Evening star. [volume] (Washington, D.C.) 1854-1972, 1890-12-27
TALKING OF RAILROAD RATES.
The Topic Discussed by the Economists To.
siay.

| PAPER PRESENTED BY PROF. rASss-s-THr
ANNUAL REPORT OF THE sEcRErARy-PRIzEs
AWARDED FOR EssAYs-THE GROWTH OF THE
MEMBERSHIP OF THE ASSOCIATION.
Railroad topics occupied the attention Of the
members Of the American Economic Associa-
ton at the session which was opened this
morning n 10 O'Clock. The time had been as
signed to toe committee on transportation. OF
which Prof. Edmund ]. James is chairman. and
several papers were read on various phases OF
railroad management and expenditure. Prof
Walker. the president. occupied the chair and
directed the proceedings with promptzess.
Thirty minutes were allowed to each
paper and in the discussion which as
a rule followed the reading of a parer the
speakers were limited 10 five minutes each The
audience was an attentive one. If not large in
numbers, and 1t mast have been gratifying TO
! those VINO took part 70 see the evident interest
with which the views advanced we're received
Some took notes in order to preser We for future
reference the valuable suggestions which the
extempOre discussion brought out from the
experts present. A noticeable feature of this
gathering of scientists is the fact
that such large proportion are
comparatively young men, and when the nota-
bic careers in many instances are taken into
consideration the association may lay claim
very properly to the attractive quality of draw
ing TO 1t large number of the bright young
present and seemed to be interested in the pa
pers and in the discussions, which to a large
extent were technical in character.
SECRETARY ELYs REPORT.
Before the reading of the paper was begun
the secretary, Prof. Richard T. Ely of Balti-
more. read his annual report. He stated that
the association had continued to grow and had
never before been in such q prosperous con-
dition. He quoted statistics to show the growth
of membership. In 1886 the number of mem
bers on the list was 1872: at the
present time the members and subscribers
numbered 635. The report stated that an ex-
animation of the lists would show that the
quality of the membership was of high order
1t is safe TO say. he thought, that the associa-
ton is at the present time known by econo-
nilsts in all countries and is recognized AZ the
scientific economic Association of the United
States.
FRIES FOR ESSAYS.
He stated that the prize for the best essay on
immigration had been awarded to Mr.. Richard
ID. Lang of Baltimore. Since the Philadelphia
meeting a prize of 800. established by Mrs.
John A. Chanlor (Amelie Rives), has been di-
vided between Hiss Clare de Graffenried and
Mr.. VIZ .Wiiloushby for the best essay on ''Chi.d
Labor" 4 prize of $500 for the first best essay
upon women Wage Banners ana 300 for the
second best has been offered and the judges have
the ESSAYS now under consideration. Essays
have also been submitted for prize of $3.50 for
the best essay on the taxation of personal prop
erty in the United States. Recently 300 and
500 have been offered for ESSAYS on the hous-
Ing of the poor in American cities. Compe-
ti.ion is open to all.
The report recommended the continuation
of the policy of offering prizes for essays.
THE TEEAsURERS REPORT.
The treasurer's report submitted. by Edwin
r. A. Seligman of New York. the treasurer,
showed a larger cash balance than in previous
reports and an increase in the assets.
TIE THEORY OF RAILROAD RATES.
The first paper read was by Prof. F. W.
Taussig, whose subject was "A Contribution to
the Theory of Railroad Rates.
He discussed the theory of railway rates and
more especially the explanation of the practice
OF charging what the traffic will bear" Prof.
Taussig concluded that the key to the situation
railways expenses are joint-that is, are
incurred. not each expense separately
for every bit of traffic, but jointly
FOR the traffic as whole. Every
batch OF freight. of course. must pay at least
as much as the separate expenses which are in
CURED in handling and transporting it alone
but these separate expenses are small in COM
parisOn with the other expenses. like fixed
charges. maintenance of way, signaling ex-
penses, which serve for the whole of the traffic.
How much of these joint expenses will be got
back from the rates on any particular traffic
must depend on how great charge that traffic
will bear; that is. on the character Of the de-
mand for its transportation. The apparent and
real determinations in railway rates the classi.
fication of freight higher charges on shorter
hauls, special rates, Communication rates. party
rates-al1 these were not the result of railway
monopoly or of arbitrary discrimination by
railway managers, but arose naturally and
almost inevitably from the peculiar conditions
under which railway transportation was car
ried on. The practice of charging what the
traffic bears would appear. and indeed has ap-
Peared. under government ownership
well "a under private o.nership. Moreover. it
probably serves in the main and in the long run
to bring about that in which the public is most
interested-the most effective utilization of
railway capital for the benefit of the COM
munity. The paper also contained some criti-
cism of other theories in regard to railway
rates and discussion of their proper place in
the general economic theory of value and
price.
Upon the conclusion of the reading of this
paper there was an interesting discussion. Hon.
Geo. II. Elv OF Cleveland and Prof. Edmund j.
james of Philadelphia. who were to read papers
at this session. have not yet arrived in the city
As there were no other papers on the program
TO be read the convention adjourned shortly
after II o'clock. At the session this evening
the committee on statistics, Hon. Carroll d.
Wright, Chairman, will have the floor.