, 1873-06-15
THE RAILROADS.
The New Passenger and
Freight Tariffs.
How the New Law Affects the
Chicago Roads.
Knotty Questions with Which the Agents
Are Wrestling.

Since the passage Of the new 1aw to regulate
Passenger aud freight tariffs ON railroads, the
Interested managers have had several confer
.nceg From the first, the general sentiment
sas in favor of endeavoring to comply with the
requirements Of the law. Its constitutlonality
sas not unquestioned. but prudent economy
suggested it would be better to accept its most
anreasonable terms rather than risk the
heavy penalties incurred by its riolation, in
pase the Supreme Court should sustain the
nw. Community OF interest prompted
soucert Of action Il was, therefore,
1g7eod that each company should got up tariff
10 meet the varying circumstances affecting their
particular lines. and that, when prepared, gen
ernl meeting should be held to compare tariffs
And decide upon their adoption.
The Freight Agents then withdrew, to enter
apon the most difficult task ever imposed upon
Them. There we're sundry loop-holes in the Ia"
Of which they might have taken advantage, but
the prevailing purpose Was to conform to tho
spirit OF the act. AS Chicago Ia the great re-
ceiying and distributing point Of the West,
their aim was il possible, to afford
shippers far and near the easiest
and most ayailable means Of transit to and
from this city. With the Chicago and
Northwestern Railway this was not very diff
cult problem to solve, because from every point
reached by t,uithin this State it is the shortest
route to Chicago. 4 distance tariff could, there
fore, be pro6tably made. But with the North
and South roads the case ia quite different
Every dozen miles or 80 they are crossed by
through Eastern lines. Take the case OF the
Chicago Alton Railroad. At Bloomington it
is intersected by the Indianapolis, Bloomington
{; Western and the Lafayette, Bloomington
e Mississippi Railroads, either Of
srhich Companies make the same rate
through from New York to Bloom
ington that is made by the Alton Railroad via
Chicago The l.tter being the longest, the
short lines will be enabled, under the operation
Of the new pro rata law, to make lower rate
and thus take all the business but they can
maintain the 1ate just as high as will bring it d
trife pnder the rate established by the long
road. This will BIS discrimination with ven-
geance. under the operation OF q law especially
est road entirely out Of tho competition and
place it utterly at the mercy OF
tAs short route, For, rather than
loser the general tariff OF the road
sufficiently to meet this competihon and bring
ing it, at intermediate stations, to merely nomi-
nal figures, the companies will prefer to aban-
don the business at competing points and make
up the deficiency it's loss will entail by advancing
the local rates.
The General Freight Agent OF the Alton
Road proposes to charge for business received
at competing points and consigned to his local
stations the same rate that would be charged
from Cbicsgo. This policy would violate the
spirit Of the new Law, but he proposes to eyade
the penalties Of its infringement by Of
fering to take car loads at 20 and 50
per cent lesB than gular rates for first, second,
Ihird, and fourth class freight, and will offer
9lns advantage to any one who can ship By car
toRa- The result will be that, it shipper at
Springfield Is able to patronize the road By the
carload, and man at Lexington or any point
80 OF 100 miles nearer Chicago cannot ship like
quantity, the latter will bs compelled to. pay d
higher rats for lesser distance than the heavier
shipper for perhaps double the distance. And
their iustifiable excuse will be grounded On the
wording Of the law prescribing That for 'slke
quantities." etc., q greater charge shall not be
made for q lesser distance than for greater.
The north and south roads will suffer most,
frstance, Will have 10 nDhnuon the puslnesB OF
Peoria Last year that staticc yielded the Com
pany S30O, 900. But the T.. P " R. B. runs
u m air line ACROSS the State giving shorter
a Fill, therefore, make rate lower than the Rock
! Esland Company can afford to touch. Their
freight sgent recognizes this barren fact. and.
Ike Mr.. Smith, OF the Alton, and Mr. Tucker, Of
this deficiency by increasing the local rates Buf
hcientlv to maintain The revenue. The companies
say they cannot afford to earn less than they
have done hitherto, and that being compelled to
abandon such large portion Of their business
they would be justified in making good their
losses BY increasing the rates for short hau1s.
This policy has one serious difficulty. It the
companies suddenly advance their rates for short
distances, will not the shippers arraign them
before the courts, and be able to convince any
jury that, il the rates charged for tho past ten
or twelve years we're remuneratiye their material
advance now ia extortion?
JkTheso views may yet be modified, as none Of
tbs ta1iffs-e1cept that Of the Northwestern
Railway-a1e in print. That Company assume .
M arbitrary rate to cover the expense Of receiv-
Ing, handling, aud delivering freight at the two
stations where received and delivered The
whole tariff is then made by adding fixed rate
per 100 pounds per mile, varying according to
classification. The result is somewhat to de-
aIease the present rates and sensibly to equalize
tlen, removing many causes Of friction.
Special rates are entirely abandoned, except IN
The cases cited where shippers contract by the
nar load. Manufacturers along the several limos
enterprises by advantageous rates will
haye to grub along Is best they can. The Rail-
road Commissioners have been approached on
This point, aud they take the high, philosophical
ground that, it the manufactures cannot stand
pa their own bottoms, they had better fall; and,
In regard to the north and south lines, they ike
Wise assume that, il the lines we're not properly
located In the direct course Of trade, the people
ere not to blame for the lack OF foresight.
Ono other question has engaged the man
sgors: The effect the lay will have upon con-
tracts made outside OF Illinois. The c., B.
d O., Rock Island, Northwestern, and Hi
Dois Central Companies each have contracts
with Iowa lines crossing them north and south
BY which the business OF these cross roads is
to Chicago at 4 less car rate than
The local rhte betvoen Chicago and the Afissis-
sippi. The contracts are made outside the State.
bu: tho performance il within the State, and,
therefore, some lawyers affirm, subject to the |
law Of ths State. Others, equally yersed in legal
lore, contend that the question 1s beyond the !
Jurisdiction Of the State being Of an information
i character. Ths point made by the latter gen.
lenlen is, that. were the roads to charge |
heir regular distance rate, the business |!
would be lost to the Chicago roads. |
EIich loss would benefit nobody; where |
3, taking it 1T the best procurable |
ate. does not injuro or affect the people OF nli-
lois. while it does help tho roads BY swelling |
heir gross earnings and enabling them to trans
ort their other business at Iseeer rates. This /
osition Was affirmed, by resolution, ut the last
general meeting OF the Managers
It has been said that the roads can transport |
heir business across lows at a merely nomt nal
gure If they choose, and put on tho full ratio
+Ene +.T