The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-07-27
CUT RATE PROBLEM
The Fellow on the Outside Pulls the
String
AND DOWN GOES THE LOCAL TARIFF.
The Commission Unable to Cope with the
Situation.
D DOWN GOES THE LOCAL TARIFF.
BUREAU OF SUPERVISION SUGGESTED
IL VIII Afford Protection Against
Interstate Mnnipulations, ana Give
stability to State Rates.

Austin, Texas, July 26.--(Staff Special.
the railroad commission hearing had last
week for the purpose of developing in
formation with regard to the interstate
rate situation that might be OF service in
the formulation OF plan to prevent out
side manipulations from affecting fruisht
rates within the State. brought out .ust
enough to make 1t plain that the uues-
tion In hand is probably the biggest vet
tackled by the commission. One thing
was made very plain, and that was that
unless traffic men holding forth In St,
Louis, Chicago, New Orleans or some
other point of equal Importance beyond
the Texas State line can be prevented
from demoralizing State rates whenever
1t suits their convenience by cutting or
even threatening to cut interstate lutes
the commission might as well surrender
It's rate making and regulating power.
The suggestion that any Texas line p.o-
<ecting Interstate cut rayes might be
punished by reduction of its local rates
during the prevalence of the Interstate
cut was shown to be worthless for two
reasons. First, because any line upon
which reduced tariff might temporarily
w Put IA OpcldtlOu WOulu yet I'LL lne
competitive business within its reach
while said tariff obtained: and. second
because even though the carrying OF re-
duced tariffs might be considered 4 pun
tshment 1t would be a ten to one shot
that the real culprit would in most cases
escape as the line first giving notice Of
reduced interstate rates is rarely the line
responsible therefor. AS rule SAID no.
tice Is given in sef-defense and after the
real author Of tho valuation I'M t,o,,
in his work.
Under existing conditions big shippers
with lots of stuff to move Texasward will
interview one railroad commercial agent
after another in an effort to get cut in
the rate. The fellow that gets the bus-
ness is Immediately suspected Of having
made a cut contract to move the freight
at less than published rates and IN ninety
nine cases out OF a hundred the suspicion
is justified To get as nearly even rs
possible the fellows that do not get the
business Immediately give notice OF Il rate
which they think is close or therenbouts
to the rate the successful fellow Is sup
posed to have quoted. And this Is just
what the latter Is waiting for. As soon
as his competitors give The notce re-
ferred to he gives notice OF the late he
actually contracted to move the ife;Sht
at and squares himself with the Interstate
commerce commission and alleges that
the said rate was forced by compe' live
conditions. On the other nand. the agent
who cuts the interstate rate as ABOVE In
Dictated may actually get but little inter-
state traffic to move. There may. row.
ever, be large offerings IF State traffic
that he would like to get but w1icn he
is afraid to rebate on for fear OF coming
in contact with the law. But IT,. by
disturbing the interstate rate, ne can
cause the State commission to put in All
local rate, his purpose is sc'
He gets the State business
at what amounts to cut rate. but 'croes
the commission to do the cutting for him
and steers clear of the courts.
~
Now, II no check upon such practites
can be devised, one of the principal OBJ
jects for which the State railroad com
mission was created need no longer be
tried for. Stability in rates and an even
break for all in the matter OF transporta-
tion charges will be obtained in dreams
only. The traffic men themselves admit
this, but in the same breath express
desire for a preventive. To hear them
tell 1t they are in a position where tn,ey
can not help themselves. The big snip
pers hold them up they declare, and ~1ile
compelling them to reduce their interstate
revenues place them where they must &C
cept reduction of State revenues 'Cr IN
the face OF the emergency rate act tire
latter Is sure to follow where the first Is
submitted to- rs matters stana now
two or three lines with but short mile
age in the State which Is only sliGntly
affected by State emergency rates, are IN
a position to keep rate matters IN as
organized condition all the time. thus
placing the other lines at the mercy OF
the heavy shippers. The recent applica-
ton for a revocation OF the crude petrol
cum tariff in order TO drive Independent
refneries out OF business is case In
point. The Standard OIL people, taking az
of the situation. threatened 10
take some OF their immense business away
from certain lines II they did not make
he application In question. But the COM
mission saw the point and said appilca-
lion was refused as much to the refer
Of the lines making it as to any one eise,
as they above all others realized the
nequity thereof
What's the remedy for all this? Thats
What the commission wants to ma ana
hats what it asked the traffic men last
week when they appeared to tell their
tales of woe. II does not wish to deprive
he railroads of legitimate revenues but
N the face OF what seems deliberate
sacrifice Of interstate revenues nothing
better than retaiatory assault upon
State revenues has yet suggested itself,
Unless 1t be the proposition looking 70
he creation OF a bureau 10 be maintained
,y the Texas lines under commission ieg-
ilation for protection against interstate
,ate manipulations. Unofhclally speaking,
he railroad commission seems to favor
something OF this kind and invited the
attorneys of the Texas lines TO formulate
md submit plan for It's realization anu
he understanding is that the invitation
has been accepted. Should satisfactory orr
arrangement be made for giving the bu,
eau life and should 1t ever set I'D shop
{ will not take long to discover WHEN
II the Texas lines II is that Is SO DON.
mated by its interstate connections lnat
he preservation OF State rates ana the
impairment OF its revenues really concern
I but little.