New-York tribune., 1885-01-26
RAylUAYs FREIGHT RATES AND LABOR.

RAILWAYS, FREIGHI hA1Ho AM H"D
The passage of Mr.. Reagan's bill by the
House. and the tone of several messages by
Western Governors, indicate that the war
AGAINST railway corporations has not yet ended.
Tho situation invites serious consideration in
the public interest.
BEFORE this interference began, the railways
had been reducing their freight rates beyond
all prccedent The Chicago New-YOrk grain
rate in 1868 and 1866 ranged between S3 cents
per 100 pounds, the highest, and AZ cents, the
lowest for the two years by 1875 1t had so
fallen that 40 cents was the highest, and Is
cents the lowest. The average in l S65 and 1866
was 63 cents in 1876 it was 20 cents But the
decision of the United States Court confirming
the granger laws, which had previously been re-
sisted by the companies as unconstitutional and
invalid. was expected by Western producers to
cause n great change in the rate. 1t is fact,
howeyer, that since 1877 the reduction mas
been much less than il was prior to that time.
Under the pressure of necessity, feeling COM
peled to defend themselves ut any cost against
threatened bankruptcy, the trunk lines adopted
the pooling system, aud have since labored with
some measure of success to restrain the COM
petition which had previously reduced rates
with such rapidity. Accordingly, during the
wear 1884, 80 cents was the highest rate, and
8 cents the lowest But the latter lasted for
very short time only, and the average for the
year was about % cents
II does not appear, therefore, that legislative
interference has resulted bcnccially to the
people. But it has wrecked n great many COM
panes, and now threatens to wreck great
many more. From 1865 onward, as was shown
by Mr. Atkinson in an essay published last year.
the reduction in the cost of transportation OF
Western crops to the seaboard more than
enough each year to pay for the entire cost OF
railways built in the succeeding year. To arrest
that progress toward cheaper rates appears TO
be the natural tendency of Congressional or
legislative interference. But moreover, the
building of new railways depends upon the
confidence of capital. 1t is estimated that. with
population increasing at the rate of nearly
l.. 5000 yearly. the construction of about
6. 600 miles of Few railroad each year is ncces-
sary to supply additional facilities for trans
portaton. Under the influence of the granger
laws, however the building of roads suddenly
declined, SO that only 2,2Sl miles were built In
1877, aud 2,6S7 in 1878. During the year
1884, in consequence of the distiust of capital.
only about 1000 miles have been built, and II
that distrust is to be increased by Congress
sional and legislative action, it may be that the
construction will again fall to about 1000
miles in a year. Avast number of men must thus
be thrown out of employment. In building 1000
miles, 1250O0 men may be employed In
building 5000, 375, 900 men so that the de-
cline in railway building, whatever the cause,
may directly throw out of employment an army
of go, 900 men, upon whom from 1906 to
/ 900, 900 people may depend for subsistence.
If there were anything to be gained by the
policy of interference, the case would be differ
ent. In the light OF facts it seems clear that
there is nothing to be gained, while great losses
TO industry as well as to capital must result.