The Northern Pacific farmer. [volume] (Wadena, Minn.) 1878-1885, 1881-12-22
Short and Long Hauls on Railroads.

Last summer the New York Chamber OF
Commerce propounded some leading ques-
tons to the railroad managers of the coun-
try in respect to the charges on freight and
transportation, and among them was the
following concerning long and short hauls:
What do you think Of the practice Of
charging more for short than for long
from New York to Salt Lake City, and
81. so from New York to San Francisco.
Ono of the railroad officers makes the
following answer:
If the railroad company were able to fix
the rates from New York to Salt Lake City,
and also the rates from New York to San
Francisco, and should, arbitrarily, make
the lesser rate for the longer distance, 1t
would be very foolish. 1t would simply
be equivalent TO making present of that
much money to the San Francisco shippers,
and, while there might not be anything par
ticularly wrong in it'll would hardly be con-
sidered business transaction. But, if the
rate from New York to Salt Lake City is in
itself reasonable and less than the service
is worth; and it the rate from New York to
San Francisco was already less by water
route than the rate to Salt Lake City, then
the railroad would be entirely right to com.
pete in San Francisco for New York bust
ness at whatever rates it could get. By be-
ing free to do this, it could gain consider
able now business. Profits from this bust
ness would help to pay its expenses and in
terest, and contribute that much to reduc-
ing the average rates, which it could afford
to make to Salt Lake City, and all other
points along it's line. A moments reflection
will show that Salt Lake City is one of
the places against which nature has dis
&o9 - II.
on the continent, being surrounded by
were built, while the rate from New York to
San Francisco-1 900 miles farther-wns
perhaps, as now, $3.50, the rate to Salt Lake
City was, perhaps, $500. Here, then, was
q natural discrimination of $97. so against
Salt Lake City. The na:lroad has reduced
that discrimination to $1.50. Whenever
the railroad can secure still larger amount
of through business from San Francisco,
and, perhaps, from China and Japan, 80 as
to reduce its average expenses, the rate to
Salt Lake can be still further re-
duced, and the discrimination lessened, so
that, in fact the discrimination, which en-
ables road to secure San Francisco bust
ness, is in true interest of Salt Lake
shippers.
Take another case illustrating the same
principle:
Corinth, Miss, at the intersection of the
Mobile and Ohio and the Memphis and
Charleston railroads, is ninety three miles
from Memphis, and 1928 miles from Mobile.
A reasonable local rate on q bale of cotton
from Corinth to memphis it would be, say
81 per bale. Memphis is about as
good q cotton market as Mobile. Conse-
quently, all the cotton raised in the vicinity
Of Corinth will 60 to Memphis. unless the
rate to Mobile is made the same as to Mem
phis. Between Corinth and Mobile, how
ever, are many stations where much cotton
is brought for shipment. We will take
Tupelo as an illustration, 280 miles from
Mobile. Now, if ST. q bale is a reasonable
rate for ninety. three miles, the rate from
rupelo to Mobile--580 miles-might very
well be 50. If, therefore, the Mobile and
Ohio road completes in the market at
Corinth for cotton, it will be charging less
than for the shorter from
Tupelo. And, if the law should step in
and forbid this practice, the Mobile and
Ohio road wou Id simply have to withdraw
from competition at Corinth. The shipper
at Tupelo claims that the Mobile and Ohio
load is discriminating against him when it
hauls Corinth cotton for 81 and charges
50 from Tupelo. But would it benefit him
to have the road give up all Corinth cotton
and withdraw from competition at that
placer II could not afford to reduce at
Tupelo, end twenty other stations similarly
situated, in order to secure few hundred
bales from Corinth at low rate. It would
then be less able to reduce rates at Tupelo
and all other local points on its line; and
nobody on earth would be benefited but
the Memphis and Charleston railroad,
which would have monopoly of the haul.
ing Of Corinth cotton, and Corinth would
lose the benefit OF competition from the
Gulf.
The effect Of any law to restrict the free:
dom Of roads to act in this manner would
simply destroy competition.