The San Francisco call., 1897-03-30
Rail- ROAD RATES
THE GREAT ISSUE
Forced Upon Carriers by
the Recent Court
Decision.
A Novel Suggestion Discussed
by Traffic Manager
I Stubs.
WithdraWi ii of the Southern Pacific
From the L cal Passenger
Association.

1t is generally conceded by railroad
men that the recent decision OF the Su-
preme Court will compel the dissolution
of all railroad organizations having for
their object the maintenance of rates or
the apportionment of traffic. They fur
ther recognize that no relief from the stu
alton can be found under the law as in
terpreted by the highest tribunal in the
country. Some, however, hope that re-
hearing OF the matter may be secured, and
that on more comprehensive showing
and argument the decision of the court
may be so modified as TO permit of the
maintenance OF associations which will
provide for the fixing of joint rates and
thus prevent complete decentralization OF
the railroad business by runious rate
war.
The latest suggestion to overcome the
anticipated evils of the decision is to give
the Interstate Commerce Commission the
power to make Interstate rates throughout
the United States. In this way it is hoped
to maintain that stability OF reasonable
rates, which is said TO be as advantageous
TO the public at large as to the railroads.
Traffic Manager J. C. Stubbs of the
Southern Pacific Company, who is ac-
bnowledged TO be one OF the shrewdest
and ablest men In his line in the United
States, sees little relief from such an ar
rangemeIt. He expressed his views on
the subject yesterday as follows:
l should say that such method OF fixing
rates would be utterly impractirable. 1t
would be impossible for board of seven
railroad commissioners, sitting in Washing
ton, TO fix rates all over the United States.
No state board has ever been able TO fix rates.
No railroad company has ever been able to do
lt-make fixed general tariff so that it will
run Tor any length of time. There will be
continual ch anges necessary, with respect 10
particular commodities and with respect TO
particular service and particular districts
Tariff should be flexible.
In order to be able to undertake this work
81 all the Interstate Commerce Commission
would have to have q representative on the
traffic staff of every railroad in the United
states, lth full powe- TO act, in order TO be
able TO establish rates without damage TO The
community which the railroad companies
serve or the public interests.
The Interstate Commerce Commission under
the most favorable circumstances can do no
more than examine the Tariffs submitted by
the railroad companies, and approve them as
maXImums, allowing the railroad colnpa nies
full liberty OF action wi thin the maximums.
That would afford the railroad com panies pre-
clsely the same power that they possess to-
day. The law, as understand, requires rail-
road companies TO file with the Interstate
Commerce Commission their tariffs, and when
the tariffs are 80 fled they become the legal
tariffs No higher or lower rates can be made
without giving ten days notice for any ad-
vance, three days for reductions. What
mo re authority is ii possible 10 give the COM
mission? None that l can think of, except in
the case OF com plant against rate to its
unreasonab.eness.
The Supreme Court, as / understand, has de-
cided that the commission. while it can find
whether the rate in point is reasonable or not,
IL it declares it unreasonable has not the
authority TO determine or fix what is a reason
able rate. That is about all the additional
authority with regard to rate-making, the
Interstate Commerce Commission is seeking.
That may be given by Congressional acti on,
but l doubt 1t. In fact l think If you win
poll the raie-paying community you will find
d very large ma jority who prefer that the
rates should be made by the railroad people,
who understand their business, than that the
rates should be made by board at Washing
ton.
Let me illustrate the difficulties that would
beset such board Suppose a shipper in san
Francisco wanted TO place his goods in the
Missouri River territory. On inquiry he finds
that the established rates viii not enable him
TO market MS goods in competition with other
sections enjoying lower rates. He calls upon
the carriers operating between San Francisco
snd the Missouri River. He represents the
conditions and asks them TO make rate that
will enable him to meet that com petition.
How would he like 10 be told to send his ap-
plication TO Washington and ask the Inter
state Commerce Commission to authorize the
rate?
The Interstate Commerce Commission has
been presumed to construe its authority as
ably high rates. In other words, that it should
protect the public against rates deemed un-
reasona ply high, but not the railroads from
unreasonably low rates made by bad manage
ment. II it should be clearly made the duty
of the Interstate Commerce Commission to re-
strain carriers from making ably low
rates as well as unreasonably high rates there
might be some benefit TO carriers as well as to
shippers.
Railroad men believe that railroad property
or money invested in railroads is as mucn en-
AT n
eminent as money invested in farms or manu-
factories.
Traffic Manager Stubbs illustrated this
point by citing the case of the Burlington
and Northern Railroad. 1t made a very
low through rate between Chicago and st.
Paul in competition with the Chicago.
Milwaukee and ST. Paul and the Chicago
and Northwestern. The Burlington and
Northern PASSED through an undeveloped
and unproductive territory, while its com
petitors passed through thickly populated,
rich and productive country. For this
reason the latter while they met the
through rates of their com petitor could
not and did not apply such rates to inter-
mediate points and thereby violated the
long and short haul clause of the inter
state commerce law. Complaint was made
against them, and although it was shown
that the rates established by the Burling-
ton and Northern resulted in foss to all
was violation OF the law in charging
higher rate for short haul than for long
haul over the same line.
Il understand" concluded Mr.. Stubbs,
that the stand taken by the Interstate
Commerce Commission was that il was
not their business to protect the railroads
from unreasonable com petition. Subse-
quently the B. and n. went into bank
ruptcy."
Notice was given yesterday by the
Southern Pacific Company and the Rio
Grande Western to The local passenger
association of Withdrawals from. that or
ganization. Similar action was taken last
week by the Chicago, Burlington and
Qdincy and by the Chicago, Rock Island
and Pacific. This means the undoubted
and complete dissolution of the associa-
ton, but not that an immediate rate war
will necessarily follow.