New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-04-25

Either the local rate must be put as low rs
fine through rate necessary TO get traffic III
comoetition with water routes, and III that
case the road could earn interest on its debt,
ar else the through traffic must he entirely
abandoned. and in that ease the local business
must nav enough more to yield interest on
debit and all proGts of capital Necessarily the
railroads would choose to save themselves
from bankruptcy by abandoning the through
traffic and putting the heavier charges upon
local traffic.
This is not the worst as Mr.. FINK poihtcu
out. From any important commercial POM
several combinations of roads may compete ior
the through traffic for instance, from indian
apolis to Ncw-York, O. either OF several ROADS
with the Marietta and Cincinnati, or with the
Baltimore and Ohio and Chicago, and the Bal
timoIe and Ohio; (2) either OF several roads
with the Pan Handle or the Fort Wayne and the
Pennsylvania (3l either of several roads with
the old Atlantic and. Great Western, or the
Lake Shore. and the Erie % either of sew
cra roads with the Lake Shore, or the Cana
da Southern, and the New-fOrk Central.
These are but few illustrations OF more than
fifty combinations of roads by which through
freight from that point to Ncw-lork might be
shipped Now, the Reagan bill would compel
each one of all the roads concerned to fix its
through charge at point not below that
which it finds necessary for its local traiiic.
On local traffic distance counts heavily. "A
pad 100 miles long cannot afford to put Its
local rate from end to end as low as
road 70 miles long; therefore, the Reagan
bill would compel il not to Put its rate for
through traffic az low. OF necessity, that COM
binalOn of roads which covered the least dis
lance between Indianapolis and New-lork
would he enabled to make the lowest aggrc-
gate of local rates, and. therefore, under the
bill, could offer lower through rate than any
other combination of roads. In consequence,
that combination of roads would get all the
through traffic between those points to the cx-
tent of its carrying capacity. All others
would be obliged TO leave the through traffic,
and TO compensate themselves by heavier
charges on the local traffic along their lines.
And precisely the same principle would apply
at all points where competing combinations Of
roads can exisi one would be the shorter
and. therefore. could offer the lowest rate and
get the through business, while the others
would he Obliged to earn living out OF the
people along their lines.
Mir. REAGAN could not understand his, though
Mr. FINK explanation was repeatedly given
with far more lulnc5s and miuutencss than
space permits us 20 give. But If ne could not
comprehend principle which so obviously
affects all railroad competition. and must de
tcr1nnc the usefulness OF hauniulnc-' of all
attempts to requisite such competition by law
what hope is there that Legislatures and Com
presses can master the thousand intricacies
and difficulties of the problem
Nh Fink brought out very clearly, also, the
argument that local shippers have no right to
object, if the rates allowed to them are III
trmscally reasonable. merely because Che rail-
roads make lower rates when they have TO
carry in competition with water routes or
other roads. For each road is bu'lt primarily
for the accommodation OF tire people along the
linc and it does benefit them enormously II il
transport ~ reasonable rates. Ii ought to be
able to depend upon them to pay dcccntly for
that service, which doubles the value Of their
property. Whether the road succeeds in getting
any OTHER business at rcmuncTatlYe rates or
not. But it has been abundantly demonstrated
that when the railroads are left free and are
able 10 got large through traffic, il has enabled
them to make great reductions In the charges
for local traffic. The Reagan bill would simply
reverse the movement, undo much OF the
progress made, and force roads in many in
stances to charge higher rates for local bust
ness. 1t is essentially reactionaiy measure,
and belongs to the craftsmanship Of by
gore age.