New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-04-20
PlJIPOfD RITES.

RlILROiD RITES.
Last week Commissioner Fink published a
strong and able argument III defence OF the
pooling arrangement, which owes rs existence
mainly to his shrcwdncss, tact, and organizing
ability. No man living j. better qualified than
Mr.. Fink to promote the education of public
opinion on the various phases of the railroad
problem. II happened that his rca~onlngN were
curiouslv illustrated by events which occurred
on the very day that his able paper wa pub
l>hcd.
Mr. Fink had combattcd the idea that half
dozen railroad managers. at their arbitrary
pleasure, can change the rates charged for
transportation of freight. He had urged that
rail rates were in reality controlled, far more
generally than is supposed, 10y the competition
Of water routes; that the lake and canal route
controls trunk line rates, not only III SUMMER
but also when navigation Is not open, because
the railroad charges in winter cannot exceed
Z" those in summer 10y more than the expense OF
storage insurance and interest on the invest
" mcnt in the property to be transported during
the time navigation is closed =; and that,
through the trunk line rates from Western
points TO New York, the water rates also con-
troll rates from the Northwest TO the Southern
Atlantic States. These are extreme claims, but
they were urged with remarkable ability and
force.
Then came the trunk line managers, in meet
ing assembled at Mr.. Nandcibilt's house on
Saturday, and raised the rates for freight on all
roads within their control from - tn 80 cent?
per 100 pounds from Chicago Ia New ork for
grain, and in like proportion from other West
crn points and on other kinds of freight. 1t
does not appear that there had been any
change, or was expected To he any change
in the competition of water routes. The
reason given IN the resolution adopted was that
the Decent rate ordered April II had been
adnptcd 10 meet special or "clt rates, which
had been given. contrary To agreement, 10y some
road or roads in the pool, and which had since
been Withdrawn. On the ! lth of March, il APP
pears. the managers of the pooling roads signed
an agreement binding themselves 10 maintain
agreed rates, and ito act jointly in all inca
surcs for protection. in all cases of violation of
d" this agreement The measures of protection
specified wcrc first. to suspend through billing
of freight and pro-ratng over any offending
road 4; and second, if necessary, Ia reduce the
official rate on all freight over all thrr roads Ia
the lowest rate given 10y any offending
party Under this compact, a reduced summer
rate. on the basi. Of 80 cent, from Chicago for
grain was announced April |. But within
week it was found tlat some road was violating
the agreement by Carrying for - cents, and the
rate on all roads was therefore reduced To the
Decent basis April II. Thcrcupon it is
claimed that the offending party Withdrew the
ascent rate, and on Saturday il was agreed to
a.. "A l..
This is very well, but can Commissioner Fink
explain what the water routes had to do with
the reduction of April / or with the advance of
April 1si The truth is that Mr.. Fink has
claimed a little more than the facts warrant.
The influence of water competition is not al
WAYS operating nor always potent, and the rail
way managers, within certain limits have IA
great deal of power which it is possible for them
to use arbitrarily and unjustly. The wise ques-
ton to ask is whether, within those limits they
can do as much harm rs would be done by de-
priving them Of control of their own property,
and whether they show disposition to act un-
reasonably toward the public, to the extent of
the power which they possess.
Ii is a mistake to claim that the increase in
rate which the railroads can charge in winter is
no more than the cost of carrying the property
until spring. A great deal of freight has to be
moved and will be moved at any time when the
markets favor the sale of it, and the railroads
have the power to affect the market prices of
products by advancing rates. But do they ex-
ercise that power unjustlyf The highest rate
charged at any time during the past season of
| extraordinary storms was lower than the lowest
| rate ever given in midsummer IA late as 1872
| This and many other facts which are known to
| the public indicate that the railroads are gov
erned great deal by public opinion, as well as
| by water competition. What the Mississippi
route may ultimately do in winter need not
now be discussed; during the past winter,
! though operated more cheaply than ever, it has
not moved in three mon this as much freight as
the railroads have delivered at the seaboard in
single week, and its competition can hardly
be said to have been controlling.
| The railroads cannot charge more than about
! a certain rate even in winter, because of water
transportation so much is true. If that limit
be put ut about 40 cents, 1t is also true that tho
| railroads do not venture " Charge. even IN