Evening star., 1897-03-31
FREIGHT COMBINES
The Anti-Pool Decision Effects Bill
ions of Values.
RAILROAD MEN ARE APPREHENSIVE
They Declare That There Must Be
Fixed Rates.
W II AT MAY Fl A P P E n

The decision Of the Supreme Court of
the United States by which the Trans
Missouri Freight Association was de-
cIared TO be an Illegal body has had the
effect IL is stated in railroad and banking
circles of upsetting values In almost every
department of the transportation and stock
business.
Speaking of the matter to Star reporter.
n prominent official of one of the leading
railroads centering in Washington said:
1T is impossible for a blow of that kind
to be struck at any one industry without
being communicated instantaneously, with
perhaps some loss of force. to other indus
tries. Whatever the future may have in
store. IT is at least comforting to think
that the trouble which has been the latest
TO develop Is very easily durable. 1t Is
comforting to think that while railroad
troubles, should they become serious will
undoubtedly have a depressing effect to
some extent upon the general business of
the country, other influences are at work
which are favorable In character and are
more than strong enough to prevent
complete destruction of the recovery that
is now In progress"
Values Affected.
The decision has also had the effect of
to the general public than ever before, for
fl is generally believed by most of those
interested that n decision similar to that
above quoted will be rendered by the same
tribunal against the Joint Traffic Asso-
oiation in a case pending before 1t.
and in the latter organization are COM
priSed all the important railroads north
of the Ohio and east of the Mississippi
rivers
According to high authority. there are
a this time in the United States more than
1SIt-D miles of railroad tracks. This is
one-half Of the entire mileage of the world.
The capital stock of these railroads Is
nearly S5po0UO.co0. and with the funded
debt. unfunded debt and floating debt,
nealy sl2.9D.0I.sO.
To operate these roads force of more
than l,IC.Uo men are required. and upon
these are dependent, 1t is estimated, be-
tween 40oo,ovO and 5.0oo.Ooo people. The
pay they receive ranges from a few hun
dre'lS of dollars annually into the scores of
thousands There are also in the service
more than 35,tsD locomotives and nearly
1.HsttsD cars. The total assets of these
railroads. consisting Of roads and equip
mcEt. real estate. stocks. bonds. etc, other
assets and current accounts. amounted to
nearly S13,U0.OGO COO During last year
there were carried by the railroads of the
United States nearly 100000 of passen-
gers over about 13,uo,91.on miles of coun-
trN- and nearly Sn.tsD.tsD tons of freight
were moved The total traffic revenue was
about 81. i.h0,GS06o
There are at this time about two hundred
railroads In the hands of receivers and of
these all but ten were obliged TO apply to
the courts for relief from importunate
creditors during the last five years The
others had 10 take the same recourse prior
10 that period.
Loss of Earnings.
According 10 an excellent authority the
gross earnings of the railroads of the
-gf S-..-a r.Nr
thirteen years from s7.I61 per mile to s6 1O1
and the net earnings from so7tp to 81 .sO4
per mile With a growth in the railroad
system OF the country during the same ne
ri0d rom about 107 GpD to ls0UD miles or
man track. this decrease in earnings will
account in a great degree for the receiver
ships' the loss In dividends and other ad-
verse complications which have beset rail-
roads during the past few years
IN the same period of time the price of
passenger transportation according to this
lltAoTityD has fallen - per cent and the
price OF freight transportation 81 per cent
Had the rates which obtained thirteen
years ago for passenger and freight trans
portation been continued up to the present
uine. the incomes of the railroads of the
.ouAry would amount approximately to
st"|"""b more than they do annually at
lh+ present time. Nor have the railroads
suffered loss alone from reduction in the
rates Of transportation. for during the
same period of time. thirteen years the.
AtAN from WEiCh tranSDOrta Ion
stock Is manufactured composed of % per
cent labor and ~ per cent equipment has
not declined IN price
Up TO the present time railroad men
nave considered the outlook for the future
hopeful, TO say the least. They have seen
ahead great growing increase in business,
WhiC means a share in traffic receipts for
the railroads They have seen a better and
more perfect physical system completed,
and have hoped that agreements regarding
the rates 10 be charged for the transporta-
tlon OF both freight and passengers would
be such that the business would move
along smoothly and harmoniously
Adverse legislation not feared to
any great extent 1t was argued by them
that the best interests Of the country would
be conserved by permitting railroads to do
business in way TO facilitate their own
affairs. and the transportation of merchan-
disc II was to this end that the various
traffic associations We're organized. and not
as some persons have supposed for the pur-
pose of putting rates up to a higher figure
than would be obtained when competition
was unrestricted. As a matter of fact
these agreements have met with the ap-
proval of large shippers of grain and
merchandise in every section of the coun-
try. whatever the complaints of the great
body of smaller shippers may be.
By the establishment of fixed rates
these shippers were enabled TO know In ad-
vance just what IL would cost them TO ship
their goods. merchandise grain from
point 10 point within a certain date With
no established rates 10 go by they would
be In doubt from day to day as 10 the cost
OF transportation of such articles of com
nerce as they traded in.
Interstate Regulation.
Opinions of various prominent railro1d
men. expressed since the decision of the
Supreme Court. are almost unanimous or
one point. and that is that the roads mus
have some agreement In regard 10 rates fol
freight carrying. that a war of rates vii
not only prove disastrous to railroads
large and small. but to shippers, who vii
b. unable to plan for shipments five day.
ahead.
The plan generally favored Is for Con
gress TO give authority to the interstat,
commerce commission TO have supervision
over railroads, allowing them to max,
agreements for the division of traffic an,
:he mainter ance of rates. In the event o
complaints being made that the freigh
charges are excessive. the interstate com
merce commission shall, IL is proposed
have power 10 decide on the merits of til
case, the decision 10 stand as a fnalit,
UntI reviewed by a higher court; in othe
words. the railroads want what every larg
enterprise. commercial or manufacturin
entitled to under the law-protection The
want protection against rash policy. agains