Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1881-02-11

You have been pleaseu 10 'oInau W
me an extract from "Gath's letters re-
fsrr;no 10 this question, and relating oil.
re,tly 10 the Central Pacific Railroad
Cempany. The principle there stated
nropose TO Justify, although the facts, as
be states them, are largely magnified.
n is the policy of the Central Pacitlc,
and. / believe, OF the railroad companies
of the United States generally, to accept
a small profit where larger cannot be
obtained, as il is also its policy TO en-
courage the development OF the re-
sources OF the country. In dong 30 IL
practices no unjust discrimination: IL
charges nobody else more because oil the
low rate il is compelled to accept from
Others, but il puts into practice COM
mon and economic principle which
think will be recognized as just by a
simple illustration. Four individuals
have different articles which they desire
TO transport in bulk TO market, the
general conditions Of transporting being
about equal, but the goods varying III
value as one, two, three, and four. ii
ia question OF constructing road-We
will call il a railrold-to move the four
different commodities OF these four dill
ferent persons to the same market. we
will further suppose that without the
construction of the road it would be i'm
possible for either oil these parties to
move their property, and that the prop
erty once moved to market the road
would be OF no further use. Is 1t not
clear that the proportion OF the expense
10 be contributed by each should be de-
termined by the value OF the different
commodities to be moved? Articles
and . would not justify the average ex-
pense consequent upon the building OF
the road; hence, il articles and did
not paw larger share, and 2could not
be moved, and perhaps without the aid
of and 9, and could not alone afford
the construction OF the road. Hence all
four commodities might remain in the
hands OF the owners, unable to reach
market.
Another illustration in point is found
in the case OF the warehouseman who
has his building two.thirds full at regu-
lar rates. To fill the other third he often
will accept less rate for cheaper COM
modities that cannot afford to pay the
higher rate, because it is better for him
to take this small addition to the aggre-
gate receipts than to have any portion
OF his building idle. If he had nothing
offered, however, but the cheaper class
he could not afford to continue business.
The same principle is recognized
bv the owner Of the quartz
mill, say OF fifteen stamps. Ii OF high
grade rock he can obtain sufficient TO
keep ten stamps employed, he can run
the other five on the poorer article, be-
cause, while the mill must be run TO
work the good ore, the low grade can be
crushed and the metals saved at little
cost beyond the wear and tear
of the battery. Anything, however
small, earned over fixed ex-
penses is better than nothing, and the
warehouseman, the millman, and the
railroud company gladly accept a low
rate (which helps pay expenses that
must be incurred), when the articles OF.
fered cannot afford to pay higher. II,
however, they had nothing which paid
the higher rates, all would fail. Every
ship plying the ocean practices this
principle of business.
1t is on this principle that We Justify
the carrying Of low-grade ores at rate
that possibly barely covers the expense
consequent upon its movement, while
we charge for those of higher grade
rate that will enable US TO operate the
road and pay fair rate for the services
rendered. This principle OF charging &C.
cording to values is entirely in harmony
with the rule OF taxation levied for the
support of the government.
L. Tho fharua for SarVirp nv
railroad companies there are various
things that may enter into the determl-
nation OF the rates, prominently among
them them the quality OF the article
carried, and the quantity, the distance
moved, the climate and other difficulties
to be overcome in the transportation,
the volume of business, whether the
movement in either direction is about
equal, and the question OF competition.
1t is to meet competition that freight is
carried from New York 10 San Francis
co for less rate than from New York
10 Salt Lake City. The rate to Salt Lake
is the sum OF the regular rates charged
BY the various railroad companies be-
tween those two points. The merchant
at Salt Lake pays as freight on his
Chicago the same rate, and only the
same, as the Chicago merchant pays,
and from Chicago to Council Bluffs the
same, and only the same, rs the shipper
at Council Bluffs pays. But when freight
moves from New York TO San Francisco
the railroad companies meet COMPETE
ton by water, and they are compelled to
work Tor very low rate, else accept
comparative idleness. The only rates
that are absolutely fixed by the railroad
companies are those on that small por-
ton OF the business paying the maxi
mum. All others are fixed and iBfu-
enced by the various circumstances be-
fore mentioned and beyond the control
Of the companies.
There is not principle OF business
exercised by the railroad companies In
the management of their business that
is not deemed honorable and which is
not in constant practice by the mer-
chant, the manufacturer, the lawyer,the
doctor and the farmer. When, in con.
sequence OF short crop in Europe, the
European buyer enters our market in
competition with the home buyer fer
the purchase Of the wheat or other pro-
duct OF the farm, the farmer avails him
self OF this competition and takes two
prices as cheerfully as he took one when
there was no competition, and the con-
sumner has to pay accordingly. The
merchant sells his goods at differ.
ent per centages OF profit,
The lawyer discriminates between
his clients according to their ability to
pay, often, because he has the time,
taking a case at small rate sooner than
to be idle, and charging larger fee
when he can obtain it. The benevolent
doctor practices his profession on similar
principles and often administers his
medicines without charge. The manu-
facturer of steel for the railroads is glad
at one time to sell to them for $40 per
ton, while at another time he charges,
because he can get it, $50, the cost OF
production being about the same in
either case, and that he may enjoy this
large profit there is levied, in the way Of