New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-12-01
OVERSEEING THE RAILWAYS.
REPORT OF TIE INTERSTATE COMMERCE
COMMISSION.
BENEFICIAL RESULT OF THE LAVA sUBsTI
TUTE FOR POOLING NEEDED TO STOP RUIN
Gus RATE WARS.

| TUTE FOR POOLING NEEDED TO STOP RUIN
| Gus RATE WARS.
| Washington, Nov 3O.-rhe annual report OF tho
Interstate Commerce Commission will cover about
seventy pages of print with appendices amounting to
some two hundred pages additional summary Of
rs contents Is given From the best information now
available the railroad mileage Of the country on juno
| 30 1888, is estimated at 152,7sl OF which 2,312 miles
had been completed and brought into operation within
| the six months preceding that day. Tho railway con-
strucion In 1886 was SAT- miles; In 1887 1t was
| 1858 miles.
| summary Of tho formal complaints Is as follows:
Cases heard and decided So heard not yet de-
| cldcd q hearing, not completed, o cases with
drawn settled % SUSPENDED by request, 10;
cases assigned for hearing, o. total. 107.
Regarding the long and short haul the report SAYS
that in the section the country north Of the Potomac
and the Ohio and east OF the Missouri the In
which the greater charge made for the shorter trans
poitation are few and their circumstances arc such
that complaint is not often made that they operate
opprcsslvely In July Of tho present year. however,
tho Chicago, ST. Paul and Kansas City RAILROAD Com
pany announced to tho Commission It's purpose to re
ducc largely ITS rates between the cmnl of It's road
without reducing intermediate ratcs. Tho company
lard down two propositions as justIfyIng Ito action
first, its intermediate stations were perfectly
Just and reasonable, and therefore. there was no In
justice In maintaining them second the rates between
| It's terminal points forced down by the unfair
competition Of another limo.
| Tho reasoning seemed strong. But this was
state OF things that, at tho pleasure OF the railroad
| companies acting generally, or even Of single COM
panics disposed to act IN hostility, might be made to
at any point of railroad connection in the coun-
try and If the greater charge on Inc shorter haul
wa admissible In The unde. Investigation, the ruo
of the fourth section would be of practical value
whatever. Tho Legislature never intended this con-
sequence III, carrier under investigation confOrmed
IN fh uSio nd
The ocean composition Is still recognized by tho
extent controlling through rates upon
overland traffic, and Is relied upon as justification
for somewhat higher rates to points this side OF tho
Pacific Coast terminals than made TO points SIT
| uaed directly on the Pacific Coast. With this cx-
ception and some Others OF minor importance the
rule Of the shorharl provision of the law has been
put In force upon the ranscontnental roads. where
It's operation and effect be observed under what
now appear to be favorable conditions
SOUTHERN ROADS TO BE INVESTIGATED
In the Southern and Southwestern States tho Com
miss on has had reason to think the carriers were
moving more slowly in bringing their tarihs INTO
confo NIFTY with tho general statutory law than III
other sections. The Commits Ion recognizes the ex-
i,ence Of peculiar difficulties in those states growing
out OF tie fact that water competition IS felt at 50
many points at some of which It IS of controlling
force but this would not excuse the failure TO Keep
the rule OF tho in view, or TO press toward
It as rapidly was found TO DO practicable Inc
Commission has ordered an investigation to be MADE
of the whole subject December To- at its rooms In
Washington.
Tho report says that although some railroad man
aecr, have declared the law TO have had a damaging
effect the Commission is possessed OF no evidence
showing that the general result has been Otherwise
uan beneficial UnqueStonaby. the report says, tho
railroad business Of the country has suffered many
and severe losses during the past year. but these have
not been due to tho Interstate Commerce act but to
strikes the opening up OF new roads which In some
cases parallel other lines, and rate wars With ref
erence to the ratio which have takon place In
the Northwest and among tho trunk lines during the
year. the report says:
Tho eject Of the decisions Of the
Commission has been toward improvement
in the relations between the carriers instead OF
toward the originating or intensfyihg OF con'O
VERSES Efforts Of the Commission to obtain from
the parties evidence practices they suspected have
been wholly Intellectual, and tho OF rates has pro-
eecdcd without tho possibility OF any external authority
lnterposlng eGcctually TO bring It to an end
RATES LOWERED FOR sToCK-JoBBING PURPOSES.
The making Of mreasonably low rates, the report
lntmates IS often for stochiobbing purposes or to
compel the purchase of tho road by competing lines
Persons having control Of railroads may deliberately
make insufficient rates in the expectation Of profits
TO be Indirectly and Improperly derived thcrefrOn
Every case OF be regarded as one Of this
character
The statute has had in view the protection Of tho
hubble from extoriOn and from unfair Determinations.
1t does not assume that railroad companies Will neod
protection against their rates being made unreasonable
low and has not conferred upon The Commission any
power to order an increase OF rates which II can SEQ
are not remuneraiivc. Independent oi any
returns to stockholders It is important that rates be
femunerativc because Of the effect that insufficient
revenue may upon the service performed for tho
public. Good service and unreasonaby low ratios arc
,f-tfc -bnrgl al n In
Stances the report continues, awakened TO the fact
that their revenues have been seriously injured by
disastrous rate wars, which often originate from
trining causes. bu; which kept up because tho
officers OF the road too proud to rccede or feel
that they cannot afford to assume the responsibility
involved In apparent surrender. The danger of COM
hitting the ic-mHhng power to subordnates whose
training and experience have generally fitted them
TO deal with matters that involve questions of policy
Is touched upon, and the report says:
II boards OF direction were frequently to exercise
their authority OF supervision influence would
doubt be Wholesome, but IT, would be even more 50 II
stockholders meetings TO manifest Enthusiastically
their purpose their interests should not be reck
lessy and ncod.cssy sacrificed The difficulties Of
the whole subject freely admitted, but the manner
Ia which they net cannot fail to be unquali
ned.y cond Nothing seems surprising than
The fact that a railroad manager who will neither take
steps by law to put stop to secret cutting Of rates
which he publicly charges, nor furnish evidence upon
which others may do VIII nevertheless sacrifice for
his shan ehulders millions OF revenue to punish It,
UNITY OF RAILROAD INTERESTS.
One OF the chief pcrpcNlties encountered In dealing
with complaints against railroad companies arises from
the fact that public mind the railroad interest of
tho country be In some unity 50 that
when there for complaint IN tho system any
where the whole interest IS chargeaoc with some dc
gree moral ii not legal responsibility. Ii Is per
iccty reasonable 10 expect that the carriers 81 inc
country WILL n 50 far as II is found practicable 10
do So make such Joint and general arrangements
among their number mat the public when a'dlllnS
themselves of their services shall lind arrange
mcnt with adequate for the purposes of any single
Transaction. one difficulty In the way OF making
such arrangements universal IS connected win lhe
necessity having some means of enforcing among
the carriers themselves thc obligations, moral or
legal, that would grow out OF them. with pooling
prohibited, the tendency among the railroads seems
likely TO be In the direction OF consolidation a. the
only means of ciicctual protection against mutual
and Hat fs4fe u.ur-