Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1884-04-25

Treating vi lHe IGldliOl DelWee1l rates
and the volume of traffic he remarks that
the complaint is made that Western roads
have higher rates than Eastern trunk lines,
and the lack of direct competition is as
sumed to be the cause. But when the
volume of traffic is considered in connec-
tion with the rates the wonder is that a
greater difference in rates does not exist
Thus the rates per ton per mile for 1882
may be represented by dotted lines in this
order
East $40 ........
c. F. r. r., ISL ..................
And tonnage per mile of road thus:
East, 2,032 $50 ......................
c. T. K. R., 296, 956 .....
And gross receipts per mile of road may
be thus compared:
East. SIT, 80 ..............
c. F. II. r., 1851
Hence, reduction of rates increases the
profits of railroads when there is a CORE
spending increase of traffic, for the increase
Of traffic reduces the ratio of expenses If
the profit Of producers is limited, says Mr.
Lansing, or the price to consumers in
creased, production and traffic are equally
limited; the general wealth and the prof
its of the carrier are both restricted. 1t
follows that an increase in the profits of
the rail carrier is not at the expense of the
community, but is an accompaniment of
that general increase of wealth which has
been made possible at the lower rates of
transportation. The natural principles
regulating rates are competitive forces.
Railroads bid for business, and where that
is greatest the bidding is most active; so,
where there is least traffic there is least
competition. Rates are lowest where
greatest quantities are moved and highest
where traffic is least Greatest traffic is
possible in those things produced in larg-
est quantities, and for which the demand
is practically unlimited. These therefore,
have the lowest rates. They constitute pri-
marily the necessities of life, and second
arily, the cheaper articles which are the
common comforts of the poorer classes. In
crease in cost of commodities narrows their
consumption, and the incentive to carry
them at low rates is proportionally reduced
These principles, the parallels of which
govern in the competition of trade, affect
rates of transportation to the cheapening
of the neccsSaries of life first the comforts
second; the luxuries last and least, and all
this results in the greatest good for the
greatest number The conclusion of the
whole matter reached by the easayist is :
Controlled by the natural forces of COM
petition, the proprietor of railway con-
stantly works to advance the interests of
the nation.
In seeking to increase earnings he does
not increase rates, but the tendency of
rates is ever downward, in obedience to the
common principles of commerce, toward
minimum.
In seeking to advance his own interests
he works equally to advance the interests
Of the shippers, and so of the community
at large.
He cannot lessen the traffic of the road
without reducing its profits, nor restrict
the development of traffic without limit
ing its profits
To injure the shipper or interfere with
his interests, the railroad must equally in
jure itself.
Mr. Lansing asks, Is il not, then, safer
and better to leave regulation, classified
ton and establishment of rates with the
proprietors under the control of the nat
ural forces referred to, than to delegate it
to Legislature or Commission, whose in
terests in its proper execution are rela-
lively slight, and whose information at the
best cannot be compared to that of those
who make it the business Of their lives ~