New-York tribune., 1878-02-16
CONTROLLING RAILROAD RATES.

man of the Massachusetts Railway Commits
sion. that he is gifted in devislng and appre-
ciatjpe dmpractlcable schemes. NOt many
years ago, as all who pay attention TO the rail-
wav problem remember. he was inclined to
think that the only remedy for existing evils
was TO be found in the Belgian system-re-
straint of all railways by State ownership OF
one. Yet in the latest report of the Commits
sion. lust received, he comedies that this plan,
upon careful investigation, involved such 'prac-
"tical difficulties, both political and financial,
"that the corporatOrs (Of the HoOsac Tunnel
Roard, one of whom was also member OF the
"board) unanimously found themselves COM
"pelled by the logic of their investigations, re-
"pardless of preconceived theories" to dismiss
the scheme from consideration. With this re-
mark, Mr.. Adams very properly secures con-
fidence in his integrity and candor, in the
recommendation of another scheme but leaves
room to doubt whether the new plan will he
found less impracticable than the old. Upon
consideration of his report, we are Impelled to
the belief that the scheme now submitted Tor
public consideration will be found either
wholly impracticable, or exceedingly injurious
10 the public. The subject Is so important,
and the recent attempt by Mr.. Fink to bring
about and to keep alive railway combination
has attracted SO much attention, that the real
tendencies of the movement deserve public
discussion.
II il urged that egalized combination OF
railways to maintain rates is the only escape
from the unrestrained competition which IN
wolves bankruptcy for railways and outrageous
determinations for the public. Ii the compe-
titiOn continues, Mr.. Adams urges, 1t Will be
impossible to maintain equable rates, impos-
sblc for shippers to know at what cost
freight can he transported in future, and im-
possible TO prevent determinations III favor of
certain cities or towns. Always some road.
being bankrupt or on the verge of bank
ruptcy, will carry at a ruinous rate, and others
will be compelled to permit intOlerable dis
examinations or to meet the rates proposed,
and on the march toward bankruptcy. This
state of things, it is held, is damaging to the
public, and bankrupts the railways. No
voluntary combination, without power TO
enforce its authority over its own
members, can endure. Bankruptcy OF
all competing roads. it is asserted,
will only make the competition more fierce
and the determinations more injurious. Hence
the suggestion that the confederation OF rail-
ways NAV be invested with some power to
compel the obedience of its members. subject
to restraints of law. This, it is thought may
secure stcadness of rates, and rates proper
toned to distance; and the publicity OF opcr-
atons, the direct responsibility OF the conied-
Grafton, and the restraints Of law, will suffice
to protect the public from extortion.
Everybody will admit that steady, moderate,
and fairly adjusted rates are desirable. But
who is To determine what are moderate rates,
or what adjustment is fair to competing
citesi The railway managers themselves, ac-
cording to this plan. True, they are to be
restrained by law. But no man living would
have proposed a law ten years ago restricting
roads to rates as low as those now considered
extortionate. No man would have asked rates
as low as those at which the trunk lines as
scrt that they earned good dividends last
wear. Laws must serve for term OF years,
or they make mischief. Practically, the scheme
contemplates that railway league shall have
power to fix rates, exactly as the coal monop-
oily fixed the price of coal, and shall then be
protected by law in enforcing its decisions
upon any of its own members who may wish
to serve the public better.
In practical working, what evidence Is
there that such scheme would secure equa-
bic rates I The thing most probable Is
that the confederated roads would put
down rates only when needful to defeat
competition by water, and only to GER
tain points, and would lift rates to the utmost
at other times and places. What evidence is
there that determinations could thus be
Al. E.,.. aptlv
sustained each other in the most unreasonable
determinations against points deemed unm-
portant in competition? What evidence is
there that rates would be moderate, when the
roads claimed TO be earning handsome divi-
dends at a grain rate of 20 cents i'll 1876, and
put the rate up to 40 or 30 cents after conied-
eratng7 The secret of the whole difficulty is
that the nominal capital which claims
earnings is too large for the traffic
which can be conducted justly to the
public. There are too many roads, said Mr..
Vanderbilt Yes, and some of the roads pre-
tend to have too much capital invested. II
the combination is to compel the public to pay
enough for transportation to make all the roads
profitable and to yield dividends on all the
watered stOck-if these are to be called mod
"erate ratesn-the scheme involves an enOr
nous plunder of the public. If not, how are
the less fortunate or Over-stocked roads to be
induced to surrender their freedom, and con-
sent to rates which leave them bankrupt
Ina word, no conceivable scheme can
be devised and no possible restraint of law
or public opinion, which will be accepted
by bankrupt, Over-stocked, or badly-located
roads, unless it involves wholesale plunder of
the public. If it means justice to the public,
the roads will not surrender their freedom.
If 1t means sufficient plumber of the public to
make all the bankrupt roads prosperous, with