The Progress., 1888-12-15
THE INTERSTATE Law.

The Commission Charged with Its Ad.
minss4ra4lon Makes It's Report - Tho
Long and shoYt Haul Clause Must He.
Enf0rced-EyilS of Rate-Cutting.-Com-
mont Upon the Proposed Railway Trust.
WASHINGTON, Dec. L-The report OF tae II-
ser-State Commercs Commission which
will be ready for distribution in few
lays, estimates the railroad mileage Of the
country on June 60, 1883, at 152,7Sl miles, Of
which 2312 we're completed within the pre-
ceding six months. The number of cor
porations represented In the mileage is
i,25l. but by reason Of leases, ETC.,
many corporations operate roads owned by
other corporations, and the whole NUM-
Der making reports OF operation was 6e5. OF
the 1O7 cases submitted to- the commission so
have been decided % Withdrawn or settled, 1G
suspended by request and ~ are still pendinga
The report says there have been few cases nn.
der the long and short-hnul clause in the terri.
tory east OF the Mississippi and north Of the
Ohio river.
With some exceptions, resulting from ocean
competition, the rule of the shOrt-haul provis:
ion OF the law has been put in force upon the
transcontinental roads, where its operations
and effect can be observed under what now
appear to be favorable conditions In the
8 .uthern and Southwestern States the COM.
mission has had reason to- think the carriers
were moving more slowly In bringing their
tariffs into conformity with the general stat
utory law tn an in other sections. An invests
gatIon has been ordered on Deeember IS.
The commission is in possession OF no evil
dence showing that the operation of the law
has been harmful to the carriers, and is fully
convinced that the effect has been BENEFICIAL
Railroad business during the year has suffered
severe losses, but these are not traceab to
the act to regulate commerce.
With reference to the rate wars In the North
west and among the trunk lines during the
year the report says: 'sThe war OF rates pro-
ceeds without possibility Of external authority
nterposing to bring it to an end. The legal
right OF the carriers to reduce their general
scale OF rates to any extent under the law as it
now stands is believed to be unques tionable;
they have done SO, and whether with any ulti-
mate benefit to themselves is at Least very
questionable p
The making of unreasonably low rates. the
report intimates, is often for stock jobbing
purposes, or to compel the purlhase OF the
road by competing lines. Persons. having con-
troll tof railroads may deliberately make in
sufficient rates in the expectation OF
profits to be indirectly and improperly
derived therefrom Every case OF rate war
may be regarded as one Of this character.
Present profits are sacrificed on calculation
that by crlppling rival or forcing an agree
ment or compromise on some matter of con-
tention the loss will in time be more than made
up. In the majority of such cases, the losses
exceed the gains
The statute has not conferred upon the COM
mission any power to order. any increase OF
rates which it can see are not remunerative.
In general, therefore, it may be said that rail-
road managers possess the power to- destroy
the increases not only of their rivals but of
their own stockholders. Good service
and unreasonably low rates are antagonistic
ideas. The danger of committing the rate
mail lrtry
and experiences have not generally fitted them
to deal with matters that involve questions OF
policy is also touched upon.
The report says that the tendency among
railroads seems likely to be in the direction Of
consolidation as the only means to. prevent
rate wars, now that pooling is forbidden, and
adds:
'.But any thing equivalent to a creation OF
what is now technically denominated as a trust
could hardly be supposed possible, even IL the
parties were at liberty to form it at pleasure. If
the parties could come in to harmony on the sub
lect an arrangement of the sort would be so
powerful in its control over the business inter
ests OF the country, and SO susceptible to pses
for mischievous purposes, that public policy
could not for a moment sanction 1t, at least un-
less by statute it were held in close legal re-
straints and under public control Like arrange
ments in other lines of business are already
sufficiently threatening to- the public in
the con centration of ra lroad authority can not
reasonably expect that any thing OF the sort
to control the transportation of the country
will be provided for by legislation. Lacking
concentration Of authority, railroads can do
much toward better relations with the public.
and do better service by first establishing bet
ter relations among themselves"
While the commission is not at this time
prepared to recommend general legislation
toward the establishment and promotion of re-
lations between the carriers that shall bett
subserve the public interest than those which
are now common it must, nevertheless, look
forward to the possibil ty of something of that
nature becoming at some time imperative un-
less great improvement in the existing con-
d.tions is voluntarily inaugurated.
The report next considers the subject OF the
effect Of the law upon cities, showing that the
act has in some cases benefited consuming in
terror cities and injuriously affected dlstribut-
ing points formerly favored in rates. The COM
mission believes uniformity in classification
as fast as possible without serious mischief is
desirable.
cred, and the commission recommends re-
8ception place larger than Castle Garden, from
which those not legitimately connected with
immigrant transportation shall be excluded.
Interior lines should have agents there
on equal footing. Payment OF COM
MoS1OnS ZOE - IOutluS Immigrants, ana
for procuring the shipment Of immi-
grants from foreign countries, should
be declared illegal and made punishable The
commission should have power to- fx immi-
grant fares. These objects can not be fully
accomplished except by the Federal Govern
ment taking complete control OF the whole
subject.
8 The subject OF the payment OF commissions
is treated extensively. The eommlss on be-
lieves that the evils Of the system exceeds its
advantages The subject is brought to the at
tention Of Congress.
The subject of overcapitalization is recog-
nized as an exceedingly Important one, but 1T
is believed that it can only be handled grad
ually and in detail. It has been found impos-.
sible to satisfactorily obtain Immediate infor-
nation which shall show the cost of railroad
property, franchises and equipments
Another quest on of construction ought also
10 be settled by legislation in order to take
away the pretense on which certain through
lines are now claimed to be local lines in fact
and through lines only in appearance. The
commission thinks 1t q line is in fact q through
line by reason OF ownership the corporation
controlling ought not to be at liberty to make
through rates or to decline to make them at
pleasure The commission fayors joint tariffs
and through rates, and recommends that the.
tca nnu oad ind f1pF in infa fa