The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1875-12-24
DECEMBER "a
FRIDAY. .D1
Freight Rates.


Railroad Freight Rates.
Hon. W. E. Dodge, one of the most ca
pable and successful business men Of
New York City, as chairman OF a com
mittee of merchants that called on Mr..
Vanderbilt to thank him for the step Ia
ken by the roads leading West from New
York, gave expression to sentiment
that will be re-echoed by every business
man in the country. 1t was. in effect,
that the business interests do not de-
mand such extremely low freight rates
as will. cause the railroads to be run at
loss. The roads managed in the inter
est OF Boston some time ago made such
a cut on freight rates as worked greatly
to the injury of the trade of New York
in that it gave the Boston merchant the
power of putting his goods in the West
at less cost for transportation than
could the New Yorker. Mr.. Dodge said
he would have much preferred seeing
the Boston rate advanced, as it was to
the interest of the merchant for the rail-
road to secure such a fair compensation
as would enable it to pay reasonable
dividends and be able to expend money
in improving its facilities. MIR. Dodge
might have gone ON and shown that the
only solidity in business is in
operating on healthy basis that
results to the advantage OF all
parties. If railroads by cut-throat COM
petition put their rates SO low as to be-
come losing concerns when doing full
business, the whole community will in
the end suffer for the folly. Mutual in
terest is an essential principal OF correct
business economy, and when that is vio-
lated the blow falls not alone upon the
PARTY directly assailed, but upon the
whole system Of which it Is member
As trade can be greatly injured by ex-
orbitant rates of transportation, which
impose unnecessary burdens on buyer
and seller, SO 1t will suffer by putting
these rates SO low that the capital legiti-
mately invested In railroads fails to re-
turn q fair remuEe alton, thus causing
tLe.managers to resort to curtailing oi
facilities for the time, and then when
another turn in the affairs OF the com.
peting roads is reached, rushing up the
rates in vain attempt to make up tol
past losses. These spurts and reactions
in business have been theworst features
in the history of trade in this country
xnha
them Is OF no advantage in the end
Extremely low freights for TINT
induce the merchant to stock III
heavily. This causes an unnatural de
mand at the factories, v hich soon ia Ii
of, till the supply is exhausted. Th'
merchant is not in the end benefited
for he afterwards finds himself will
more goods for the time than he woult
offer his customers an assortment not 81
fresh; and the manufacturer, who per
haps had to work at disadvantages for
time to meet the demand, is the loser
for the more regularity with which h'
can work his force the greater is th'
profit 10 himself and his employees
What the people want at the hands
railroad managers is not cut-throat com
petition for time and then eomhina
fions to make up for losses, but uniform
and regular rates as low as they can b
put to pay the running expenses Of tn
roads and yield fair profit on the cap
tai actually invested in them. Sensibl
business men know we'll enough tina
they have to help pay the losses incurre
by these extremely low rates, and do nc
rejoice in seeing a railroad fight thu
brings them about.