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WHEN STREETCAR MONOPOLIES in Portland and other cities around the nation found themselves competing with hundreds of private motorists picking up a little extra drinking money at their expense, they naturally turned to their local city governments with demands that this behavior be stopped. Their case was a textbook argument from a licensed monopoly: Their deal with the city required them to run many different lines, some of which lost money and some of which made money. The winners offset the losers. Now, they cried, here came these jitney-driving jackals to “skim the cream” off the lucrative routes, leaving them with nothing but the losers. It wasn’t fair — it was unfair competition. And if it were allowed to stand, they claimed, they’d have to cut back service. In other cities around the west, this claim resonated strongly. Cities like San Francisco and Los Angeles laid down expensive licensing laws and specious requirements. Then they put their police forces on the job, performing sting operations and writing fat tickets to unlicensed jitney drivers. In Portland, though, the jitney drivers — who had wisely formed an AFL-affiliated labor union just as soon as they realized which way the wind was blowing, much to the dismay and consternation of the streetcar company’s friends at the Morning Oregonian — had a key friend in City Councilor Will Daly. Daly was, unusually, a union officer who had gone into business successfully for himself, so he was both a union man and an enlightened employer, and he made the jitney drivers’ case in terms that were hard for an honest conservative to argue with. How, he asked, was it appropriate for the city to take action to squelch a cadre of entrepreneurial small-businessmen in favor of a bloated, centrally-controlled, government-sponsored monopoly that could simply raise its rates if the jitney drivers took away too much of its business? As a result, Portland’s jitney drivers got to stay on the road much longer than others, and their licensing requirements were much less onerous. But the Portland Morning Oregonian — motivated both by publisher Henry Pittock’s personal hatred for Daly, and his sympathy for the high-rolling capitalists whose pocketbooks were being impacted by what they saw as illegitimate competition from cream-skimming peons — never stopped fulminating against the jitneys, relentlessly calling them (and Daly) socialists in blithe defiance of the dictionary definition of the term and decrying their business as unfair. And as for claims that jitneys presented “unfair competition,” Daly’s response was equally brilliant. Of course it was unfair, he said. “Where has there ever been competition that is fair?” he added. “Competition means survival of the fittest; there is nothing fair about it.” Left unspoken, but surely understood, was a follow-up question: Whose position here is really a socialistic one? The backers of a government-sponsored transportation monopoly, or the backers of a diversity of individual small businessmen competing in an open marketplace? That difference is also why the comparison with Uber and Lyft doesn’t quite work. Uber and Lyft are centrally controlled systems, more like a distributed version of the streetcar company than like the jitneys that once so vexed them. And the taxi companies, although few of them are one-car operations owned by the drivers, are locally-owned businesses like the jitney drivers were. And like the jitney drivers, it seems pretty likely that they will lose their fight with the smooth, well-financed ride-sharing services. In the case of the jitneys, the coup de grace that took them out was the outbreak of the First World War. In the years leading up to it, competition from the jitneys inspired the streetcar company to upgrade its service substantially. When the war broke out, most jitney drivers found they could make a lot more money helping build ships, tents, cots and other supplies for the war effort. Their jitneys fell into disuse and they joined the throngs aboard the streetcars. By the end of the war, stiff regulations had been put into place. The city’s nascent taxi services were able to roll with the regulatory punches, but most jitney drivers found they could no longer make a living collecting nickels, and shut down for good.
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