The morning news. [volume] (Savannah, Ga.) 1887-1900, 1888-12-01
INTERSTATE COMMERCE.
r4E COMMISSION MAKES ITS
ANNUAL REPORT.

rhe Causes of Pooling and Consolida-
ton and Their Effects Pointed Out
southern Roads Accused OF Slowness
in Bringing Their Tariffs into Con-
formity with the Law.
WASHINGTON, Nov. 30.-The annual re-
,ort' of the Interstate commerce commission
overs about 70 pages of print, with appen-
ices amounting to some POO pages The
eport proper is now in type, and che COM
leted volume will be ready for distribution
n a few days. Some extracts are herewith
iven:
From the best information available, the rail
Dad mileage of the country on June 80 1888, is
stimated at 152,7S1 miles, of which 2,312 has
cen completed and brought into operation
rthin the six months preceding that day. The
ailway construction in 1886 was SAL miles and
1857, 1268S The number of corporations
represented in the mileage was 1,251, but by
eason of leases or other contract arrangements
many corporations control and operate one or
nore roads owned by other corporations, and
he whole number making reports Of operations
4 the date named was 665.
FORMAL COMPLAINTS.
A summary of the formal complaints is as
ollows: Cases heard and decided SO; cases
card not vet decided, 6; cases hearing, not
asses suspended by request, 10: cases assigned
or nearng9. Total 107
In the section of the country north of the
potOmac and Ohio, and east of the Missouri,
he cases in which greater charge is made for
horter transportation are few and their cir
qImstances are such that complaint is not
,ften made that they operate progressively. In
July of the present year, however, the Chi
cad Co., having line from
,hicago to 81. Paul and Minneapolis, announ-
ed TO the commission its purpose TO reduce
cry largely its rates between the termini of its
Dad without reducing intermediate rates.
TWO PROPOSITIONS.
The company laid down two propositions as
ustifyiug its action: First. it's rates to interme-
late stations were perfectly just and reason
.5le and therefore there was no injustice in
maintaining item; and second the rates be.
lown by the unfair competition of
mother line. Tue reasoning seemed
trong and was certainly plausible. But
his was a state of things that at the pleasure
# the railroad companies acting generally, or
wen of single companies disposed to act in hos
fifty might be made to exist at any point of
abroad connection in the country, and if
eater charge on a shorter haul was admiS sibe
n the case under investigation, the rule OF the
tn section would be of no practical value what
ver ANY railroad company might by
he action of competitors be freed of its
obligation and be itself absoved in
bturQ. Inc legislature never intended UDlS
consequence. It did not intend, as the commits
ion believed, that carriers subject to the law,
hould at pleasure thus make the rule of the
statute Intellectual The carrier under investi-
PATTON graded its rates accordingly and the OBJ
ectionab'e rates made by the carrier COM
planned of were also soon discontinued.
sLowNEss IN THE SOUTH.
In the southern and southwestern states,
he commission has had reason to think the
.arriers were moving more slowly in bring
ng their tariffs into conformity with the
Eeneral statutory rulelthan in other sections.
The commission recognizes the existence of
peculiar difficulties in these states, growing
)lt of the fact that water competition is
elt at many points, at some of which it is
II controlling force, but this
would not excuse a failure to keep
iae rule of the statute in view, or to press
coward it as rapidly as was found to be
practicable. Not being satisfied that this
iuty has been sufficiently apprehended and
deserved by the carriers, the commission
has ordered an investigation to be made of
he whole subject on Dec IA at it's rooms in
WASHINGTON. when it is intended to make
thorough c-alnination of the existing rate
heets q, If to give all parties concerned an
opportunity u DE heard.
EFFECT OF THE LAW.
effect of the interstate CONNIE CO act upon
The common carriers, ard says that although
some railroad managers have declared it to
have had a damaging effect, the commits
81 is possessed of no evidence showing
ina. the general result has been otherwise
than beneficial. PROFESSIONALLY, the report
says, the railroad business of the country
mas suffered many and severe losses during
.he year, but these have not been due to the
Interstate commerce act but to strikes,
the opening up of new roads,
which in some cases parallel old lines, and
rate wars. With reference to the wars
which have taken place in the northwest
and among the trunk lines during the year,
the report saws:
The legal right of carriers to reduce their
general scale of rates to any extent under the
law as it now stands is believed to be unques-
Lona6ie They have proceeded to do so to a
destructive extent, and whether with any ulti-
mate benefit to themselves is at least very ques-
tonable
OBJECT OF THE STATUTE.
The statute, in its requirements of reasonable
and lust rates, has had in view the protection
OF the public from extortion and from unfair dis
urlhlnailonS. 1t does not assume that railroad
companies will need protection against their
rates heing made unreasonably low, and it has
noI conferred upon the commission any
power to order an increase of rates which it
: an see are not remunerative. In general, there
lore, 1t may be said that the railroad managers
possess the power to destroy the interests not
only OF their rivals, but of their own stockhold-
eIS II they will recklessly make rates that lead
- bankruptcy. Independent OF any returns to
tue stockholders, 1t is important that rates be
lemunerative because Of the effect that INSULT
Cleht revenue may have upon the service per-
formed for the public. Good service and I'm.
reasonably low rates are antagonistic ideas.
FAIR RATES.
:, The public will never object to fair rates, but
II VIII never be enlightened as to what are fair
rates, and disposed steadily to assent to their
,li ulehance, SO long as railroad managers in
'uSir ABSURD and destructive wars are perpet-
ANY ana IN most emphatic manner, by cut
tttus laiI rates, informing the public that some
e eatg Iess-perhaps greatly less-can be
Ecu IN dealing with complaints against railroad
..Lplupanles arises from the fact that to
ane public mind the railroad interest Of the
tVpoeuntry seems to be in some sense shy, so
Ia When there Is cause for complaint In
oySCem anywhere, the whole interest is charge
aule with a degree OF moral. IL not legal re-
on.s,iollity. 1t is perfectly reasonable to ex-
,VcD mat the carriers of the country will, in so
~ as IL IS found practicable to do so, make such
yyrnJ ana general arrangements among their
s ,Jiuioer mat the public when availing them.
OF their services shall find an arrangement
SIN Ien one adequate for the purposes OF any
e'hsie transaction.
ONE OF THE DIFFICULTIES.
,o me olificulty in the way of making such ar
ra nsements universal is connected with the
suvS,essl'y OF having some means OF enforcing
s,s the carriers themselves the obligations,
tn al or legal, that would grow out OF them.
ta lV soluntary establishment of such extensive
ra1 po,,slolty would require such mutual ar
a 1o'senlents between carriers as would establish
common authority "A hitch bnuld ha vasfad with