Sacramento daily record-union., 1888-10-25
OVERLAND FREIGHT RATEs.
An Explanation by Traffic Manager
Stubbs of Interest to shippers.

An Explanation by Traffic Manager
Stubbs of Interest to shippers.
Is. f. Bulletin, October 24th.l
a recent ruling OF the Interstate Com
merce Commissioners, affecting West
bound freight shipments, hes caused con-
siderable comment and criticism, much of
it of a more or less confused nature, for
the technicalities of freight traffic are often
perpleXing to the average citizen. The ef-
feet of the ruling on Pacific coast mer-
chants was at first not clear. Some critics
said the result would be disastrous to trans
continental railroad lines, as consider
able reduction of certain tariffs would en-
sue. Traffic Manager Stubbs of the
Southern Pacific was questioned to-day re-
garding the matter. He replied promptly :
" The ruling is one of the greatest victories
we have ever had. Just let me explain the
matter" After pause he continued:
Tariff No. s is tariff between New
York and other Atlantic seaboard points
and Pacific coast terminals. Tariff No. 10
is tariff between Buffalo, Pittsburg, Chi
cago and all on and east of the Missouri
river and points on the Pacific coast, con-
structed upon the principle that the rates
for longer haul should not be less than
for a shorter intermediate haul. Hence
the rates from Chicago to San Francisco,
under tariff No. 10, were the maximum
rates for intermediate service. Tariffs No.
IL to No. 16, inclusive, were commodity
tariffs-that Is, they gave rates on particu-
lar articles produced or manufactured at
points west of the Atlantic seaboard
in competition with similar articles pro-
duced and manufactured on the Atlantic
seaboard. These rates were the same from
interior points as from New York TO Pacific
Coast terminals. They were not regarded
by all as conforming to the views of the
law held by the Interstate Commissioners.
but were made upon the theory that it
would be as destructive to competition tc
deny the manufacturer of agricultural i'm.
plements in the West the same rate which
ocean competition gave to the manufact-
urer of the same agricultural implements
on the Atlantic seaboard, as it would be to
deny to the overland carriers the right to
compete with the ocean carriers for the
trade between the Atlantic and Pacific
coasts. For this reason they were adopted,
their adoption representing compromise
between the officers of the different roads
entertaining different opinions.
All these tariffs were filed with the
Interstate Commerce Commission. Chi
cago, st. Louis and other large cities COM
plained because under the new plan of
tariffs their rates were higher than New
L Vi Ia. 1HcSS IttltS were DOl Mllhl2lV SO
made by the railroad companies The
railroad companies felt compelled to make
them so under published opinions of the
Interstate Commission. An examination
of the tariff by the Interstate Commerce
Commission, probably aided by complaints
from Chicago and st. Louis, resulted in the
Commissioners asking Messrs. Leeds, of
the Transcontinental Association, and
Midgley, of the Southwestern Association,
to confer with them at Washington. The
result of that conference was an unofficial
declaration by the Interstate Commerce
Commission that Tariffs No. II to No. Is
were illegal, and it also resulted in prac-
teal, though not official, suspension of the
fourth section of the Interstate Commerce
law on business between points east of the
9th meridian and Pacific terminals, thus
permitting the railroad companies to do
what they would have gladly done in the
first place, and what they only neglected
doing through fear of an adverse opinion
on the part of the Commission, namely,
put in rates (as per Tariff No. 81 from all
points east of the 9th meridian to Califor-
mia terminals, which would be no higher
than the rates from New York to Csllfor-
MIA terminals (the latter rates being gov
erned by Cape Horn competition), without
interfering with their Intermediate local
rates"