The herald., 1897-03-29
TRAFFIC RATES
AS Affected by a Recent
Decision
OF THE SUPREME COURT
DISCUSSED BY A PROMINENT
RAILROAD MAN
John A. Gill, of the Vanderbilt Sys-
tenn, Expresses His Opinion.
No Change in Rates

Realizing that the recent decision of
| the United States supreme court regard
| ing the illegality of railroad organiza-
| tions for the purpose of main tanning
agreed rates is a subject of vital inter-
| est to all railroad men, and the general
public as we'll, The Herald attempted to
| get an expression from some of the local
railroad officials yesterday as to their
| views in the matter.
| Among those seen was John A. Gill,
Pacific coast freight agent for the Van
| derbilt system of railroads. The genial
railroad man was found in his usual
good humor at the Hollenbeck last
night and kindly consented to an inter-
view.
What do you think of the recent de-
| cision of the supreme court concerning
the formation of traffic associations,
which holds that they are in violation Of
| what is called the Sherman antitrust
law?" was asked.
We'll" he replied, "if the decision is
sustained by the supreme court 1t will
| certainly work against the interests Of
al! concerned, more particularly our
| American industries. For instance, let
us consider the interstate commerce law
| which was made to regulate traffic in the
| United States. 1t contains some points
that are very much against the interests
of American railways in so far that for
eign lines, such as the Canadian Pacific,
| can handle traffic from ocean to ocean
without being subject to this law. M
| requirements or restrictions are placed
uron it's operations, while on the other
| hand American lines must confer with
each other whenever 1t becomes neces-
sary to make rates on transcontinental
traffic.
"All lines interested have a voice In
making rates, and all accept usual per-
centages, based generally on mileage.
All rates are open for public inspection
and the organization of traffic associa-
tions is the only means of harmonious
cooperation, or, / might say, proper
system of complying with the interstate
commerce law.
81 fail to see how there can be any vio-
lation of law for transportation com
panies to agree on certain rates whicn
may be necessary to move various kinds
of traffic and to equalize the tonnage by
which any conflict is avoided and &
repetition of the cutting and slashing o.
rates which have often happened In th-
past prevented.
"As 1 understand it, their records are
open to inspection, and their organiza-
q | II,
must have head. Thus all lines inter
ested can through their executive. e. 2tn
| est.
Il doubt, however, that rates will b,
disturbed by the recent decision. Th,
withdrawal of lines from the various as
sociations is not surprising, and only
shows their good intention in comply.
ing with the law as construed by the su-
preme court. feel sure that when the
| cnhiaaf has haap r,r0narlxr der
will come out all right, and reorganiza-
ton will then be in order. 1t is the only
proper system Of dealing with the inter
ests at stake.
$50 far as rates are concerned, they
are certainly very low, and, in fact, on a
great many commodities are not suf-
ficient to pay the actual cost of trans
portation, but the railroad lines are
willing to make this concession in or
der to move the traffic where a market
can be found
Take the rate on oranges for in
stance. From Los Angeles to Portland
Me-. distance of $500 miles, 81. 25 per 10l
pounds is charged for transportation
This means gross earning of only two
thirds of cent per ton per mile. Such
rates are made in order to move tho
traffic, and the same thing Is true
| of many other commodities upon which
the rate is even much less.
"As it is American railways under
stand the requirements of the associa-
ton by which all industries are we'll
| protected. All concerned are treated
alike, and no advantages or favors are
shown to any one, thus enabling the
shipper of one carload of goods to re-
ceive the same rates as the shipper of
hundred cars.
"The association prevents discrimi-
nation in favor of certain lines. They
publish their tariff rates and are always
ready to consider an application for a
reduction where such an application is
justified.
This matter of traffic is indeed a
very important factor to our Industries,
and think that there are very few in
| stances where rates are excessive
Il have never considered that the
Sherman antitrust law had any bear
irg on legitimate traffic organizations
which are always open to public in
spection."