to the people of those islands. The American railroad conspir- ators expressly say their only motive is to delect and punish violators of the In- terstate Commerce law. to protect small shippers from discriminations and to "act in harmony with the Interstate Commerce commission!" According to present ap- pearances they have swallowed that com- mission, and will soon devour unhin- dered the substance of the people. The lambs will soon be inside the wolves, who leap forward as their kind and helpful guardians. But Mr. President: These stupendous crimes can by virtue of express statutes of the United States, be suppressed in advance by national officials subject to your orders. Indeed, a single word from you to Mr. J. Pierpont Morgan will cause these confederates to desist. Will you act or will you take the responsibility of consenting as you will by inaction to a conspiracy against law which is within a few weeks, as soon as the elections are over, to raise the prices of food and fuel to all your beloved people. "Heshall take care that the laws be faithfully executed." Thou art the man. Very respectfully, WM. E. Chandler. %- ,;»»MiiirfiBriw iif •' yir"«.'- f GAYLAMOUNT PAMPHLET UNDER ManufaOund h 6AYLORD BROS. Int. ' SyracuM, N. T. ^ Stockton, CbW- ^1 fin " ^''>' COLUMBIA UNIVERSITY LIBRARIES ::^^ — -t 0041406990 COLUMBIA UNIVERSITY LIBRARIES This book is due on the date indicated below, or at the expiration of a definite period after the date of borrowing, as provided by the library rules or by special arrangement with the Librarian in charge. DAT! BONROWCO DATE DUE DATE BORROWED DATE DUE C2a (449;M50 1 I D D550.5 C36 '/ C36 D530.3 Chojidler, VfnuS ^ Letters Against the 3 ooo ooo ooo i Hailroe.d Trust Pooling Agreement JA291949 .V •<4 ' f .J.-*.; ^^. « *wri^ ^j r«-4 •fi'v-i,';-*' 1^-'i.: mS m ''■'%''-' •« ./< T ^ 5,^ ? %■{• '?■•;- '1^ iM'- ti ''■^' ^it. P aS \W VA t-y^f W J 'V>, '.rys i.t^i. ..«•! rtLif' t-: 4 ,!#&££ 4f WW1 fe^*. ,t^^ ^-lH' S '^. f^j5*tt s&^^yij-^i-w;' Ky >?i: END OF TITLE