Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1883-03-24

On all the railroads of the United States
for the single year of 1881 as compared
with what such sum would have been had
the rates charged from 1866 to 1869 re-
manned in force appears thus
They would have been, specie value. 1875 900 600
They were IN fact. 5000 O00
exceeding by 100000, 600 the sum of
the direct and indirect taxes levied on the
people in 1851 for national, State and mu-
nicipal revenues, all taxes being about
SIPS, 900, 600. In the movement of freight
on the Chicago, Burlington and Quincy
Railroad the average rate per ton per mile
has in fifteen years declined from fraction
over cents to fraction over l cent-the
rate now being but one-third that of 1865
The increase in service performed has been
about 900 per cent. while the earnings
from freight have incr eased but about 300
per cent. Thus, the company performed
three times the service to earn dollar in
1882 that it did in 1868, and in the last
year the public obtained transportation for
300 tons of freight for the same money
thev paid for transporting 100 tons in 1868.
An exhibit similar in kind is shown in the
passenger traffic on this road for the same
period. The saving to the public by the
reduction in traffic rates since 1868 on the
Chicago, Burlington and Quincy Railroad
foots up for both passengers and freight
the enormous sum of Sl77,0ll, l64 80.
THE REDUCTION IN THE RATES
Charged on all lines of railway is to be at.
tributed not alone to the fact that the cost
of transportation has been greatly lessened
by the consolidation of lines, and by ma.
terial improvements in the operation of
railways, but also in part to the fact that
the transporter has rehquished proportion.
ately of his profits-the net earnings per
ton per mile being. in general, correspond
ingly reduced. Commenting on the facts
of the marked reduction in transportation
rates on our railways, Edward Atkinson,
the we'll. known railroad statistician, says
In connection with this grand success,
which has given the United States by far
the most effective and the cheapest railway
service in the world, witness the utter fail
ure of the State ownership of the railways
in France, upon the testimony of her great
Minister of Finance, Leon Say. In the
last number of the Journal des Econonsistes
Leon Say pronounces the State system of
owning and operating railways in France
30 be an
UTTER AND COMPLETE FAILURE;
The cost of construction to be excessive,
the service poor, and the nation taxed
heavily each year to make up for the de.
fioiency in earnings. And this deficiency,
which short time ago was small, is now
annually increasing because under the in
efficient system of State management the
cost of operating the railways is constantly
absorbing larger and larger share of the
gross receipts from the traffic, while the
method of appointments to the railway
management has become potent cause of
corruption, and is one of the greatest dam
gers to the stability of the French Repub.
lic." The free building of railroads by
corporate capital, and their free operation
by the companies, have resulted in this
country in the increasing efficiency and
cheapness of system of internal trans
lportation which has reached stage of per.
lection unequaled elsewhere in the world.
In this main fact is found sufficient argu.
1nent against attempts to regulate trans.
portation rates by statute. But, further.
more, all experience proves the mischievous
impolicy of statutory regulations. Con-
cluCiCQ AOm bAO cbnuQpOlAb VI PuOAC
interest, the vital and unavoidable error of
railroad legislation is the practical subor-
dination thus involved of the natural
economic forces of trade to artificial stand
ards. From such obstruction of the
FREE COURSE OF NATURAL LAWS,
Evils of far greater and wider consequence
must always ensue than the instances of
temporary or apparent imperfections and
iniduities it is sought to remedy. It would
be impossible for the ablest railway experts
to formulate code by which to make up
the traffic rates of a railway company.
The principles which operate in determin-
ing rates can never be definite and aoso-
lutte in their relative degrees of action, but
must constantly adjust themselves to the
changing and growing needs of our foreign
and domestic commerce. The primary
basis of railroad rates as whole is the
amount of capital inconvertibly invested
in construction and the expenses of opera
ton taken in connection with the volume
of traffic. State interference with the
management of railway property must have
regard to this fundamental basis, for other
wise there would be presupposed not only
the right Of the Government to confiscate
the property of the citizen at will, but also
indifference on the part of the Government
to the preservation of capital as such. On
this general basis the application of rates
to particular classes of traffic, and in de-
tail, must be such as to afford the means
for the
PROFITABLE EXCHANGE OF COMMODITIES
Between the people of different States or
nations, and thus encourage and stimulate
production, while at the same time return
ing to the transporter reasonable profit
for his service. It is because of this need
of the free and flexible application of rates
to meet the constantly growing and chang
ing requirements and exigencies of produe-
tion and trade that legislation antagonizes
public interest in just so far as it lays
down definite and restrictive regulations,
or establishes arbitrary standards of tariff
adjustments. Thus the principle OF uni
form rates per ton per mile is vicious, be-
cause in practice it discriminates against .
producing country in proportion TO its com.
parative distance from the general markets,
and against people who do not furnish
their own supplies within themselves in
proportion to their remotehess from the
sources of supply. The principle of cost
ana FISK Oh S6INlCo, WuACu lutluuCo OOnsAu"
erations of the bulk and value Of commod-
tiles, if applied as an arbitrary standard.
is equally impracticable, inequitable and
prohibitory.
FOR MANY YEARS THE BRITISH PARLIAMENT
Made railway transportation the subject of
regulation by statutes, which vainly as.
sumed to correct certain alleged abuses and
at the same time preserve unimpaired the
general value and serviceableness of the
railroads as common carriers. The whole
subject was finally committed to Royal
Commission on Railways, composed OF some
of the ablest statesmen and economists in
the kingdom, to devise and report a plan
of legislation for railways which would best
promote all interests. After long and ex-
haustive investigation the Commission was
compelled to conclude that the adoption OF
rules or standards for the adjustment Of