Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-08-16

By the consumers in the towns which she
supplied, or the loss was made up by the
customers of the railroads generally, and in
particular by those at competitive lnterme-
date stations.
If you concede the principle that Dallas
has the right to have the rates so arranged
that she can sell Western products and
Western manufactures in Abilene, instead
of having them go direct from the manu-
facturer or the place where they are pro-
duced to Abilene, as they now do, upon the
same principle Fort Worth could ask that
rates be so arranged that she could buy
merchandise in Dallas and reship to Abb
lene at a profit; Weatherford could claim
the same right; that is, that she be given
rates which would enable her to buy her
merchandise at Fort Worth and resell at a
profit in Abilene; and Cisco could claim the
same right to buy at Weatnerford and sell
at a profit in Abilene. and if the freight
rates were built up on such basis, the cost
10 the Abilene man would be so increased
that he would only be, financially,
ABLE TO EAT ONCE DAY.
II has been urged that the Abilene man
would be benefited by having market near
by from which TO secure his supplies.
The only difference, as it now stands, is
that he is required to send in his orders a
few days earlier than if he purchased at
Dallas We think the Abilene man, and
not the Dallas man, is the best Judge of
whether such benefit would Offset the dis
advantages that we have pointed out. If
Dallas has any raw material near by which
she can manufacture more cheaply than St.
Louis or some other point, viz, where the
additional cost OF manufacture in Dial
las is not greater than the additional
cost of railway haul from St.
Louis over points from where the
Dallas raw material is hauled, Dallas
would clearly be entitled to such rates as
would enable her to manufacture such gaw
material and sell the results. Is it shown
that she does not enjoy such rates. It was
stated before the commission that the Dial
las rate on pig iron from Eastern Texas
was 1915 cents; the rates on most articles
manufactured from iron from St. Louis to
Texas common points are 90, carloads, and
102, less than carloads. Rates from Dallas
to Texas common points on such articles
are 40 and e., to which add 12l% cents, and
the result is giving Dallas the advantage in
rates over St. Louis of 2315 and 49,, re
CARELESS of the rate St. Louis has to pay to
get The iron III, which increases the adj
vantage OF Dallas. 1t is true that the
Texas iron Is given very low rate 10 st.
Louis, otherwise they could not ship it, and
the iron industries of Texas would be re
pressed and the railroads would lose the
small proit which they now make out of
the iron. Would it be good policy, or does
Dallas expect by the fixing of high rates
20 keep all Of the iron in the state or repreSS
its production until such time as Dallas can
manufacture all of the output,
As another illustration OF the principle
of rate making, suppose that in I short time
Dallas became an important manufacturer
of all articles made from iron, and is in a
situation, on the basis of the present rates,
to undcrSell St Louis to Texas common
points. Is it supposed that the rates from
St. Louis TO Texas common points will re-
main as they now are! Naturally some Of
the roads reaching the borders of Texas.
such as the Iron Mountain, will reduce the
rates from St. Louis so as 70 allow the ST.
Louis man TO continue to sell in competition
with Dallas. The Iron Mountain would not
make as much profit out Of the traffic rs
now, but if it made any at all, however
slight, it would be better than TO give il up
altogether. 1t would relieve its treasury TO
that extent, and to that extent would re-
lieve the burden of its support from the
people of Missouri and Arkansas, who
would otherwise
HAVE To STAND THE loss.
While many of them, without ever looking
to the principle, would probably complain
that the Iron Mountain was hauling to Tex
arkana for less than to intermediate points,
while in fact, instead of being an injury, 1t
would be positive benefit to such inferno
date points, as otherwise their rates would
necessarily be higher to compensate for
the entire loss of revenue on the Texas
business. St. Louis and Dallas would di-
vide the Texas business, and Texas would
enjoy the benefit of competition from com
petitive points Of supply, for competition
not only effects price, but quality, the price
being only one among the many benefits
which would result. and the burden of
transportation would be equitably distrib-
Uted.
We have selected the case of Dallas
merely as an illustration OF the principle,
and because it was the one last before the
commission. We have discussed it regard
less Of the question whether Abilene should
be in common point territory; that IS a
matter in which we are not interested, as
Stunning that the Abilene people can take
care of themselves.
If the commission were fixing both state
and interstate rates, il might be that Dallas
would be entitled to have q rate into Dallas
and out to Abilene, which would be equal
to the present rate to Abilene, with the adj
ditional cost of handling the freight in and
out of Dallas, and she could do business if
she could overcome that difference against
her, which, with trade moving in its leTiti-
mate channel, she could not.
1t may be said that Texas should build up
her interior points, if necessary, by protec-
tive freight rates. The constitution of the
United States gives TO congress the power
provides that no state, without the consent
Of congress, will lay any imposts or duties
on imports or exports, or any duty of ton
mage, and that citizens of each state shall
be entitled to all privileges and immunitieS
of citizens in the several states. IS it not
intended by these provisions to make US
one country Under the COM
lnerce clause, the supreme of the United
States have uniformly held that one state
can not enforce any legislation or measures
restrictive of the commerce of other states
Of course, with the exception of
QUARANTINE AND INSPECTION LAWS.
In view of these provisions of the Federal
constitution and the rulings of the supreme
court under the commerce clause, can the
state, by protective freight rates, protect
the commerce of its cities against the trade
of cities in neighboring states9
You will observe that the qualification OF
the general principle is limited to cases
where the points of supply are on the same
route.
In this connection the word "route" is
not restricted to a road owned by one cor
nOration or under one management. 1t may
include number of roads forming a route
whose interests in the question are the
same.
The reason of the qualification is ex-
planned elsewhere. That is. if the points
Of supply are on different routes. the route
having the place to which the cost of serv-
ice is higher can afford TO make any rate
above the cost of service rather than lose
the business entirely, and hence, if such
minimum Goes not preclude il. it will meet
the rate OF the other route, and the other
route, rather than get all the business by
reducing its rate to such point as will in