The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-05-16
rate wars and secret ReBates.


AT the convention Of the State and Unit
ed States Railroad Commissioners, held
in Washington on May 10, President NJ.
e. Ingalls, of the Cleveland, Cincinnati
Chicago and ST. Louis Railroad, delivered
an address which was full Of food for
thought for those who are charged with
railroad supervision, as the railroad com
missioners are. Mr.. ingalls, based his ar
gument upon the ground that the country
is vitality interested in the successful OPP
GRAFTON of railroad properties, and then
showed wherein, under existing condi-
lions. it is almost an impossibilty to man
age railroad upon a proit-earning ba-
sis.
The railroad question does not concern
railroad management alone but the peo-
pie at large as well. He gave data TO show
that one-ffth of the people of the country
are directly interested ia railways, either
as employees of the roads themselves or
of manufacturers that are engaged in
furnishing supplies to the railroads. "Can
any body polite prosper" he asked, eff
one-hfth Of its number is engaged in
business that is losing money?" The rail-
ways serve the public in so many ways
that the prosperity of the roads and the
prosperity of the public are very closely
woven together Whatever hurts one is
sure to hurt the other. Last year 81, OOO.-
100000 of cash was paid out by the rail-
roads to employees and manufacturers, the
majority of which went in payment of
wages, while $lO,OO0OOO was paid in taxes.
"Can this immense interest be hurt with
out hurting the country?" asked Mr.. In
gals.
An illustration of how legislation has
hurt and Is hurting the railroads, Mr. In
gals cited recent decisions of the United
States Supreme Court. Under the inter-
state commerce law 1t has been decided
in various cases that the various railway
commissions have the power to revise and
fix rates In recent decision the court
declares that the railways are amenable
to the Sherman antitrust law, and there
fore they may not enter into any agree
ment with one another with regard to
rates. These decisions, and others re-
ferred to by Mr. Ingalls, have had a dis
organizing and injurious effect upon the
business of the roads. "Slnce the decision
of March, 1897 0he Sherman law decision),
there has been practically a state of an
archy so far as the maintenance of tariffs
is concerned, in d large part of the coun-
try"
Some persons have an idea that when
the roads are slashing rates, disregarding
tariffs and hustling each for itself that
the people are benefited through getting
lower rates. The idea is incorrect. The
real effect of rate wars, secret rebates and
the like is thus stated by Mr.. ingalls,:
Never in the history of railways have
tariffs been so little respected as to-day.
Private arrangements and understandings
are more plentiful than regular rates. The
large shippers and irresponsible shippers
are obtaining advantages, which sooner or
later,w prove the ruin of small shippers,
and in the end will break up many COM
mercial houses and ruin the railways. If
something is not done TO remedy the stu
alton the small shippers will be extin-
guished, and a few men with large capital
will control the entire merchandise bust
ness of the country"