New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-07-22


dends on the cost of the roads and their equip
ments." To show that the cost principle would De
TO the advantage of New-lOrk. II was necessary 10
prove That the expense of Transporting freight be-
less than that between Philadelphia and Chicago
or Baltimore and Chicago, or at least that II
mssloners say, unfortunately, the information
that was produced before us did not appear TO be
very precise or very accurate Our atten-
tsou not directed TO official reports or ngures
where or by which the actual cost was set Iorth
but rather TO the Typographical features OF inc
country between New-io and tine head of Lake
Micnlgdn.' The report saws that TO make out Tue
case OF more favorable mes and gradients between
Chicago ana New-York. the route OF one
road only - the New-lOTk Central - must
be taken. But New-lork has otneI
roads which it desirable tor its interest shoglu
live and prosper. he Application OF the COS, pm
cpe unuer he Assumption That the New, ioIh III th
tfal route is the most meal, would force lne
Pennsylvania to either carry business a' ia'oo
when VII. not give lair return IN and the
Erie, the me OF which is also assumed 10 oe iess
favorable than that OF the Central. might De oop1
PEELED 10 face the same alternative. IA. ula;
Tendency OF the appncatlon OF this principe,
tne report continues would DE III Tue uIeS.
OF throwing u,on one or the eAsIlhe hnes W Wv wv
YORK the Oulk of the NeW-1Ork Duslh IS, 10 Tue ue
structon OF Others, and to the nnal destruction
of competition. Is not 10 be assumed that ths Is
what New Ork DESIRES.
DIFFERENCES In RUNNING EXPENSES.
The commissioners next take up the assertions OF
cheapness OF the uel consuned by the pennsylvania
and the baltimore and QUO Railroads, and
their shorter distances, oyerbalance the aaVah-
tages of the more favorable lines OF
the Newly YORK Central ana IT'S amHa.ou
roads he oincal figures of the cost OF moving
ton of freight . milo ON the New-lOrK Central cue
Erie and tue Pennsy wanna kaIlrOadsinake u very
unfayOraDie suO~Ing Tor New- YORK. Dut tno I'm VI,
mIssoneIs pOint tnai, for their PURPOSE LILO s'
tistlcs are OF lItiie yaiue, because: . ~
a. The tIunk-lIne companies report the cost over
their TOa~s only ana DO not ihcluuo oDV -, ~
over the ieeuer Toads, when "uat IL noeuo 49, "
known is the cost OF transportation over lne "noio
line from Western polnts 10 the seaOoard a..
FL The companies IN their reports 40 not us,
rr,mlnate between the cost OF transporting lOcal
fre,gnt ana through freight, but enueayOr only 10
find the average cost OF moving Ieght "heh IL Is
only the cost OF moving through freight whicn Is
desired TOR the CONSIDERATION OF the question OF
ditIeren ial raIes. The ComInlss ioners also poiht
out tnat ne value Oh tnese statistics Is Nua'o1 "
the lack vi uniformity among Inc lallrOauS III
fhe,r svstem of krep,Ig accounts. 1ue COmmisSl
ers concrude, however, that pIllha laCle TIC CASE
seems 10 i've againsl New York. Attention Is next
maid 10 The ar.nent tnat me cost OI sclVce 10 re-
auced on tGe New-1ork roads by theil being apIe
10 return "a proportion ot West-OOunu IeiShI
than the more sOutneTn frank lines. INC OoLlhiS-
sioneTs quotc statistics showing ,he ull'icloSo ~
the freign,s received ana those sent on, over tne
four American TRUNK lines 10y the four leading Az
lanlic seaUoaTd cities III 1850 anu say
Tue tab,e SHOWS tnat the proportion OF freight sent
Out non NeW-lOrk over tuese rOdus "leH elnpai1u
with that received lrom Them Is aoy
greater tnan te proportion e4tner baltimore or ih-
adelpnia neNcrtuc-ess only 10 te 10 iou auu
a qaar er, ana Il IS manifest mat not Only must Il
larse proportion the wDicn 20 loaded 70 Ne"
YORK return Without lJads Out tndt uOn lloIo 0on
sid,rp,e number must ~ return from New OH tiah
from either of me OGer cities White, therefore, No"
advantage over as rivals III o l~i Sc PV
pOrIOn Oi west-Uoul.d 70 easlbOuhu H"l@ht' "a. au
xxsn,age If es,imaud bl Inc bak, s lot Nery
great And be DOrhe III NINA Ihat tnooo loui
cues 40 Dy any means uSh ~ the Io"ue al theh
NsesDolnd noIsnt, Uut Lneg large Quantities rom
ether towns along .belr hue L. may tH1' M i Ii
wescDound frolgnts ave. & heh II Tn Ir' On Az
but even Lhcn tEC leidllNc h'N""t"5N % w" Vii
probably be cOnslderaov less g. an some OF lbs
have suDpnseu. careful eAaildtlOn Vi al tuo
arguments NeH-lOIk, sc are not satISueu
that srct apnci OF Inc cost pTluclp!e, IL eIouu
be suse, puule "a Application, would be Likely To
beue. trade OF tnat cay IN It's rivalry Win otAer
Atlantic Gales.
