Huntsville gazette., 1889-08-10
THE ROCK ISLANDS POSITION.
General Manager st. Johns Reply to the
Statement of Alton Officials.
[From the Chicago Times.

lFrom the Chicago TimeeI
General Manager St John, of the Chicago,
Rock Island & Pacific road, authorizes the
following statement in reply to assertions
recently made by Vice-President j. o.
McMullin of the Chicago & Alton in pub
lished interview;
MIR McMullin, in a recent published inter-
view. has clearly defined the present posi-
ton and policy Of the Alton road. 1t is
to insist on through rates being made on
basis that will give to it a fair share of the
traffic which goes to and comes from
points west OF Kansas City. He illus
trates his meaning by citing shipment OF
live stock from Topeka on the Rock Island
road through Kansas City to Chicago.
Upon such shipment the tariffs Of all the
lines as heretofore adjusted provided for
through rate somewhat less than the
sum of two locals This practice was
in accordance with well recognized prin-
ciples of rate making as universally prac-
ticed by carriers and has been approved
by the interstate commerce commission,
which in arecent case used the following
language: AS throughrates are made by the
American system of roads agreed percent
ages of the total rate, considerably less in
amount than the local rates Of roads receiv-
ing such percentages, are usually leading
feature, and it is eminently proper as a
general rule that this should be so. y : =
Commerce and trade require it and compe-
tition compels it. Such rates, when rea-
sonably and fairly adjusted to local bust
ness, are greatly favored in the law, be-
cause they furnish cheapened rates and
greater facilities to the public, while at the
same time they give increased employ
ment and earnings to larger number OF
carriers.
In the rates as adjusted heretofore
upon livestock traffic from points in Kan
sas Indian Territory, Texas, etc, through
Kansas City to Chicago, the difference be-
tween the sums of the locals and the
through rates was an entirely reasonable
difference and the tariffs in question were
precisely upon the line of the resolution
which Mr.. McMullin quotes approvingly.
Notwithstanding this he says that he pro-
poses to get what he calls fair share of
the tariff by reducing the local rate from
Kansas City to Chicago to the amount OF
the proportionate rate between these
points charged by the Rock Island on the
through shipment
This statement is certainly candid His
line has no extension west of Kansas City.
The Rock Island has. He proposes to make
the latter divide with him traffic which
originates upon the extension that 1t has
furnished means to construct and this he
will do by reducing the established rate
from Kansas City to Chicago. This declara-
tion follows his announcement at the COM
mencement of the same interview that the
Alton does not cut any rates; it only reduces
when necessary to meet cut rates of other
roads Yet the Alton has just forced a
large reduction in all rates on live stock and
products from Kansas City to Chicago in ac-
cordance with the policy above stated
Naturally and vtably when the Alton
reduces its rate from Kansas City to the
division of the through rate charged upon
the lines where the livestock shipments
originate those lines must meet the reduc-
tion in the local and at the same time re-
duce their through rate correspondingly.
This is necessary for their preservation;
they will not think that they can reasona-
bly, be asked to cut their lines in two for
the benefit of the Alton, nor can the latter
justly expect them to surrender traffic
which they have constructed long lines of
road to secure. This step will apparently
involve q new reduction by the Alton to
the level of the new proportionate rates.
and the process will be repeated until all
the lines are doing business at loss and
somebody surrenders
The association has no desire to punish
the Alton for its withdrawal nor for any
thing else. Action necessary for the pro
lection of its lines against the Atoms raid
will probably be taken. however"