Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-02-16
SPECIAL RAIL RATES.
A Vicious System That Leads to
Violations of the Law,
WHERE THEY WORK INJUSTICE.
Facts About the Special Iron Tariff East
Of the Mississippi.
A STUDY OF THE GOVERNING SCALE
WRITTEN FOR THE prspArcH.1

WRITTEN FOR THE DIsPArcHI
The officials of the railways east of the
Mississippi river and north Of the Newport
News and Mississippi Valley system have
shown more of disposition to comply with
the law than those of any other part of the
United States. Yet even here we often find
the spirit of the law violated. This is most
frequently done by the vicious system of
special rates. Formerly it was the custom
to make special rates for individuals or
firms. This has been superseded by the Gus
tom of making special rates on commodities
and for localities. 1t is proper that freight
should be classified and charged according 10
its comparative bulk, weight and value.
Thus drygoods are classed higher than nails,
and whisky higher than kerosene. Dry
goods are usually packed in shape conven-
lent to handle, and their weight proportion
ate to bulk is such as to make what is called
good freight; but their value is much greater
per pound than nails. and they are liable to
damage by wet, collision, fire and stealage,
while nails are scarcely liable to damage at
all, hence the carrier is justified in charging
less for carrying nails than for carrying dry
goods. These qualities in freight are all
taken into consideration in classifying.
But it is too often the case that special
rates are made on certain commodities much
lower than the regular rate applicable to
the class to which they belong, the other
commodities of the same class being
charged at the regular rate. This is dis
elimination.
A FLAGRANT CASE
ofthis discrimination is the Especial iron tar
Al l. ~.
territory. What is known as the official clas-
sifcation" governs in this territory. In it
bar iron, steel, nails, spikes, bolts, nuts and
kindred articles are rated as fifth class. Pig
iron, brick, lumber and a few other articles
as sixth class. Sometime ago the officials Of
the leading roads out of Pittsburg were con-
vinced that the iron rates were too high.
This was true; but il was also true that the
scale was too high. Ny meaning can be
better explained by giving instances. The
present scale of rates, Pittsburg to Chicago
is first class, 421h5c, second 371Ie, third IKE,
fourth Zoe, fifth 1715c, sixth 15c per 100
lbs, governed by official classification; thus
bar iron. steel nails, etc. were zoe per hum
dred pounds in small lots, and 171Sc in car
loads. Pig iron, brick, etc., 15c in carloads.
The tact that the rates on iron were too high
proved that the fifth and sixth classes were
too high. They should have been reduced.
Instead of that special tariff was made on
iron and steel articles, placing them in fifth
class small lots, and sixth class carloads,
but leaving other articles where they were.
This was unjust 1t iron is entitled to o
rate of 10 cents per hundred pounds in car
loads from Pittsburg to Chicago, there are
other articles (those classed regularly as
sixth class) which are entitled to lower
rate, and it is discrimination against the
shippers of those commodities not to place
them relatively where they belong.
ABOUT GOVERNING RATES.
Rates between New York and Chicago are
what may be termed governing rates. that
is to say, all other rates are based on them.
Thus the rates from Pittsburg to Chicago
are based on a certain percentage of the
scale from New York to Chicago and rates
from Pittsburg to Cincinnati, Louisville,
East st. Louis, Peoria, etc., are based on q
certain percentage above or below the scale,
Pittsburg to Chicago. Hence, the latter
scale is fair one to use as an illustration,
A study of this scale will expose a clever
method of discriminating against this terri
tory, without antagonizing the interstate
commerce law. BY referring to the figures
given above, it will be seen that the six
classes, Pittsburg to Chicago, are respect
lively, 4211, 37113, 2711, 20, 171z and Is cents
per 100 pounds. The distance is 468 miles.
A freight man will tell you that for the dis
tance the first three classes are too low, and
the last two classes too high. A proper
proportioned scale makes first class about
four times sixth class.
Why then are these figures used? Here
is the whole secret; New York ships west
large quantities of high class freight and
comparatively small quantities of low class.
This territory ships west large quantities Of
low class freight and comparatively little
high class. Hence the basing scale Of rates,
New York to Chicago, is made to favor New
York shippers, the higher classes of the
scale cut down, the lower classes held up.
Thus the territory producing large tonnage
of low class freight pays more than its pro-
portion toward the support of the railroads
in order that the territory shipping large
quantities of high class freight may pay
less than its proportion. I give below the
present scale of rates, Pittsburg to Chicago,
with what the writer thinks
would be proper one:
Present scale .421< 37< Z7k 20 17H Is
A proper scale. 80 40 30 20 l5 II
The interstate commerce law would be
improved by provision compelling railway
to classify all freight, to publish
rates in scales OF classes only and when they
changed the rate on a commodity to change
The class or the scale. This would prevent
special rates and be great saving of labor
and expense to the railways themselves az
we'll as justice 10 the patrons. Special rates
ire a species of special legislation and
special legislation is always unjust.