Staunton vindicator and general advertiser. (Staunton, Augusta County, Va.) 1858-1860, 1858-11-20
Minimum Limits OF the Virginia Central
Railroad.

A0AlA V0Us
We have now reliable test, very easy
of application, by which we may judge Of
the correctness of the tariff of charges in
actual use, at least in one particular. We
can determine very readily, whether any
portion of the trade is carried on at an ac-
tual loss to the Company.
For this purpose, | have computed the
cost of conveyance, item by item, for every
important article and every depot, and con-
structed a preliminary tariff, showing those
charges which, at each point and for each
article, would be just sufficient to meet the
cost of transportation-leaving no surplus
for the remuneration Of the capital expended.
BY running the eye along the several
columns, and comparing the costs Of trans
portation with the actual charges. you will
find that, in numerous instances, the charges
by the tariff in use are less than the costof
doing the business; that some things are
carried to certain points for just above the
cost of carriage, while other things are
charged rates that yield fair profit.
I know the feeling which controlled tie
construction Of that tariff, and led to these
excessive reductions. It is the wish to cul-
tivate certain articles of commerce which
are thought to be very important to the
public, and which, it is supposed, can only
be induced to take the cars by holding out
special encouragement. But, / proceed
upon the assumption that there is we'll de-
fined limit to such encouragement, and that
that limit Is the actual cost of transporting
the article. In my opinion, if the Compa-
ny. in adjusting its tariff, falls below this
limit for any motive, it adopts policy very
sure to lead to unfortunate results.
If the charges were made to conform to
the table which have prepared to show the
cost of transportation, the receipts would
be large enough to keep the trains in oper-
alton, but not sufficient to repair the dam
ages due to the natural deterioration of the
works. eE
At these rates there would be no profits
to go to liquidate the interest on the debt,
or to remuneratc the capital invested in the
road. These, then, must be regarded as the
utmost limits of possible reductions of the
charges of transportation buoys which
we plant at prominent points to show where
deviations from the proper channel, in one
direction at least, will be fatal.
THE HIGHEST LIMITS; OR, PRO-
HIBITORY CHARGES.
If we charge SO much for the conveyance
Of any commodity as to prohibit its trans
portation on the road, we shall compel it tc
stay back, or drive it on some other route,
and, SO for as that commodity is concerned
be without revenue. Our next aim mus,
then be, to ascertain what is, for each point
Of receiving and discharging freight, as
nearly as it can be determined, the prosiJi.
tory charge for transportation to any other
point. 1t is certain that our toll must moi
60 above that limit. I
This prohibitory charge is, obviously, MOI
uniform, but varies much with the commod
ity, and sometimes with the seasons and
with the markets.. If the holder of the
commodity can choose, as he almost always
can, between your road and some Other
conveyance, this prohibitory charge must de-
pend upon the charges exacted upon the ri
val route, the value of the article at the
rival market, the incidental expenses ano
other advantages and disadvantages to be
encountered on this competing route. To
obtain all these facts with any degree d
precision, for all competitors ca.
nails, railroads and turrpikes-and to ON.
brace all the numerous considerations which
enter into the problem, would obviously be
extremely difficult And if all this infor
nation were really necessary, it would EN-
barrass us very much indeed to procure it
But, fortunately, we are under no neces
sity to collect and estimate the value of al
these facts The calculations are all made
for us; and the practice Of the farmer, mil.
Ter, and merchant, shows the result.
There is always, along every tributary to
your road, certain point, for each article
brought to your depot, where the aggregate
attractions which your line offers are pre-
cisely equal to those offered by the compel
ing route. This point, somewhat fuctuat-
ing at times, it is true, is the point where
the trade divides-that portion Of it which
is on this side coming to your depot, and
that portion which is on the further side
taking the opposite direction, or going a.
way from your line.
At this dividing point, say, while it
continues to be the dividing point, the at
fractions Of the opposing routes, for the. ar
tlcle in question, all things included, are
equal. For this point, then, it is easy to
obtain the prohibitory charge. For that
purpose, you have only to ascertain the ac-
tual cost Of conveying the article from the
dividing point to your depot, and then add
to that cost the actual charge upon your
own line, taken from your own tariff. The
sum Of these two quantities, the cost of
coming hither, from the dividing point to
your line, and the charge upon your line,
are the charges which together prohibit the
trade beyond that point from being brought
to your road, to be conveyed by it to the
market to which it leads. Permit me to
say, that this is no theory. It is the prac-
tace Of every customer you have.
Those who do not send their trade from
beyond that point to your road are prohib-
ate1.
Now, having ascertained the prohibitory
charge at the dividing point, together with
the cost Of coming from that point to your
depot, you can deduce at once the prohibi-
tory charge at your depot.