Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1885-01-10

LD AlOel LlaIEGE With ~ ulGE
the Board has to deal, and a matter, too
of great complication and difficulty, is
that Of fixing and adjusting maximum
freight rates. Not only was it hard to de-
termlne upon terms of Justice and right
the amount Of the rates to be fixed, but
70 so adjust them as to cause as little
confusion and friction as possible, and
harmonic diverse interests.
There are two ways of arriving at g
conclusion as to what rates should be
put into rate schedule, and should be
pronounced reasonable by a Board sit
ting IN Judgment upon them, VIZ, com
parlsOn of tariffs prevailing upon differ
ent roads In various States, the character
and volume Of business done upon such
roads operating under the tariffs exam
lned and compared, and the earnings
made, and expenses incurred IN their
operation. Two roads may have an
equal tonnage per mile Of road operated,
their rates Of charges upon freight may
be identical upon the same classes of
goods and merchandise carried, the ex-
penses of operating the respective roads
may bear an equal ratio to the tonnage
carried, and yet their earnings may be
very dissimilar. This is brought about by
the character of the business brought
70 the two lines, respectively. The
road that carries the larger tonnage
per mile of those classes of goods upon
which the rates are highest will make a
better showing as to net earnings. If
two railroads, situated in respect to their
business as above indicated, are requiIe ed
to adopt the same rates, the one may
make a reasonable profit, while the other
may suffer continual loss. The same re-
suit is brought about in other ways. For
instance, the business of one company
may land this is frequently the easel re-
quire the haulage OF a larger number of
empty cars over its line than another,
and since the expense or cost of hauling
an empty car is nearly as great as haul
ing the same car loaded with paying
freight, its expenses are in greater ratio
to It's business. The cost Of fuel labor
and supplies are important items to be
considered In this connection, and these
vary IN different localities.
1t viii be seen at a glance that the
rates prevailing In one State cannot
either in reason or with safety be in all
cases, Or without due regard to varying
circumstances and conditions, adopted
for those in another. These may furnish
some guide, but not an infallble criter-
ion OF the rates that should prevail in
other States
1t may be stated as a rule, furnished
by observation and experience, that in
newer communities a smaller average
quantities Of those classes Of merchandise
or commodities produced or consumed
that bear the highest rates Of freight,
than IN older settled localities, where
population is more dense, production
more diversified, and wealth has ac-
cumulated. Not only does such diver
sity exist, comparing one State
with another, but the same rule ap-
plies as to different localities in the
same State. But notwithstanding these
elements of diversity of conditions OBJ
tanning among different roads in the
same State, with numerous others not
mentiOned-such, for instance, as the
original cost of some lines being greater
than others, the expense of operation
greater in some instances than in others
by reason of grades, curves, expensive
bridging, etc.-such is the relation of the
business to the greater portion of the
railroads IN the State that it is quite i'm
possible to make a class of rates upon
enc road without affecting those upon
others For example, the Union Pacific.
Kansas Division, and the AtchisOn, To
pekR & Santa Fe railroads, compete for
business between Kansas and Colorado.
1t is evident that their rates must be the
same between those points, if it is sought
to maintain a division of the business !
between them. These two lines run par
allel with each other from the East to |
the West line Of the State. with no other |
railroad except the auxiliary lines of
each, Intervening between them. The |
territory between them IS competitive |
territory. If their rates are equal for |
like distances from Missouri river points !
they may be expected to divide the bus
mess of that competitive territory in
nearly equal proportions; otherwise the
lowest raJes take the bulk Of the freight |
from the common territory.
So that, however unequal other con-
ditiens may be, the most obvious con-
sideratiORs of self-interest dictate the
same rates for like distances upon both
lines. The like principle might be
further illustrated by reference to other
examples; for instance, the Kansas
City, Fort Scott q Gulf Railroad. This
road runs from Kansas City through
the border tier Of counties to the south
line of the State 1t is crossed at differ
emit points along it's route by other roads,
having ST. Louis and other Eastern con-
neCtiOns. These intersecting roads, con-
shutting the short lines to Eastern COM
mercial points, establish rates for their
Road must conform upon nearly all
freight carried over its line, either to or
from Kansas City, Notwithstanding the
greater distance of the haul. A few con-
will show the necessity for
this. The market price of grain and
other products the surplus of which
is consumed abroad, is fixed at
the place of consumption, and is
determined by the relative amount
Of surplus and the foreign
demand. The price anywhere else is
found by the cost of transportation and
deducted from the price of the
market. To compete in the
carrying of grain, stock, etc, from South
eastern Kansas and Western Missouri
with intersecting lines, having shorter
routes to St. Louis and Chicago the Fort
Scott & Gulf road must carry these pro-
to Kansas City at rates which win
enable its Eastern connections at that
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