The times. [volume] (Washington [D.C.]) 1897-1901, 1901-04-07
LIMITED BY WATER RATES
Nj. G. Markham on Railroads Power
to Fix Freight Charges.

An Interesting Statement Made Be
fore the Industrial Commission
The Tariffs Prescribed by Vessels
on Rivers, Lakes, and Oceans.
NJ. c. Markham, assistant traffic man.
ager of the Illinois Central Railroad. in
his testimony before the Industrial
Commission yesterday, gave some in
teresting facts conccrnings the inability
of the railroads to enforce given rates,
stating that the power of the railroads
was circumscribed by the water car
riers, and that the maximum they could
charge was prescribed by the river.
lakes, and ocean carriers.
Mr.. Markham said that prior to 1870
the Mississippi River and its tribu
taries transported the greater part Of
the freight and passengers. but that
since then the construction of the large
railroad mileage in the Mississippi VAL
ley had year by year gradually de-
creased the volume of traffic handled
on the river. In 1870 there were only
q, 1S2 miles of railroad in eighteen
| States in the Mississippi Valley, as
compared with over 100000 miles in
( 1900 AS the mileage Of the railroads in
creased and their facilities for handling
freight and passenger traffic became
greater. the river traffic has appre-
ciably declined. This trend was Illus
trated, not only by the decreased move
ment from the trade centres situated on
the rivers. but by the withdrawal or
non existence of some OF the steamboat
companies which operated on the river
in the SOS and earlier
Lines of railroad" he said, run
close to the river on both sides nearly
all the way from New Orleans to st.
Paul. and from New Orleans to Louis
vile, and there are other lines of road
which detour from the river, yet con-
meet the chief trade centres and con-
troll the traffic formerly taken to the
river by rail and thence forwarded by
boat"
While this would seem to indicate |
that the railroads had sufficient control |
of the traffic to be able to dominate the |
water carriers and fix rates arbitrarily, |
Mr.. Markham says that the Mississippi |
and its tributaries are still potent |
factor in diminishing railroad rates and |
revenues. and their influence in this re-
spect was not confined solely TO the |
traffic between the trade centres stu
ated on the river. The complexities and
necessities which confront the rail-
roads in rate making are such as to
make this river influence almost con-
terminous with the Rocky Mountains
ta 40
on the other.
The recognized principle for rate con-
struction adduced from long practical
experience born Of strife. competition,
and rate wars between rail carriers. the
demand of rival markets, and the COM
mercial necessities of trade had rem
dered it imperative that certain fixed
relations should be established in rail-
road rates. For instance, the river
made the rates from St. Louis to Mem
phis or New Orleans. The railroads
running between these two points, to
get a share of the traffic, must neces-
sarily offer rates approximating those
of the river. l-
Chicago was not situated on the river,
but it would be placed at disadvan-
tage as regards the Memphis or New
Orleans trade if it were not put upon
a relatively fair rate plane. Then, the
railroads running from other towns sit
uated on The river, such as Cairo.
Louisville, and Cincinnati We're obliged
to make rates approximating those
made by the boats, and inland towns
whose trade may be affected by these
make claim on the railroads which
serve them for such an adjustment of
their rates as will equalize their disad-
vantages.
This system would spread, step by
step, until almost the entire Northern
country had partaken in a measure of
the low rates made necessary in the
first instance by the river influence.
Nor was this all, for, taking the con-
verse of the situation described, the
rail carriers were confronted with a
condition that abridged their power to
uphold rates to and from the inland
towns of the Southern States as much
as in the Northern States. BY these
means, Industrial enterprises remote
from the river were enabled to trade
at business centres in competition with
those on the rivers; and, further, in
land towns remote from the river We're
enabled to interchange trade between
each other at much more favorable
rates than the railroads would be justi-
fed in making if The river influence
did not exist.
In speaking of rates Of traffic east of
the Toronto-Buffalo-P ittsburg line, Mr.
Markham said that the rates of traffic
destined to the Southern States might
be affected by the ocean carriers to and
from north Atlantic and Southern ports.
Railroads running into the Southern
States by the Virginia gateways," he
said, have to measure their rates by
these If they should prove TO be lower
than those made by the influence of the
Mississippi River.
The Great Lakes, the ST. Lawrence
River, and the Erie Canal" he said.
virtually dominate the rail carriers
rates on traffic interchanged between
the Eastern and Western States. The
rail rates between Chicago and New
York are adjusted in competition with
those established by the lakes and
canals"