The times. [volume] (Richmond, Va.) 1890-1903, 1897-04-18
RensonabIe- Freight CHARGES.

Commenting upon the Worlds criticism
Of Mr.. Bryan's dictum as TO the true
measure of reasonable freight charges
the Richmond Times says:
The true principle upon which rates
are TO be adjusted is that every article IS
10 be charged what It will bear. what II
will bear is the lowest rate consistent wi1l
a reasonable profit 10 the road. That Is
the economic law OF the case, and every
railroad and other business will come to
be governed by il II the road or the busi-
ness is left alone TO adjust its charges
according to the exigencies of the bus
mess. and IL IS not interfered with by
a bungling public officer executing mis-
conceived act of the legislature. We DO
not say the business will come 10 De
governed by this principle in a day,
week. or a month. But II 1t Is left alone
IL will work down 10 a bearing ana many
come TO be adjusted upon that basis.
This is perfectly true and sound in every
case where free competition exists. But
when the men or the railroad companies
whose competition should regulate charges
upon a scientific principle set aside that
principle by conspiracy among themselves
the rule does not work.
Hinder free competition the freight charge
must sooner or later so adjust itself as 10
pay a fair profit 10 the railroad; while
leaving a fair profit TO the producer ana
fair price 10 the consumer But when the
railroad companies combine TO take all the
profit and exact as freight charges All
that the traffic will bear" the consumer Is
forced TO pay an exorbitant price and The
nroducer Is robbed OF his profit on produc-
ton. Still worse is the evil when the rail-
road MANAGERS, in collision with shippers,
make discriminating rates, charging one
shipper or the shippers Of one town more
than they charge other and more favored
shippers. BY this device towns have been
ruined and merchants have been reduced
10 bankruptcy by the arbitrary will OF rail-
road managers who stood in with COM
peting towns or rival merchants.
Every railroad is Of necessity a monop-
oily. 1t exists by grace Of the peoples
franchise on condition that ii shall render
a certain service to all the people alike
at reasonable rates. When II refuses TO 30
this the State which created the monopoly
is bound 10 restrain it from oppression.
IL Is the imperative duty OF the State TO
see that the railroad gives reason lble
rates and that II treats all the people alike
But what are reasonable rates2 What rs
the basis for their calculation? Mr. Bryan
says the measure should be the present
cost OF reproducing tut id4iiodUS NoH-
cerned. This the World denies. There
have been times when a railroad could not
have been reproduced for less than half as
much again az il originally cost. Is such
a road entitled TO advance its rates ac-
cordingly without regard 10 it's actual
cost? Again. railroads have been puIt
at very great expense. and have enor-
mously increased the value OF all properly
in the regions traversed. Are their stock
holders TO be required by law 10 fort~t
a great part Of their investment by charg-
ing only such rates as will pay dividSnus
upon the much smaller cost at which the
roads could now be reproduced?
Under stress OF free competition this
might be forced upon them. just as bank
ruptcy itself is often forced upon men who
have built factories and the like at a time
OF too great expensiveness. But does this
Justify the law IN compelling such injus-
tice where a railroad is rendering service
that can be rendered by nobody else, at
rates that yield only a reasonable return
for the money actually invested?
''Reasonableness" should be reasonable.
New York World.