Savannah morning news. [volume] (Savannah) 1868-1887, 1881-01-18
REGULATING RAILROADS.
COMMON SENSE VIEW OF A KEN
TUCKY COMMISSIONER.
Wr. Rochester Submits a Minority
Report-0ppOses ANY Grant OF Ar
bitrary POwer-Rebates and Spe-
ciaI Rates what Are and Are Not
Determinations.

bitrary POwer-Rebates and Spe-
ciaI Rates what Are and Are Not
Determinations.
One Of the clearest and most convincing
articles upon the subject of regulating rail-
roads by State legislation is from Mr.. G. FL.
Rochester, one Of the Railroad Commits
sioners of Kentucky. The Commission was
created by the Legislature last May, and IS
requested to report to the Governor such
facts, statements and explanations as will
disclose the actual workings of the system
OF railroad transportation in Its bearings
upon the business and prosperity of the
people of that State, and such suggestions
in relation thereto as to them may seem
appropriate, and particularly as to whether,
in their judgment, the railroads are classi-
fed In regard to the rate of fare and freight
to be charged upon them, and, If so, in
what manner; also, as to whether classifi-
cation of freight can be made, aud in what
manner.
The Commission, which Is purely advis-
ory, after reviewing the progress and con
dition of railroad corporations in the State,
conclude that such classification of freight
can be made, which will, In great meas
ure, remedy existing evils of extortion and
Discrimination. just here, however, the
report divides. Two members OF the Com.
mission proceed to say that, as the adoption
of system OF freight classification by the
Legislature, to be adhered to by the rail-
road companies as fixed and determined,
might be impracdcabie, therefore some
Commission should be authorized to SO
alter, modify and adapt the system as oe-
cssion may demand or circumstances re-
quire. Such, substantially, is the Georgia
Commission, possessing the power, from
time TO time, to prescribe, alter and amend
such schedules OF rates as they may impose
upon railroads In the State. Such an ad-
vance, however, Mr.. Rochester, the third
member Of the Kentucky Commission, OPP
poses in an exceedingly able and conserva-
tive minority report. This he believes to
be dangerous grant of power, even If it
could be constitutionally given, and might
be unWlsely exercised. The result would
be as In Wisconsin years ago. The attempt
was there made virtually to run the railroads
by the State, through Commission ap-
pointed by its Legislature The plan re-
suited in complete and disastrous failure,
and the same constituency which clamored
so loudly for a Commission with extraordi-
nary and arbitrary power, after seeing the
impracticabElity of its work, and the "con-
fusion worse confounded" into which both
the people and the railroads were brought,
was as outspoken and earnest for the repeal
of the law creating the Commission as it had
been for its passage. The Georgia Com
mission, composed of three from amongst
the best men of that State, while having ac-
complished much good by their wise sug-
gestlons, now, when undertaking to exercise
the extraordinary, and it may be said, arb;-
trary powers conferred upon II, finds itself
environed with serious difficulty, to euch
extent that there is reason to believe it
ha szF x1f4
the exercise of which the people expect at
fits hands. II that Commission, personally
known to consist Of men of the highest ca.
pacity and integrity, is appalled, at the mag
nitude of its powers, and the difficulty of
Its exercise wisely and well, is It too much to
expect that "Railroad Commission, or
some other person or persons at the same
time" with like power, would meet with
less embarrassment or greater success In
Kentucky? My strong conviction Is
it would not, and that in less than
find itself hopelesslY ''stuck In the
mud ~ The running of railroads is q
science, and years of close, daily study are
required to understand 1t, and only such as
do thus devote themselves can be expected
to be competent to the management of this
complex and difficult question. The power
of Railroad Commission, limited, as 1t is,
by the law under which the present one has
its authority, Is thought to be as great as
should be granted, its powers being sug
gestive or advisory, except In cases where
the law may be violated, and the success of
this Commission, so far, attests the wisdom
of limitation of its authority.
Mr.. Rochester then proceeds to treat of
several important subjects connected with
the railroad problem as follows:
REBATES AND DRAWBACKS.
It is certainly true that the law requires
that all freight rates should have conspicu-
Gus and continuous posting In the depots
of all railroads In Kentucky, so that all
persons may have access to and know them.
The establishment of a system allowing re-
bates and drawbacks, when such are not
made public, is believed to be in violation
both OF the spirit and letter of the law, and
IL such system is practiced by any road in
the State, 1t should cease or this Commis-
sion shall require 1t to be corrected In the
manner prescribed BY law. Further, 1t
would seem more In accordance with fair
dealings to discontinue the prac-
tice of giving rebates or drawbacks,
even though the roads giving them
might comply with the law in conspicu
ouslv posting the same In their places
Of business, for the very apparent reason
that many shippers, not understanding the
meaning of rebates and drawbacks, or how
procured, may fall to secure any advantage
therefrom. To illustrate: When as many
as ten car loads of stock were shipped at
say $50 per car load, with promise of q re-
bate of 81 on arrival at destination,i 1t would
simplify the matter to say that when as
many as ten car loads of stock are shipped
at any one time by a bona ftde shipper, the
rate should be $16. AS one Of the Comnis-
sion, after having given the question much
thought, il seems to me that the great COM
mercial principle which draws the dtstinc
ton between wholesale and retail rates, JUS
tify ing a smaller per centum Of profit upon
the former than the latter, has its applica-
tlon in the business of railroad transports
tion. The railroads charge more per head
for shipment of a single animal, or per
hundred pounds of freight, than for a
whole car load of stock, or freight Of the
same class, and this is right. s
SPECIAL RATES.
Secret special rates, favoring one indvid-
ual above another, is manifestlY wrong, and
II brought to the knowledge of the Com
mission it would be its duty to secure their
correction. All shippers from the same
locality or station, shipping IN like quanti-
ties, should be placed upon an exact equalf-
ty. But if a railroad company agrees to
furnish to a manufacturer, miner or a
farmer, special rates, it should In justice
furnish like special rates to all similar
classes shipped from the same point, and
such special rate should be published as re-
quired By law. This done, there Is no IN
Just discrimination. Let 1t be supposed that
A for himself, or representing himself and
others, elects to establish IN the
town of HopkinsviIle large Touring
mill, that he may grind the
wheat grown In that section for ship
ment to dietant markets. After his NTH Is
1p and under way, he finds that he cannot
ship his -four as cheapIy as the same article
can be taken from Louisville, Cincinnati,
sc. Louis or Chicago TO Atlanta or other
points South. He applies to the railroad
company upon whose line he lives for
special rate to meet the competition FROM
)ther points. Tbs' road, by reason of tbe
comparative Wholesale business which VIII
.ome to It, grants the special rate. Ought
t not to do so, provided the same rate is
granted to sill manufacturers Of the same
lass and can 1t not without being justly
TO harsh criticism! The railroad
Increases its business, the manufactu urer
lnds a market In which he can compete
With other points, and the farmer, who pro-
luces the wheat, secures the benefit of
.ome market and a remunerative price for
IFS grain, not otherwise obtainable. 80 all
re benefited, and no one injured.
UsT AND UNJUST DISCRIMINATION IN TARIFF
RATES.
While no discrimination would be Just
'etween individuals travelling the same dis
ances, or shipping freight from and to the |