The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1895-02-21
RATE MAKING.
IT IS A DIFFICULT THING TO DO.
The Mileage Basis Believed to Be the
Correct One, But it Will Not Salts
factorily Work Under All
Circumstances.

The railroad commission, in their re-
port, speaking of making freights, say
Rates fixed by the commission are d-
vided into two classes; first, rates fixed
by the commission on its own motion
after due notice; second, rates made on
application of railroad companies. AS Il
rule, rates made on application of a rail
road company are limited in their appli-
cation to one line of road, and are not
general. They are for the most part in
tended to move articles that cannot be
shipped NJ existing rates of charges
Tariffs fixed by the commission after Il
hearing of all parties at interest, as a
rule, apply on all roads in Texas, with
such exceptions and notifications as
varying circumstances and conditions
appear 10 justify. In some cases, in fixing
uniform mileage tariffs, rates have been
raised a few cents at some points along
the lines of the various railroads in the
state. In the next tariff prescribed on an
other commodity by the commission,
rates would probably be lowered at those
same points, so that in the end uniform
ity has been reached on all tariffs of gen.
eral application on roads where Substan-
TALLY the same conditions obtain.
The commission, when it was first or
ganized, adopted the mileage basis of
making rates. Speaking of the subject
then, the commission used the following
language in the report of 1892:
This, in the opinion of the commits
sion, is the only equitable and just prin-
ciple on which freight charges can be
based; and while, owing to conditions for
which the commission is in no way re-
sponsible, it has not in all cases been
adopted, it has been applied in every in
stance where the commission could ap-
ply it without a too violent disturbance
of business and trade relations built up
under different conditions"
This we still believe to be the proper
basis for rate making where it can be ap-
piled, but there are so many circum-
stances affecting traffic necessitating mod
itications or changes in mileage rates, that
the theory is in many cases destroyed in
practice. So varying are conditions sur
rounding roads in different parts of the
state, and so diverse are the circumstan-
ces affecting traffic that no iron-bound
rule of action can be prescribed in the
making of freight tariffs. The multi
farious circumstances and conditions af-
fecting each case must be considered
and rate prescribed upon what appears
to be the most practical basis. The franz
ers of the commission law therefore very
wisely clothed the commission with power
to make different rates for different
railroads." or for different parts of the
same railroad" This power the commits
sion has found it necessary to exercise
frequently, both as a matter of justice
to the railroad companies and the people
who patronize them.
Competitive conditions of trade render
absolute uniformity of tariffs imprac-
produced throughout the state, and on
which mileage tariff could otherwise be
fairly applied. Absolute and unyieldinc
adherence to mileage tariffs would de-
prive some roads of participating in the
tariff at competitive points, and give
others n monopoly of the carrying trade.
to both the disadvantage of the railroad
SO deprived of business and the detriment
Of the public interests.
Cotton furnishes a good illustration of
this idea. 1t is generally raised through
out the settled portion of the state and
finds a market beyond our borders. 1t
would appear at first glance practicable
to fix q uniform mileage tariff on cotton
without any exceptions or notifications,
which would be equitable and Just to ali
interests alike, but such tariff, if rigidly
adhered to, would revolutionize the com
mercial map of Texas so far as the cotton
trade is concerned. 1t would carry with
it injury and destruction to the cotton
trade of individuals, towns, cities, and in
some cases railroads, and corresponding
injury to the producers of cotton whose
interests are best subserved by presery
ing competition between the railroads of
the cities and towns for the cotton trade,
and between railroads of the state in its
transportation to market. Hence the
reason for the notifications and excep,
tons incorporated in the present cotton
tariff adopted by the commission.
The reduction on an average effected
in the charge for transporting 100 pounds
of cotton to tide water by the commission
tariff is 5 cents, or % cents per bale of
800 pounds. The maximum rate in force
previously was 70 cents per 100 pounds.
but under the commission tariff it is made
60 cents per 100 pounds.
The rules and regulations adopted by
the commission governing the compression
of cotton and the differential rate fixed
between Houston and Calves
ton formed the basis of
complaints which were formally nrn-
sented and determined by the commission.