Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-01-04
Discussed by the Interstate Com
merce Commission,
TO RAISE RATES At PLEASURE
Uniform Classification Regarded as
IL ~
Necessary. 81
~ ]
PROFITS OF THE LINES

report was devoted to discussing recent
combinations Of railway lines. The COM
mission has no official knowledge of the
extent of recent railway combina tons, but
it has informed itself as well as possible
from unofficial sources Disregarding mere
rumors, but taking account Of well-authen-
ticated statements, there were absorbed in
various ways between July 1, 1899, and No
vember 1, 1900 25,311 miles of railroad.
There are in the whole United States some
thing less than 100000 miles of railroad,
and more than one-eighth Of this entire
mileage was, within the above period,
brought, in one way and another, under
the control of other lines The scope and
effect of these operations is Illustrated by
some examples given in the report.
The commission goes on to say that when
We consider what has actually been done,
what Is undoubtedly in contemplation, the
entire feasibility of these schemes the very
great advantage which would result to the
owners Of the properties involved, and the
fact that step once taken in that direc-
ton is seldom retraced, 1t becomes evident
that in the immediate future the main
transportation lines Of this country will be
thrown into great groups, controlling their
own territory and not subject with respect
to most of their traffic, to serious compe-
tition.
Such condition is not without it's bene-
fits, the report says The evils which COM
that competition, and many of the worst
forms of discrimination will cease. Owing
to wasteful competition transportation by
rail actually costs more than it ought. To
eliminate that competition will be to work
an actual saving In the cost Of the service,
and this should rebound to the benefit Of
both the carrier and the shipper.
The danger It is commended. lies in the
fact that the only check upon the rate is
thereby removed. Hitherto competition
between carriers has kept down the price
Of carriage. If that is taken away nothing
remains except the force Of poplar opin-
law, which are Of little effect when directed
against slight and gradual forces. 1t will
lie within the power Of two or three men,
or, at most. a small group Of men, to say
what tax shall be imposed upon the vast
traffic moving between the east and west.
The nature of the service and the condi-
tons under which this species Of property
is operated may be such that It cannot be,
and perhaps ought not to be, brought un-
der the controlling force Of competition, but
those very conditions make 1t imperatively
necessary that some other control should
be substituted for competition.
1t Is idle to say that freight rates cannot
be advanced. During the past year they
have been. by concerted action upon a
vast volume Of traffic. advanced in every
part Of this country. 1t is equally idle to
say that they will not be advanced. It is
both human nature and the lesson of his
tory that unlimited power induces misuse
OF lnaC power. Railways are not COmDln-
ing for the purpose Of "extortion and
abuse but none the less should the peo-
pie provide some protection against that
possible result Of the combination.
Many Changes in Rates.
The commission says that 1874 changes
were made in the official classification jan
uary I. 1900, by carriers using that CLASH
fication. of which S1S produced advances in
rates and resulted in reductions. Based
on Chicago-New York rates. Of these ad-
vances 434 Increased the rate 1913 per cent
and 80 as low as 1873 per cent. Six of the
advances amounted to 100 per cent OF the
old rate. The average advance was 355
per cent. Changes in the southern CLASH
fcation since January last worked an ad-
vance in rate 531 articles and reduc-
ton upon 105 Using rates from Ohio
river points to Atlanta as basis. the aver
age advance was about 80 per cent and the
average reduction about 26 per cent.
Changes were made in the western classif1-
cation on January . to the number CT
257, of which $40 were advances and II re-
rates from Chicago to the Missouri river
were on the average Ala for advances and
BIT per cent for reductions. BY these
changes in classification. therefore. rates
upon a considerable part of freight traffic
in all portions Of the United States, many
of them applying on the most common ar
ticles Of merchandise, have been very ma
terially advanced. In addition many com
making the articles affected take higher
class rates.
Raised to Increase Revenues.
The commission refers to its investigation
in regard to the changes proposed to be
made in the official classification. and says
such changes were not made because some
articles were found to be paying too low
rates or others too high rates compared
| with other articles in the same class but
| 49, had 1nr n tn-
| crease their revenues aud instructed the
| classification committee to make the changes
| for that purpose. There was no claim CT
any unusual need Of revenue. Not tor years
| had traffic been SO heavy or gross receipts
| 50 large then, but 1t was Insisted that
| the cost Of operation had been enhanced,
| and net revenues would thereby be de-
creased. Comparisons are made in the re-
| port for three large eastern systems, which
show that the percentage or operating ex-
penses to earnings was less n the year end
| ing June 80. 1900, than for the correspond
| ing year 1899, or for the average from 1870
| to 1893. Another comparison OF these state
| ments shows greater net earnings per mile
| for 1900 than for 1899 or for the average
| from 1890 to $685. 1t cannot be said what
| effect these advances In rate, which pre-
vailed during the last half Of the year lNt'
may have had upon the result for the entire
| year; but when 1t is considered that gross
| receipts, and therefore net revenues enor-
| mously increased during that year. it is ev-
| ident that there is little in the claim that
| increased cost Of operation justified these
| advances in rate.
Uniform Rate Classification.
| The commission says it must be apparent
to the thoughtful mind that equal charges
for equal service cannot be secured without
some restraint upon the competitive action
of Independent lines, and refers to classifi-
cation, interchange of cars, switching SER
| vice. storage and terminal charges, demur-
| rage car service rules and other similar
matters as having been looked upon with
favor as operating tors pubic advantage.
| Uniform classification, for example, Is re-
| garded so desirable that the commission
has recommended and urged Its adoption
| by voluntary action, or, that failing, by
compulsory legislation
! Under the conditions now existing IT. Is
inevitable that frequent Determinations
should occur and endless acts Of injustice
| be committed.
If public transportation can be bought
| and sold like commodity. the largest pur-
chaser WILL some of the time, II not all of
| the time, get the best terms. 1t is idle to
suppose that railroads will actually and all
the while compete with each other as to
| every item Of service or facility and at the
same time expect that a.. their patrons.
small or large will be treated exactly alike.
Such a result has never yet been realized,
and practically will not be realized. The
policy now pursued cannot and will not pre-
vent an outcome OF vicious Determinations.