The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-01-06

all shippers the same rate, they must,
as a practical matter, agree to some ex-
tent with respect to these rates. When
railway managers believe that the law
forbids in one act what they deem neces-
sary to the observance of another, the
obvious tendency of the enforcement of
such law is to lead to the discovery,
if possible, of some way in which it can
be avoided. So If there can be no
agreement in the operation of independ-
ent railways, it seems inevitable that
there will be unity or agreement in their
ownership.
Not one at all acquainted with what
is transpiring can doubt that combina-
lions have been formed and are certain
to be formed among railroads which Will
be more extensive, more permanent ana
more far-reaching in their ultimate re-
suits than those of any other depart.
ment of industry. The experience OF
thirteen years shows that there is no
serious difficulty in securing. upon tho
part of competitive lines, the adoption
and publication of rates satisfactory 10
carriers. but hitherto it has been found
impossible to secure the actual observ-
ance of rates on competitive traffic when
adopted A railway will seldom reduce
the open rate unless to meet some act
ual or supposed departure from that
rate by rival line, for it is well under
stood that such a reduction by one
means simply a corresponding reduction
by others To prevent rate competition,
therefore, 1t is only necessary to secure
compliance with the open tariff. In order
to do this it is only necessary That
competing line should own or control. Or
that some person in it's interest should
own or control enough of the stock OF
its competitor to influence the election
of a board of directors, and this seems
to have been the method recently adopt
ed in many instances.
The commission has no official know1-
edge of the extent of recent railway
combina tons, but it has informed itself
as we'll as possible from unofficial sourc-
es. Disregarding mere rumorS, but TAX
ing account of we'll authenticated state
mentS, there were absorbed in various
ways between July /, 1899, and Nov. z.
1900 25,31I miles of railroad. There are
in the whole United States something
less than 100000 miles of railroad; and
more than one-eight of this entire mile
age was, within the above period,
brought, in one way and another, under
the control of other lines
THE BUFFALO GRAIN POOL.
The commission next refers to a pend
ing investigation in regard to the hand
ling of grain between points of produce
ton and consumption, and in the course
of a hearing recently had in New York
city certain facts were developed with
reference to what is known as the Buff
falo grain pool. The effect of this ar
rangement has been to create a tonnage
pool of the grain moving by rail be-
tween Buffalo and New York. Whether
the traffic distributed by this pool falls
within the jurisdiction of the act to reg
ulate commerce, and whether, therefore,
the pool itself is prohibited by the fifth
section OF the act is a matter about
oh ~,
ton and consideration, no opinion is exc
pressed. The carriers insist that this is
not interstate traffic within the act
However that may be, the operation Of
this pool is instructive and apparently
bears out what the commission has pre-
dicted in previous reports. First, all
discrimina ton and favoritism between
shippers is done away with. Second, all
competition in respect to the rate Is re-
moved. Still, after everything has been
said, the fact remains that the existence
of this pool probably makes it possible
to maintain. between Buffalo and New
York, "a rate from to cents per bushel
higher than has in recent years actually
been paid. If other combinations could
be made to eliminate competitor in other
directions, much greater advances would
be possible. The commission has pre-
Viously expressed the belief that arrange
ments of this kind might property, in
some cases, be permitted, but only after
a method had been provided by which the
rate, when made, could be actually con-
trolled.
COMPLAINTS.
During the year $50 complaints of I'M
have been filed with the commission by
Shippers and shipping organizations.
Many of these complaints refer to the
increases in classification and conse-
in tnc Nryns o1a 1oxy do
by carriers throughout the country since
the last report was submitted. The
others generally allege excessive and
preferential rates and discrimination or
prejudice in the provision of transporta-
ton facilities. These 639 complaints in
clude informal as well as formal pro-
ceedingS. Some Informal cases present ted
matters not within the jurisdiction of the
commission, and a large number appeared
after examination to involve matters
which could not be adjusted by CORE
plants We're advised that authoritative
rulings could only be made upon regular
complaint and formal hearing. But few
of this large number actually reached
the formal stage, however, and in the
great majority of cases the reason why
the compliments did not follow that
course was doubtless on account of the
defective state of the law. They pre-
scented their grievances to the commits
sion in the hope that some relief might
come from its mediation. but that fail
UNDERTAKE
the. trouble of preparing and presenting
their cases in regular trial before COM
mission which, as law now stands, is
without without power to provide an adequate
its order promptly enforced.
Eighty-three complaints were satisfied
as the result of Investigations by the
commission and thirty-four are still
pending.
sTATICTICs OF RAILWAYS.
The report contains many statistics
taken from the twelfth annual report on
the statistics of railways In the United
States for the year ending June 80. 1900.
which was published several months
age. In this report the statistician re-
news his recommendations that reports
should be secured from express Vom-
corporations and companies owning
depot property, stock yards, elevators
and the like, and from carriers by water
so far as their business is interstate
traffic. The opinion is repeated that a
bureau of statistics and accounts under
the direction of the commission, should
be established. The advisability of pro-
vfding for monthly reports of earnings
and expenses from operating railways
is also suggested.
An abstract of the preliminary report
on the income account of railways in
the United States for the year ending
June 80. 1900, prepared by the statistfcian
to the commission, appears in the re-
port The results of the operations of
the railways during the fiscal year are
summarized in this advance income-ac-
count statement. 7sn
Following are some of the salient items
stated therein:
The preliminary. report is based upon
returns of operating roads representing
100, 4O6.09 miles of line, or about IS per
cent Of the milage in operation at the end
of the year. The gross earnings of these
roads were s., 4S0, 67S,0 54, or $7,776 per mile
of line. OF these earnings, 1896, $50 760
were classed as passenger earnings and
81, O4S, 26S,S75 as freight earnings. The
aal