Butte semi-weekly miner. [volume] (Butte, Mont.) 1886-1890, 1888-12-05
ALL o RAILROADS
THE INTERSTATE COMMERCE CON-
MISSION SUBMITS IT'S REPORT.


MISSION SUBMITS IT'S REP0RT.
The Number OF. Miles of Railroad Operated
in This Country-A Good Word ON the
Subject of Rates Wars.-How stock
holders, But Not the Public, are De-
frauded by These Contests-The Tend
ency of Consolidation OF Interests.
WASHINGTON, November 30.-The annual
Interstate commerce commission report is
now in type. From it is the following,
taken from the best information now
available:
The railroad mileage Of this country on
the Both OF June. 1888, ii estimated at
152, 7S1, OF which 2.312 miles rave been
completed and brought into operation
within six months OF that day.
Asumlnary is made OF the formation OF
formal complaints OF the 107 cases sub
| mitted-3O have been decided, six not yet
decided, nine hearings not completed,
twenty-threes Withdrawn or settled, ten
suspended by request, nine assigned for
IEEA
hearing.
Long and short haul, in the section of
country north of the Potomac and Ohio
and east Of the Missouri, cases in which
greater charge is made for shorter trans
p~ortation and their circumstances, are such
that complaint is not often made, but they
operate progressively. With some excep-
tions, the result of some ocean competition,
| the rule OF the short-haul provision OF law
has been put in force upon t~rans-conti-
mental roads, where it's operation and best
interests may be served under what now
appears to be favorable conditions. Inthe
SOUTHERN AND sourH-wEsTERN STATES
the commission has had reason to think
the carriers were moving more slowly in
bringing their tariffs into conformity with
the general statuatory law thar in other
sections. Not being satisfied that this duty
has been sufficiently apprehended AMI OBJ
served, the commission has ordered an in
yestigation to be made Of the whole sub
iect.
The report then takes up the subject OF
the effect of the Interstate act
| upon the common carriers, and says that
although some railroad managers have de-
clared it to have had a damaging effect, the
commission is possessed OF no evidence
| $ owing that the general result has been
otherwise than beneficial The railroad
business has suffered in the past year, not
| because OF the Interstate m act,
| but owing to strikes, new para llel lines, and
rate wars. With reference to rate wars in
the Northwest and among the trunk liues
| during the year, the report says: las is
commonly the case in rate wars, the trunk
lines difficulties resulted from suspicious or
the part of the carriers respectively, that
| their competitors were cutting open rates, |
and reductions were made to recover
freight which parties to the agreement
claimed was their due, but which they were
not getting because OF
ECRET CUTTING BY OTHER
The efforts OF the commission to obtain
evidence OF the practices suspected have
been wholly Ineffective, and war rates pre-
vail without possibility of external author
ity interposing to bring it to TN end.
The making OF uTreasonably low rates,
the report lntimates, is often for stock
jobbing purposes or to compel the purchase
OF the road by competing lines. Persons
having control OF railroads may deliber-
alely make insufficient rates in the expec-
tation OF profits to be indirectly and i'm
properly derived therefrom. Every case of
| "dE may US IeSdiueu dis One I'll Ills CldttlC-
ter. Tue present profits are sacrificed on
the calculation that, Gripping a rival, or
forcing an agreement or compromise on
some matter OF contention, the loss will in
time be more than made M. In q ma
jority OF such cases, the losses exceed the
gains.
The statute had not conferred npon The
commission any power to order any in
crease of rates, which it can see are not re-
muneratiye. In general, therefore, it may
be said tina railroad managers possess to
destroy interests not only OF their own
roads, but Of their own stockholders. They
will recklessly make
RATES MAI LEA TO BANKRUPTCY.
The question often becomes of high
moment, whether it is wiser to meet the
reduced rates OF II competitor or let the
business go. Yet,the decision of this ques-
ton is left by interested ones in the hands
OF subordinates. who, apparently, have no
other notion upon the subject beyond the |
rule that every cut must be promptly
met Nothing seems more surprisingthan
the fact that a railroad manager, who will
neither take steps by law to put
d step to the secret. cutting
pf rates, which he publicly |
charges, nor furnish evidence upon which
oUhefS may doSo, Will nevertheless sacrifice !
for his shareholders millions OF revenue to
punish it. A unity of railroad interests, it
is reasonable to expect, the carriers of the
country will, where practicable, make such
JOINT arrangements that the public shall
ind arrangement with one adequate for the
purpose OF any single transaction.
There should be some means OF enforcing
among carriers obligations, moral or legal,
that would grow out OF such arrangements.
tendency among railroads seems likely
to be IN the direction of consultations as
the only means Of
MUTUAL PROTECTION AGAINST RATE WARS.
But anything equivalent to the creation of
what is now technically denominated as
trusts" could hardly be supposed posi-
BILE, even II the parties were at liberty to
form it, as the pleasure is lacking concen-
t~ration. /
Railroads can dc much toward better re- I
lations with the public, and do better '
by first establishing better relations
among themselves. The need OF this is very ,
iinpe ative. la all cutting of rates the ,
party beginning it makes charges or insin- :
against it's competitors. Carriers :
rates have proclaimed that re- +
duced rates were all that could be Justly y
demanded, when persons having experience
knew that persistence in such rates would
cad directly to bankruptcy. Animpartial
observer is compelled to say that such
methods do not belong to the present age. f