The San Francisco call., 1896-04-01
FREIGHT FROM ABROAD.

The Supreme Court of the United States
has rendered an important decision in rul-
ing that the Interstate Commerce Commits
sion shall not require railroads to charge
equal rates on fIeights imported into this
country for interior forwarding and
freights originating at the points of i'm
portation. Thus it is ruled that the Texas
and Pacific Railroad may charge less for
i'm ported freight goods laid down in New
Orleans for shipment to Western terminals
than for American goods sent by rail from
New Orleans to the same destinations. AS
or course the ruling is general in its appli-
cation all the railroads of the country may
If they choose discriminate against Ameri-
can goods and in favor of foreign articles.
The circumstances under which they are
likely to take advantage of this decision
are those growing out of the water COM
petition. For instance, articles produced
in Europe might be sent across the At
lantic and round Cape Horn to California
by sailing vessels. 1t would be to the in
terest of the transcontinental railroads to
offer such inducements in the way of low
rates as would secure them the freight,
but this could not be done unless lower
rates are charged than would be profitable
in the handling of American products.
This is particularly the case with regard to
freights between New Orleans and San
Francisco by reason of the longer water
distance separating the two places. That
is to say, transportation charges within
certain limits have quite as important an
effect on American industries as an i'm
port tariff could have. This presents a
novel and serious condition OF affairs, and
discloses a railroad power that was never
foreseen.
How Congress should deal with this
new problem is matter for serious con-
sideration. 1t is not desirable that rail
roads, honestly managed and carrying
debts fairly contracted, should be unduly
hampered IN the conduct of their busi-
ness, but their interests are not the only
concern of the people. 1t is not trifling
consideration that to a certs in extent rail-
roads have the power to nullify the good
effect of protective tariff. The Repub-
lican party, which has faithfully adhered
to its policy of protecting American indus
tries, is compelled by this decision to
realize that factor wholly independent OF
tariff has injected itself into the question
l..
Such highway as the Nicaragua canal,
which would greatly reduce the time and
cost OF transportation as compared with
the Cape Horn route, would apparently
compel the railroads to abandon all at
tempts to compete for the trade OF Europe
over the area affected by the canal. That
highway would accomplish the additional
benefit of regulating railroad charges be-
tween Atlantic and Pacific ports, and as
this regulation would be in the hands of
the United States Government, it could be
managed with that wisdom which would
strike an even balance between the inter
ests OF the transportation companies and
those OF the people without working in
jury to either. This would completely re
move the constant danger of such com
binations among transportation compa-
nies as have no regard for the progress of
the country.