Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-07-22
A MORAL LECTURE
To the TrunE-Line Railroads Which
II VIII Be Well for Them TO
Consider
Report of the Advisory Commission on
Differential Rates Between the West
and the Seaboard-

New YORK, July 21.-The reross OF Alien
g. Thurman, E B. Washburne and Thomas
| NJ. Cooley, who Constitute the Advisory Com
| mission on differential rates by the trunk
| lines between the West and the seabeard
and who have been in session in this city for
several weeks past, was made known this
: S---:-o. &c e -.-s ;i.e ,,.es,.oi. 60
signed them, and the evidence heard BY
| them, the commission says that it only re-
mains for US TO state that no evidence has
been offered before us'thst the existing diff
| ferentials areiunjust, or that they operate TO
| the prejudicesof the Atlantic seaboard cities.
1t is certainly true that Baltimore and
Philadelphia have now a larger share in the
grain and provision traffic than they had
fifteen years ago, but it remains to connect
that fact with the existence of dfferentials
For long time New York nearly monopo-
LIKED that trade, but the reasons were obvious
IN its better channels of communication with
the interior and its greater additions to &C.
commodate it. When Baltimore and
Philadelphia had extended their railroad
systems so as 10 compete for trade,
and had provided elevators aud other con-
veniences, they Immediately took share
in the business, not because of 6iffereniials
but because they were then prepared for il
but no evidences were produced before US
that the Philadelphia and Baltimore bust
ness 10 which differentials are applicable is
now increasing more rapidly in proportion
than that of New York, or that the growth
of New York business is to any extent
checked by them. But on the contrary there
is abundant evidence that New York is fully
maintaining its present lead; that
its trade ID enjoying growth
so healthy and vigorous that its commercial
classes can we'll dford to regard without envy
or regret the prosperity OF other places, and
may well concede to them without repining
all advantages which have come to them as
a remedy of competitive efforts. How far
ephermal causes have contributed to this
gain we cannot know, butit is msnifestiy
evident that New York suffers little from
defferentials, as ii does not yet appear as in
terested in the subject of defferential rates. and
its sharpest competition in freights is |
encountered, SO its commercial classes are in |
favorable position to judge of the forces
affecting them. 1t has seemed to us no weak |
evidence of the justice and neces-
sity of diferentials, that the press
and reading sentiment in The interior /
was strong and decided that differentials |
were just. There was, indeed, some dis
sent, but this was the prevailing view.
Diferential rates have come into existence
under the operation of competitive forces.
They bear the same relation 10 relative /
distance and relative cost of service
They recognise, we think, the relative
advani ages of several seaporte, and they are
subordinate to the great principle which
compels carriers OF properly competing be-
tween the same points and offering certif-
Gates to their customers, to make the same
rates. We, therefore, cannot advise their 2
being disturbed, but we do not assume that
the rates which are just to-day will be Just
indefinitely. They have become established
by the force of circumstances, and they
ought to give way if future circumstances
shall be such as to render ii right and proper.
They constitute a temporary arrangement
only equitable, as we think, for the present.
but which may become inequitabie before
the lapse of any considerable time. When
ever they shall be found to operate unfairly
and give forced or unnatural direction to
trade, and whenever it shall appear that
they tend to deprive any one of the
seaports affected by them OF the proportion
Of business that would naturally come to it
under the operation, nominal competitive
want of equity in rates will appear, and it
will be right to modify or, perhaps, abolish
hem. Railroads sometimes assume such
different phases from year to year, and
almost from that those who have au-
hority in railroad matters may be Justly ex-
pected and required to give their earnest at
ention and best efforts to making their
franchises accomplish the great ends OF
lation, which was intended in their grant,
and those ends they should have in view
n determining upon the continued ex-
stence of difersntial rates. Their OBJ
'ervation of the general course OF
raffic from day to-day, and from month to
month, ought to enable them TO determine
whether the differential rates are too large or
wo small whether they are influencing trade
unfairly and upnaturaIly, and whether they
operate as an improper restraint upon COM
and when the improper effect is
discovered; they ought 10 correct the wrong
Without hesitation. To enable them to do 30,
statistics OF their business should be
Kept by each of them, aud submitted to the
others or kept in the same common office, |
and those statistics be periodically given to
he public also, publicity is great correcter
IF imaginary evils, and may be an important
preventive of the evil. both imaginary |
md real. We do not assume or believe
here exist in railroad official circles any
legitimate authority to determine the ques-
ion OF rates arbitrarily. Large powers of
self government have undoubtedly been left |
BY law in railroad managers, but all their '
authority is qualified by duty 10 the pub
ic and 1t cannot be too often nor too point
,dly asserted that the obligation on their |
part to serve the public with relative fair
ness is of perpetual force. In their future
dealings with the important question which
mas been the occasion for our coming together, !
he great trunk lines should be particularly
careful 10 give no occasion for just complaint,
hat they subject any one OF the seaboard
,ities to the operation of arbitrary or unfair
regulations or charges, or that they fail to
observe toward any one OF them, or toward
he people trading or deciding trade with >.
hem, the mandate Of the common law 10
ieal justly and distribute fairly the benefits
ind burdens which are incident to their oc- I
,upation. ALLEN G. THURMAN.
L. B. wASHBURNE.
THos M'CooLEY.