Wichita daily eagle. [volume] (Wichita, Kan.) 1884-1886, 1885-02-08
KANSAS WHEAT SHIPMENTS.
Commissioner Turner Has His Say.

| present grain rates would be advisable WAS
received by them, | was absent from the
city, therefore did not have the opportunity
of joining with my colleagues in their reply,
which have carefully read, and will say
that / fully concur in the conclusions
reached by them; yet the question involved
is Of such importance that i have deemed 1t
best to more fully express my views upon
the reasonableness of any rate in separate
communication. There is perhaps no ques-
ton in which our people are more Interested
than that Of freight rates, and yet, possibly,
there is no question so little understood by
the general public. For this reason l will
| not be able 10 be brief as l would like
Railroads cannot prosper when the peo-
ple who patronize them do not prosper, nor
can the people along any line of railroad be
| well served if the Company is not in pros
porous condition. Railroad interests are so
Identical with those of the people that when
viewed from an impartial standpoint rail-
roads and their patrons can scarcely be con-
sidered other than partners in business. As
| such il is the duty of each TO help the other.
The apparent antagonism existing between
| them IS more imaginary than real; yet there
are many instances where railroad officials
strive 10 take undue advantage Of their pat
rons Upon the other hand many indiyid-
uals and COMMITTEES frequently strive to take
| undue advantage Of railroads.
There are many conflicting ideas in regard
to the principles established by transporta-
ton companies in determining proper rates
upon the different commodities transported.
=. a l. f,fl.
stood there would be much less complaint.
Ii is TO be regretted that the representatives
of railroad interests do not take more pains
to inform the public upon this important
question.
If rates could be based entirely upon the
actual cost of transportation, there would be
less trouble in adjusting them, but upon this
basis the adjustment could not so well be
made before the service had been performed
rs afterward, for actual cost depends greatly
upon the amount of business done. In esti-
mating cost II is necessary TO know whether
one car of freight or twenty or forty cars
constitute the train performing the service.
At some seasons of the wear freight is
moved in one direction, which necessitates
the hauling of empty cars in the other, while
at other times freight is moved in both d.
rections. Even the weather effects the cost
OF carriage of freight None Of these ele-
nents, so important in determining the
actual cost, can be accurately determined
before the service is performed. If they
could be, or could they be approximately
determined, It would not solve the problem
What is Just and reasonable rate >"
Such rate cannot be determined upon that
basis alone.
Every railroad company justly endeavors
to raise a sufficient revenue to pay its fixed
charges, operating expenses and rea-
ronabe dividend upon Its capital
stock Some of the larger and stronger
systems of railroads succeed in this, but
j shall endeavor to show that it is not be-
cause of exhorbitan. rates charged. There
are many railroads also which do not pay
operating expenses, but it Is not because
their rates for transportation, rs compared
with other companies, are not sufficiently
high II Is because the business done by
these roads Is not sufficient TO produce the
necessary revenue, except by the receipt of
such eXhorbitant changes which if imposed
would operate almost as a total embargo.
Successful management of a railroad Is best
attained by securing the maximum possibIi-
tv Of transportation itself rather than the
highest possible rate therefor. Ii is well
established fact that when the rate charged
upon tfaAiiiNNAAf - AVp ~
shes rather than increases the amount to be
transported. Therefore it is fair TO presume
that. when a rate upon any class of freight
prevents its being moved without profit TO
the shipper. that rate is too high and should
be reduced, not only for the good of the
shipper, but for the benefit also of the com
pany-
Transportation companies long ago learn
Ell that they could charge much higher
rate for the transportation of certain kinds
of freight without complaint from the ship
per than upon certain other kinds of equal
weight and bulk, and possibly OF equal value.
This led 10 the system of classification which
]. now unanimously adopted by all trans
portation comps aies, and which is so little
understood by the general public, and it is
not surprising that so many people constant
" complain of discrimination in freight
rates, while they are ignorant OF the fact
that il is the only system that can he adopt
ed that will enable our heavy and less ex-
pensive articles TO be transported at rates
which the people can afford TO pay.
The actual cost of hauling an empty train
is almost as much as the cost of moving
loaded one, therefore, when "a train must be
hauled over the road with the engineer, fire
man, conductor and brakemen, it becomes
a matter of great importance TO the COM
pany to secure as much paying freight as
possible TO be hauled upon that train. En-
cessive rates cannot secure it, and il is to be
regretted that many traffic ma nagers are Of
ten so slow in comprehending this very i'm
portant fact.
Upon these basis. then, We are TO deter
mine whether or not the present rates upon
grain in our state is too high.
England is the consumer of our surplus
wheat The value of il in that market is de-
termined by the reported surplus not only
in this country, but in the world, and this
surplus is estimated from time to time as the
crop is being grown. So accurate is this es-
innate that dealers not only in Europe. but
throughout the world, know almost TO "A GER
trinty the amount of surplus in the country
long before it is harvested. | cannot believe,
therefore, that reduction in freight rates
would permanently reduce the value in that
market.
The price in New York is determined BY
the price in Europe liverpool being the
market). less the cost of trans |
portation. insurance. etc, from New York TO |
Liverpool. The price in Chicago is deter |
mined by the price in New York, less cost |
of transportation, insurance, etc, from Chi |
cago 10 New York. The price in Kansas |
City or other Missouri river points is deter |
mined by the price in Chicago, less cost Of |
etc, from the Missouri river |
TO Chicago, and the price at any point in |
Kansas is determined by the price at the |
Missouri river, less the cost of transporta-
ton, insurance, etc, 10 the Missouri river
The producer Of wheat in New York can |
better afford 10 pay a higher rate for the |
of his wheat 100 or 200 miles,
than a producer in Kansas for haul of the |
same distance, for the reason that the Kansas
producer not only pays for haul equal in
distance to the haul paid by the New York
producer, but in addition, must paw the rate
from the Missouri river to New York
1t Is true that farms in New York state are
much more valuable than farms in Kansas.
but the owners of Kansas farms must
pay much higher prices for their gro
,erieS. dry goods and the agricultural nipple
nents with which TO cultivate his farm, than
ices the the more eastern farmer.
There Is no corporation, individual or local
interest that should in any sense be protect
ed al the expense Of the whole people, but
he general prosperity of our state depends
almost wholly upon our cereals. because
his Is an agricultural state. The merchant.
he manufactures, the banker. the mechanic,
he common lsborer. ss well rs the common
'srrier,alI depend 10 very great degree up
N our farming interest. TO protec; this in
crest, therefore. Is 10 not injure any, but
promote all Others in our state. and no sin