Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1879-10-07
HOW RATES HAVE BEEN PUTUP.

y
figures reached in the railroad war OF
last year. is instructive. Then Chicago
rates on fourth-class freight were down
to &c and New York rates TO &C. In
other words, rates on east-bound
freights to and from Pittsburgh will,
under the new advance, be over four
times what they were last spring. In
July last the trunk lines were taking
grain from Chicago at less than their es-
tablished rate of - cents per 100 pounds.
In cost no more to haul and deliver
grain from Chicago to New York in July
than il cost 10 do so in October. The
rate was increased during August to -
cents, and in September from > cents
to 80 cents per hundred; it is now to be
raised 10 81 cents, and, few weeks later,
to 10 cents, with possibility OF a WIN
ter rate OF - TO 56 cents per hundred.
Perhaps no severer comments can be
made on the present methods of railway
management than the simple publica-
ton OF these figures. 1t is apparent To
the slightest understanding either that
the railway managers were throwing
away the money OF their stockholders
last spring, or that they are now taking
advantage of their ability to charge ex-
orbitant rates OF freight. The general
verdict will probably be that both
charges are true.
WHAT THE ADVANCE MEANS.
The present advance is practically a
notice 10 the business interests OF the
country that the railway kings will take
every cent out OF them which they can
get, irrespective OF what constitutes
a fair rate, or what the busl-
ness OF the nation can afford TO
pay. The advance of August 25th was
not one which need necessarily provoke
criticism, except as regards the rapid
fluctuation from the low rates preCed-
inc. The country does not object 10
fair rates of freight, but it has right to
demand that once established the rates
shall be reasonably permanent. Figur-
inc on the basis that half cent per ton
per mile represents the first cost OF
transportation on the trunk lines, the
rate OF 20 cents on fourth-claSS from Chi
cago to Pittsburgh yields a liberal, but
perhaps not excessive profit. On rates
averaging 2l@5c less, the Fort
WAYNE road in 1878 earned per cent
on sufficiently inflated stock
and bonded Indebtedness, and
paid round profit in addition to the
lessee. The advance beyond these
rates, however, means that the trunk
lines do not propose to be satisfied with
reasonable profits. The result will bc
that the traffic will be put up To such a
point, that the temptation to cut, when
business slackens up, will be as strong
as ever. In short, after period Of eX-
orbitant rates, we will have renewed the
old system of tuCtuating and uncertain
figures, which Of all things is most un-
satisfactory to general business. II the
railways could be satisfied with the pres
ent tariff, We would doubtless enjo per
manent rates with fair profits to the rail-
ways; but such sensible policy seems
| impossible TO the railway magnates.
WESTERN VIEW OF THE ADVANCE.
Speaking Of this advance the Chicago
Tribune uses the following very decided
language: "Within a few days the
Tribune has published a detailed state
ment showing the increased value OF
watered railroad stocks in the year end
ing with September, 1879. This increase
has been in the market prices, and it
aggregated S2l7 .3O6, ,505. This stock, on
roads whose actual value is represented
! bv the mortgages, has advanced I'M the
| hands Of self-cOnstituted stockholders 'rO
hundred aud S6renieen millions Of dollars
within a wear. The holders OF the
| imaginary property must have div
! idends: unless there be dividends
the paper has no value, and to
| satisfy these holders OF this
water paper these fortnightly or month
| ly advances Of the rates OF tranSporta-
| ton are made. They are ContiscatiOnS
OF the property of the merchants, man
ufacturers and farmers. An increase
within sixty days oi 80 per cent. OF the
rate for transporting products from the
| West 10 the Atlantic is levy upon
suiliciency Of the property OF producer
| to paw that advance. II is that much
gram seized and cOnfiscated by the
raifroad directors to pay dividends on
/ the purely water stock OF the railroads.
1t is not a levy TO pay or reduce the
| debt. OF those corporatiOns,-ior that
there might be some apology, but tits
| a levy 10 plumber the country to diStri-
butte dividends among licensed gamblers
and spectators.
"The country is not without RENE
dy. The farmers OF the West have the
means of redress in their own hands.
! Congress- will meet in sixty days. The
elections for a new Congress will take
place year hence. The States, acting
separately, have within their control the
Regulation Of local freights. Their power
does not. however, extend beyond their
4 own territorial limits. Congress has,
however, such constitutional power as
includes all the States without reference
TO State lines, and which no railroad cor