The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1873-09-26
From Old and New.
Farmers and Railroads.
BY EDWARD SrANwooD.

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first place, If the price Of grain transportation
Is in question, we must know whether the
company has an opportunity to do large bust
ness taking all branches together, and particu-
larry whether there is large amount OF grain
to be carried. Again, we must know whether
at the point OF shipment the business is large
or small Thirdly, we must be told whether
the freight is TO be carried through, or only
locally. These are the main points to be de-
cided, but there are others hardly less impor-
tant. OF course, the question OF capital is to
be considered, to some extent, but distinction
must be made. which we mention here, although
it interrupts our line OF thought for moment
The corporations have right to charge price
that will yield fair return on their capital
actually paid in. They have no right to make
the public pay the same dividends on their d.
luted stock they might reasonably demand on
their legitimate investments. How 10 this rate
70 be ascertained? Perhaps 1t cannot be &C
curately determined but an approximation can
be made All roads keep an account of gross
receipts and gross expenditures. The net earn
ings vary, somewhat, but 1t would be easy, by
taking an average Of dozen roads whose stock
was not watered, Of character as nearly as
possible like that OF the road under exanina-
ton, to ascertain what should be proper pro-
portion Of net earning to gross receipts. and
the excess would be measure Of the extortion
practiced. Or, it could be determined what
would be asfair amount OF net earnings to
mile of road, and the excess would again be the
measure OF the extortion.
1t follows, necessarily, from what has been
said, that railroads ale not all alike any more
than men are. Some companies have abused
their privileges shamefully, and deserve not
merely punishment but extinction. If it were
in the power Of any legislature to condemn
them to death. Others have obeyed not only
the law but the dictates OF pure consciences.-
They have neither been extortioners, nor cor
rupters OF the public morals. But the good
ness of the few,-or of the many, il you will
is not 30 much Of an argument as some rail-
way managers appear to think it. Honest mon
are included with rogues in the legal prohibi-
ton of theft and the law against murder Is
for the mildest tempers as well as the most
violent. 1t is, therefore. not forcible argu-
ment against general law prohibiting extortion
that some railroads have never practiced it.
These facts will help us in considering the
question Of rates at competing points" In
the first place, such points are usually at the
outset or very soon grow to be, important
stations and places Of large shipment. They
partake more than way stations do Of the
character OF terminal points, even if they are
not 80 in fact. All these considerations tend
to make rates low, even though there were not
the additional reason that two roads are en-
deavoring to get the came business, and lower
their charges in order to do 30, Now there is
new distinction 70 20 made, by which it vii.
be seen that there may be fair discrimination
at competing points, as well as unfair. II, for
instance, it is forty-elght miles from A to B
aud fifty from A to G, on one line, and forty
miles only from to G by another line, it is
difficult to see who is injured by the first named
road offering to take freight between and c
as cheap rs the second, and cheaper than its
rates between and b. IL yives the people OF
A and G two routes, but the onger one will al
most never be used. unless tue shorter is badly
managed. 1t may be that the first line could
not do the through business at It's rates, except
at loss. Very we'll in nine cases out Of ten
it cannot get 1t at all. 1t merely makes on offer
that is not accepted, or accepted TO 20 small an
extent that the result does not greatly affect
the revenues or expenses OF the road making it.
B has the misfortune to be at a greater distance
from A than G is,-by the short line which sets
IL 10 hay bod M laI
the short line had not run to c, and Ii suffers
in no way from the favor showed toits neighbor.
On the other hand, if the distance between the
two common points is not materially different
by the two lines, and real competition is keen
between the companies, it may, and often does
ia practice, happen that rates are put down to
a point where neither line can make any money.
They snatch the trade at whatever they can get
for it, The business is carried on at positive
loss. from sense OF pride, OF from desire to
crush out a rival. Then the other stations on
the two lines do suffer. They are compelled to
paw higher rate IN order that tue dividends
may be made good and IL it happens that the
road they have 10 deal with is one OF the water
ed lines, they suffer seriously by the extortion.
! luz EIcdItt EdIt u tuC on
roads does come from the local stations. and
Tor them 1t il vital question. whether they
must paw interest on capital that has been
created out OF nothing.
The exceeding difficulty OF enactIng law
that rhall prevent unjust and improper dir-
ordinations without interfering with necessary
and proper distinctions, is obvious at glance.
Whether 1t is WISE, in such a dilemma, to pro-
hibit all determinations, it is not the province
Of this article to discuss.
The self-lnterest of railroad corporate ons
does lead them to some extent to reduce their
rates generally from year to year. And this is
true not only OF the eastern railroads. Of which
there is less complaint, but of the western
roads as we'll. a few figures on this point will
be instructive. We take the reports OF three
lines leading out of Chicago to the west and
south, made to their stock holders and printed
in Poor's Manual for different years. These
reports were not, therefore, made for the pur.
pose Of proving innocence Of the present
charges against the corporations.
The average charge per ton per mile on the
Chicago, Rock Island and Pacific road in 1862