Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1890-06-23

reported.
TIE INTERSTATE COLlIISSION ON
FREIGHT RATES.
On the 10th of February last, the SEN
ate adopted q resolution directing the in
terstate commerce commission to max
investigation and report as soon as prac-
tIcable whether or not the agricultural
depression at that time existing, was
due to unreasonable freight rates. The
commi ssion g report was transmitted to
the senate June Z, copy of which is now
before US. There are some thirty-five
pages of it devoted to a discussion of
the rates on the various lines connect
ing the East and West, but careful
reading OF them does not disclose any
thing very satisfactory as to the main
object, to-wit: The ascertainment OF
reasonable freight rate in relation to the
cost of production, and the ef-
feet of the former on the late
ter. The main problem before the
commission was to ascertain a "rea-
sonable rate of transportation. - So
many questions, conditions and circum-
stances enter into a consideration of this
matter, they find it next to impossible to
do more than to approximate.
The report states that "through ship
ments of food products are made to east
ern ports from Chicago and Mississippi
river points, and not from points fur
Their west.
From western points, rates are made
no further east than Chicago, and the
Mississi ppi, east side.
The rate on corn from Chicago and
E asst st. Louis to the Eastern market is
20 cents per 100 pounds, on -four, wheat
and other grain, 25 cents.
From Missouri river points to Chicago,
the rate on corn is 20 cents, and on
wheat and -four 2215. To east side of
Mississippi river, 10 and 90 cents re-
spectiyely.
It will thus be seen that the Kansas or
Nebraska farmer pays almost as much
for hauling his wheat and corn distance
of 400 to GOO miles TO the Mississippi
river as he pays for donble the distance
from East st. Louis or Chicago to New
York.
In passing upon these rates the COM
mission decided that the rates from Chi
cago and the Mississippi river to Eastern
points were not unreasonable, but that
rates from Western points to the Missis-
sippi river were and ought to be reduced
two to three cents.
The rates of forty-six cents on corn
and wheat aud f1fty-one cents on Hour
from Kansas points to points in Texas
were declared to be "unreasonably high
for the longer distances and grossly ex-
cessive and exorbitant for the shorter.''
1t is admitted by the commission that
the price obtained for food products
by the Western farmer have not, gen.
orally speaking, equaled the cost of pro-
ductlon, but cannot assent to the propo-
sition that excessive freight rates are en-
tirely to blame for it, or that to be
reasonable, rates of transportation
should be fixed at such q figure as will
enable the agriculturist to obtain price
equal to the cost of production. The
sion as an admitted fact that rates are
reasonable that enable railroad to
pay operating expenses. fixed charges
and some dividend to the investors.
How to ascertain on this basis, when a
rate is reasonable is far less difficult
in the case of single road than of two
or more competing lines with different
capitalizations and unequaled bonded
indebtedness The case is cited
of the Chicago and Alton, and the
Santa Fe, parallel lines be-
tween Kansas City and Chicago. The
Alton is capitalized at SAC 900 mile and
the Santa Fe at twice that sum or S92,-
900. Must the rate 5e such as to yield
an income on the basis of the Atoms
Other similar CAGES are instanced to
show how difficult 1t is to say when traffic |
rate Is or is not reasonable.
While the corn crop of 1889 was esti-
mated at Pip. 200 ,OoO bushels, the |
largest we eyer had. the commission find |
that Gin past years corn was higher in |
price when railroad charges were |
greater, and as well in years when the |
crop was greater than now in proportion
to population. as when it was |