River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1888-12-06
THE INTERSTATE LAW.

I
The Commission Charged with It's Ad.
ministratiOn Makes Its Report The
Long and short Haul Clause Must BE
Erforced-EviIs of Rate CuttIng-Com-
ment Upon the Proposed Railway Trust.
W tsHIEGroS, Dec The report OF the In
.er-State Commerce Commission, which
VIII be ready for distribution in q few
lays, estimates the railroad mileage of the
sountry on June so. 1888 at 152.7sl miles, Of
which .3i2 were completed within the pre-
seding 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 mum
Der making reports OF operation was D or
the l07 cases submitted 10 the commission so
have been decided. % wifhdrawnlor settled. 10
suspended by request and ~ are st Il pending
The report says there have been few cases IN
der the long and shOrthaul 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 sho-t-haul provis-
ION OF the law has been put in force upon the
trauscontinental roads, where its operations
and effect can be observed under what now
appear TO be favorable conditions. In the
S uihern and Southwestern States the COM
mission has had reason 10 think the carriers
tar rs into conformity with the general stat
ntoFy Law tn IN in other sections. An inYesti-
gation has been ordered on December IS.
The commiss on is in possession OF no evi-
deuce SLOWING that the operat on OF the law
las been harmful 70 the carr ers, and IS fully
convinced that The effect has been beneficial.
Railroad business during the year has suffered
severe losses but these are not traceable 70
the act 10 regulate commerce.
With reference TO the rate wars In the North
wet and among the ;~unk Ines during the
year the report says: The war OF rates pro-
eeeds without possibility OF external authority
nterposing 10 bring It TO an end. The legal
right Of the carriers 10 reduce their gene al
scale OF rates TO any extent under the law as It
COW stands is believed to be unquestionable;
they have do e so, and whether with any ulti-
mate benefit to themselves is at least very
questionable"
The making OF unreasonably low rates. the
report intmates is often for stock iObbing
purposes, or to compel the pur, hase OF the
road by competing lines. Persons having con-
troi OF 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 a calculat on
that by GRIPPING a rival forcing an agree
ment or compromise on some matter OF con-
tentfon the loss viii 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 II can see are not remunerative.
In general, therefore, II 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
IL
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 70 be In the direction OF
consolidation as the only means TO prevent
rate wars, now that pooling is forbi zen, and
adds:
what is now technically denomina ID as a trust
could hardly be supposed possible, wen IL the
parties were at liberty TO form II at p. assure. II
the parties could come into harmony oil the sub
Iect an arrangement OF the sort would be so
powerful in its control over the business inter
ests OF the country, and SO susceptible TO uses
for mischievous purposes, that public policy
could not for a moment sanction II, at least un-
less by statute 1t we're 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 "a 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 establ shment and promotion OF re-
lations between the carriers that shall better
subserve the public interest than those which
are now common il must nevertheless, look
forward TO the possibl " of something OF that
nature becoming at some time imperat We I'M
less great Improvement in the existing con
d tons is voluntarily inauguraed.
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.
ter or cit es and injuriously affected dsstrbut
ing points formerly favored in rates. The com
m ssion believes uniformity IN elias ification
as fast as possible without serious mischief is
desirable.
Immigrant transportation is next consid
cred. and the comm ss,On recommends a re-
ceptton place larger than Castle Garden. from
which those not legitimately connected with
INN grant transportation shall be excluded.
on equal footing. Payment of com
m ssions for routing immigrants, and
for procuring the shipment OF immi
grants from foreign countr es. should
be declared Illegal and made punishable. Toe
should have power TO fix immi-
grant fares. These objects can not be fully
accomplished except by the Federal Govern
ment taking complete control of the whole |
subject.
The subject OF the payment of commissions
is treated extensively. The comm be |
lieves that the evils OF the system exceeds its /
&C antIges. The subject is brought 10 the at
tention of Congress.
The subject of overcapitalzation is recog-
nized as an exceedingly important one, but II
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 constructo on ought also /
10 be settled by legislation in order 10 take /
away the pretense on which certain through /
lines are now claimed 70 be local lines in fact /
and through lines only in appearance. The 1
thinks If a line is in fact through /
line by reason OF ownership the corporation |
ought not TO he at liberty TO make /
through rates or to decline % mike them a. /
pleasure. The commission favors joint tariffs 4
and through rates, and recommends that the /
carriers engaged Independently in interstate /
traffic on the rivers lakes and Other navigaDle [
waters of the country be put, i'll respect /
10 the making, publishing and main 1
tanning of rates, upon the same footing with /
Interstate carriers by rail, so that the excuses l
now made by carr ers by rail for great dispar l
ties in rates for corresponding transportations 4
IS between points which are and which are not 4
affected byswater competition would thereby
10 large extent be taken away
WHITE HOUSE PETS.