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

ClQL0 anu Wits. tlC ICouit 10 oAhNiSi2
tial rates, and these, while causing COM
plant by some, are the source OF greatest
benefit to the many. 1t produces COMPETE
ton between places where otherwise none
exists, and brings competition to commod-
tiles which before were monopolies. And
So in its effect, by constantly tending to
reduce the selling price, it restricts profits
more and more, and brings into stronger
play the forces determining the cost OF
production. Hence result an action and
reaction which continually tend to reduce
the price of commodities to consumers.
Another force regulating values is the
power of railroad to increase its net In
come by increasing its traffic at lower rates.
More is to be made with small profits and
large sales. Every consideration, as he
specifies in detail, influences railroads to
increase production, trade and manufact-
ures and likewise keep it in the line Of an
increase of traffic at lower rates, for de-
crease of rates accompanied by a CORE
spending increase of traffic produces
larger receipts and larger net profit to
the railroad, as is apparent. In this line
the REcoRD-UNIoN has frequently COM
mented, to show the profound interest the
railroad companies have in the develop
ment and settlement of country, and to
emphasize the community of interest be-
tween producer and carrier, and shipper
and carrier.
Some expenses of a railway, as interest
and administration, remain fixed, UNI
changed by increase or decrease of traffic
a larger number are increased in a slight
degree, as superintendent, agencies, re-
pairs, etc What other charges remain
are increased by an increase of traffic to q
somewhat greater degree, but not in pro
portion to the increased business So, on
the whole, an increase of traffic may be
carried at less rate, and still afford a
larger net profit. This proposition is il
Illustrated by tabular exhibits Of tons car
ried, freight earnings, expenses and profits
on four of the greater railways of the
country Thus on these four great arteries
of commerce in 1878 the average tonnage
per one mile was l,203,651, and in 1880
2032,S6 The average rate per mile in
1875 was Gents 1853, and in 1880, $50
and the average net earnings per mile in
1875, being S4,974, was in 1880, with the
lessened rate and increased tonnage, 1921
Mr.. Lansing cites the Central Pacific
Railroad rs an instance in point, though
often mentioned as having very little COM
petition for the greater portion of its
traffic Yet for six years preceding De
cember 81, 1882, the rates indicated a SINH
lar relation to the volume of traffic, show
ing steady decrease with the In
crease of business. This reduction
has been, he AYERS, the result OF
the efforts of the company to in
crease It's traflc, rather than because OF
forces of competition. Another remark
able fact is pointed out, that the decrease
between the first and last years 1S77 and
1892 was greater on the Central Pacific
than upon the four great Eastern lines
l. e., the Erie Pennsylvania, New York
Central and Pittsburg, Fort Wayne and
Chicago. Thus in 1877 the Central Pacific
Railroad, with 1888 miles, carried POI 1888
tons one mile to each mile of road at 2.71
cents per ton per mile, while in 1882, with
3,04l miles of road, it carried 296,936 tons
one mile to each mile of road, at 81 cents
per ton per mile. The comparison is made
as follows: