"Has not the time come for a reversal of the legislative attitude? Would it not be well for Congress, State legislatures and the judiciary to cease their futile attempts to maintain unqualified freedom of competition, and substitute therefore a recognition of the right of every industry to combine under proper supervision, and to make agreements for the maintenance of just and reasonable prices, the prevention of the enormous wastage consequent upon warlike conditions, and the preservation of existing institutions through the years to come?"
Mr. Walker then proceeds to make the bold prediction that revolution and anarchy will follow if the demands of the railroad corporations are not complied with, saying:
"Unless this course is adopted a social convulsion may fairly be apprehended, forced by the universal and necessary repudiation of existing laws and rules of decision, and by the general formation of combinations without their pale."
This is a strange threat indeed, and unworthy of a man who has held as great a public trust as Mr. Walker has. The article also contains the statement that combinations do not extinguish competition. "They regulate it," says Mr. Walker, "with more or less efficiency, and they often go so far as to suspend its operation in respect to one or more important features of the strife; for example, the price paid or the time consumed. But as long as the employer or the purchaser has a choice, so long there is competition." Here is a sample of Mr. Walker's irony, for the choice which the shipper has under the pool is simply Hobson's choice.
Mr. Walker has also an article in the August, 1892, number of the Forum, the substance of which is to show that organizations among railroad companies, like the Western Traffic Association, are necessary for the purpose of restraining competition among them. He holds that such competition as exists in almost all other lines of business "is radically vicious to all interests, however pleasant and desirable it may seem to self-styled anti-monopolists," and that "it is a calamity not only to the owners of the roads, but to the public also."
According to his statement, the Traffic Association is simply a little innocent and inoffensive organization whose duty it is only to maintain rates, and he sees nothing wrong in allowing a few representatives of corporations to meet in secret and discuss, scheme and levy such a tax upon the commerce of this country as may suit their convenience; and he regrets that their attempts are "hampered by legislation which forbids the formation of pools." In other words, he proposes to have the case in court decided by a jury made up entirely of the parties at interest in the case. This piece of effrontery is about on a par with the average argument of this class of pleaders.
Suppose we apply the same rule to other classes. Take the farmers, for instance. Let them have an organization for the purpose of maintaining rates, with their representatives meeting in secret and fixing the price of their produce and asking the Government to enforce their orders, pools and edicts, so as to afford them relief from selling corn at ten cents per bushel, beef and pork at a dollar and a half per hundred, and hay at two dollars per ton, and their other produce at proportionate rates. Who would condemn such an organization more severely than the advocates of the Traffic Association? They never find terms sufficiently expressive with which to condemn the Farmers' Alliance and other kindred associations, which are organized solely for the purpose of lawfully correcting existing abuses and of forming a wholesome public sentiment.
It is evident that some progress is being made upon this question, as Mr. Walker admits that "the fortunes which have been made are seen to have been the result of dealings in stocks and in titles, the consequences of which, if involving wrong, are rightly charged against the lax legislation which has made such operations possible." "Every person seeking for the services of a common carrier is entitled to know that he is charged no more than his neighbor who obtains the same service under the same conditions." "The theory that any unjust discrimination or unjust preference or advantage in respect to individuals, communities or descriptions of traffic must be suppressed by the State, has become firmly lodged in legislation." This improvement in the sentiment of railroad men is gratifying.
This gentleman, as has already been stated, was for several years a member of the Interstate Commerce Commission, a board created by Congress for the special purpose of enforcing the law which he so unreservedly condemns. No doubt Mr. Walker performed the duties of his office as he understood them; but if he held then the views which he holds now, his work must have been a hindrance rather than a help to the commission.
Among financial journals, so many of which are devoted to the support of vicious and demoralizing methods, and are ever ready to defend whatever is bad in corporation management, it is refreshing to find occasionally one that exposes abuses and favors the earning of legitimate dividends, and it is a pleasure to quote the following from the June number, 1892, of the Banker's Magazine: