Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1881-12-22

compete in San Francisco for Now
York business at whatever rates !,
could set. BY being free to do this !,
could gain a considerable new business
Profits from this business would heln
to pay its expenses and interest. and
contribute that much to reducing tho
average rates, which it could afford to
n ake to Salt Lake City, and all otter
points along its line. A moments re-.
Election will show that Salt Lalt City i
one of the places against which nature
has Disseminated most heavily of an
places ofthe continent, being surround.
ed by mountains and deserts. Before
railroads were built, while the rate
from New York to San Francisco 900
miles farther-was, perhaps, as now.
- so, the rate to Salt Lake City was,
perhaps, 500. Here, then, was nat,
ural discrimination of $97 80 against
Salt Lake City. The railroad has re.
duced that discrimination to $50
Whenever the railroad can secure Z.
still larger amount of through bust
ness from San Francisco, and, perhaps
from China and Japan, SO as to reduce
its average expenses, the rate to Salt
Lake can be still further reduced, and
the discrimination lessened, 30 that, il,
fact, the discrimination, which enables
a road to secure San Francisco bust.
ness, is in the true interests 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 23S miles
from Mobile. A reasonable local rate
on bale of cotton from Corinth to
Memphis would be, say 81 per bale.
Memphis is about as good a cotton
market as Mobile. Consequently, all
the cotton raised in the vicinity of
Corinth will go to Memphis, unless TIE
rate to Mobile is made the same as TO
Memphis. Between Corinth and Mo-
bile, however, are many stations where
much cotton is brought for shipment.
We will take Tupelo as an illustration,
$50 miles from Mobile. Now, if 81 a
bale is reasonable rate for ninety-three
miles. the rate frCm Tupelo to Mobile
$50 miles-might very well be 81. II,
therefore, the Mobile and Ohio road
completes in the market at Corinth for
cotton, it will be charging less for the
longer haul from Corinth than for the
shorter from Tupelo. And, if the law
should step in and forbid this practice,
the Mobile and Ohio road would simply
have to withdraw from competition at
Corinth.
The shipper at Tupelo claims that the
Mobile and Ohio road is discriminating
against him when it hauls Corinth cot
ton for 81 and charges 81 from Tupelo.
But would it benefit him to have the
road give up all Corinth cotton and
withdraw from competition at that
place? 1t could not afford 10 reduce at
Tupelo, and twenty other stations
similarly situated, in order ia secure a
few hundred bales from Corinth at
low rate. 1t 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 Mem
phis and Charleston railroad, which
would have monopoly of the hauling
of Corinth cotton, and Corinth would
lose the benefit of competition from
the Gulf.
The effect of any law to restrict the
freedom of roads to act in this manner
would simply destroy competition.
Take ansther example, illustrating
the same thing, except that the COM
petition is between railroad and a
water route. Fond du Lac, Wis, is
las miles from Chicago, on the line Of
the Chicago & Northwestern railway.
The numbering interest is very large
there, and the products of the saw
mills, single mills, and sash, door and
blind factories are nearly all shipped
to Chicago, the great distributing point
for toe northwest. A carload of lum-
Der from Fond du Lac to Chicago, load
ed and unloaded by the owner, costs
(say) $25. Green Bay is 65 miles far
Their up the line than Fond du Lac, or
2l3 miles from Chicago. Green Bay is
largely interested in the lmber bust
ness also, but it has the advantage of
being on the neck of Lake Michigan,
and ships nearly all its lumber to Chi
cago on vessels, which is cheaper than
by rail- On certain day the North
western railroad has dozen empty
cars standing on the side track at
Green Bay that are to be returned to
Chicago. A lumber dealer telegraphs
the General Manager that he will pay
twenty dollars per car for their use
from thence to Chicago, and load and
unload them himself. The offer is at
once accepted, the service performed,
and two hundred and forty dollars is
paid into the treasury of the company.
The price paid was, say five dollars per
car less than the rate from Fond du
Lac, with sixty-five miles more hau..
But the choice was between two hun
dred and forty dollars and nothing, for
the cost, to railroad company, be-
tween hauling loaded and empty cars
is of nominal account. There is little
more wear and tear, and few pounds
more steam, but the extra expense
is lnconsiderable. The lumbermen at
Fond du Lac are indignant at what
they call "the unjust discrimination
of the railroad company IN favor OF
their rivals in business at Green Bay,
and the irate newspapers at the former
l,n1o coll ln,Il,, a rrn-rafa tariff