pRACrCABILITY OF THE COST PRINCIPLE.
The commissioners next discuss the pracucaolhty
OF making the cost princIpe the controlling stand
ard for railroad tarlfs assuming That the exact ex-
pense OF transporting freight could he attained
They say that many OF the companies-perhaps
maionty OF theIn-ln order To realize cost,
inciumng tar return on the ,capltal
invested in them, would be compelled 10
increase their charges very considerably
,shiie oilers including perhaps, some OF tue ulnk
lines mi ght Il upOn Tor reduction. LIE
general result would Dc not dimlhuIIOh OF charges
bur an increase nc commissioners argue thai tne
effect oi strict Application OF the coSt prnclple III
the maIklur Oh raruls as between the cOmpe ing
Atlantic cues should DC carefully considered OeOre
IN should be cartIcd out Iuey SHOW now tine Nei-
faIe oil &c country Is bound up Ia thai Oh tne
Tor example the destruction Ot BaltimOrcs ira
could DC contemplated with satisfaction by the
country. lneS say
ON Tie other nan the strict application OF the
cost rnc lie IOuud require that tue dinor-
enna.s against New OK sAoGL DC douoiod woulI IL
be iSslUie 10 double hcn Irrespective oI an o1nSe
quenc Trade and prosperity o. ina cy mat
these couscq ins1 prove disastrous the primer
pie cOu.d b. upheld a"d enVrVeu, See"'S o'l']' o A.
would sive advantages 10 Inc town most AMY 40
Gated cheap cOnercial lhteeouisr, ,of %ngn aIo
otness could nave 40 CON - 80! 90
III d re we're OtAeI inl'edl" en-WOuId iehue Inc
Application o. "a. principe vi ser,
ai II mus exercise 10 the fullest eA'en "ned tne
need come railroad CORPORA IONS cahho', III
their rivalry Other accept PrIhcpOs Oh acton
which must necessarily lmpoveIlsn Ieh II the Bal1
the application OF tine cost principe as Dct"e,nl' nd
the north H. IL must a'cep' oss returns upon s
6usuess aud 1t continue the struggle even enough
no more than operating eAPehSrS Dc Icazed, rather
than submit u obstruction without an effort at self
But Saen il comes to applying the cost principle to
the several winch serve the same city, 1t Is at once
perceived that dlhcdites are msufincuDlaDc. Ine
Application must, of COURSE De MADE on estimates OF
probable results aud INC estimates WIN nave Ia view
percentage prOnts watch II Is expected or hoped VIII
&c realized But "i.h four or more lines OF very differ
ent Length competing IoI the s"ll1 puSihtss, II Is
evident that cost must nave, when applied 10
their business. very uherent meanings. II the
shortest CHEAPEST line MAKES It's charges OH caicu-
lation per cent pront, the longest and most
expensive must conform to tue charges, even though
they be sucn as VIII Insure no P!on az al OH1 com
pany my hen carry at cost Wnlch Includes III per
cent pOnt, another at cost when Includes say per
cent pront wue tnird barely pays It's opera ing eX-
penss and repairs but stil obtains the COS OF moving
fue fr.gu. CON- eLuou UDlges me companies
what tIcy can get, and 10 satisfy the demands upon
them 1t but wnen the cost ST" hdaid Is 50 uncer-
tam and elastic may include prOhts Wnen they
can and dst eIclude them when they can
not b. Is evident that cannot he standard
eral OF Jest application IL II Impossible that thnS
can De governing principle winch, III Inc nature %
things. caunOt the meaning To the
parties W 40 are De affected by lis application.
now RATES ABE AFFECTED By COMPETITION.
The commissioners, III coming 10 the considers
ton vi the third principle suggested for application
In the making of railroad charges-the principle of
connect tIon-,ay that 1t Will not necessarily make
cost and distance elements III the determination Of
rates allowing TO each It's Just value according to