The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-01-12
THE REDUCTION OF RATES
It is Accomplished Faster Without
Competition.
so DECLARES THE RAILROAD MAGNATe
He Gives figures Showing Growth Of Traffic
and Reduction Of Rates and Says Bust
ness Has Outgrown Facilities
m, MANY Trunk ;cae
on Many Trunk Lines.
(By the Associated Press. J

al 81, ~. L., Jan. lV.-ID ne features OF
the Tri-State Grain and Cattle Growers
Convention here today were the address
OF President James j. Hill and the prac-
tically unanimous adoption of the reso-
buttons commencing him for his work in
hehaf of the Northwest. These resolu-
tions, after declaring the most natural
line of transportation for the products
of the Northwestern States and for the
trade of the Orient destined for the
North, Middle and Eastern States is along
the route followed by the Northern Pa
cfic Railroad, proceed as follows:
1T is the sense of this meeting, there
fore, that in resisting the attempts of the
Union Pacific Railroad and it's allies on
the one hand and the Canadian Pacific
Railroad and its feeders on the other, to
secure control OF the Northern Pacific
Railroad, James j. Hill has performed
a notable public service and once more
displayed the far-sighted and business
like policy that has characterized his
long career as the great developer OF
Northwestern resources and the most
watchful guardian Of Northwestern inter-
csts."
These resolutions were made before Mr..
Hills arrival but later an attempt was
made to rescind them. This failed. how
evelr, and they stood as the expression OF
the convention.
President Hill opened with a few words
of praise for the farmers, saying that
the nation at large has more to expect
from those who cultivate the soil than
from all others combined"
He thought the best use for the good
lands as yet unsettled a serious ques-
tion for the consideration of statesmen.
After speaking of the development of the
Northwest he said he thought one kind Of
community of interest" which really ex
listed was that between the producer of
tonnage and the carrier: the land and
its products and the railroads will either
prosper together or be poor together.
Much is being said about combination
between railroads and competition. The
law of the survival of the fittest must
inevitably end such competition as eX-
lists by the destruction of the weaker by
the stronger This has already been
done in the East. He said:
''Twenty-fve years ago, it was sup
posed that competition was necessary TO
reduce rates l think that we have shown
in the Northwest that without competition
rates have been reduced faster than any
where else in the country.
There has recently been an attempt to
show that we have no interest in the
building up of the prosperity of the
people of your State and of the North
west. If we did not do everything in our
power to build you up we would be false
to our best interests. Our object in ac-
curing the Burlington Jointly with the
Northern Pacific railway was to insure an
outlet to the best markets for the grain,
live stock and lumber for the Northern
States, and to increase the volume OF
our traffic TO the end that we might at
all times be able to establish the lowest
rates and most favorable conditions
under which the traffic must be carried. .
Mr.. Hill continued:
THE conditions of the general railroad
situation in the United States at the
present time are hardly understood. For
the year ending June 80, 1890, the num-
Der of tons carried one mile by all the
railroads was 76,2O7, 100000 tons. In
1900 it was 141 600 600, 900 as shown by
the Inter- State Commerce Commission re-
ports. In 1901 safe estimate will bring
this to 1863 900, 900, 900 tons carried one
mile, an increase of 800 per cent in eleven
years. During this time the mileage of
the railroads in the United States in
creased is per cent. While the tons
moved show an increase of 100 per cent.
the earnings show an increase of less
than 40 per cent. During this time the
rates have been reduced to the extent OF
that difference. Destructive competition
has forced the weakest lines into sank-
ruptcy, and today they are owned by
the lines that were able TO MAINTAIN
their position and credit, giving the
ability to acquire these bankrupt roads.
The Baltimore and Ohio and the Penn
sylvania for half a century have been
rival roads. Both States and cities ac-
lively aided in building them up-de7
structiye competition between them has
finally resulted in the Pennsylvania rail-
road owning the Baltimore and OHIO.
Did the rates advance and the people
along the lire of the Baltimore and ONO
suffer? On the contrary the tirst step mas
been to furnish money to cut down the
grades, double-track the line from the
Ohio River to Chicago, and TO furnish
cars and facilities to handle the bust
ness to the best advantage and at such
rates as viii enable the shippers along
the line to open up their lines ana IN
crease their business in every branch OF
trade and to rely upon solvent com
pany for thu, facilities necessary to trans
act their business.
After spc aking of the congested state
Of transportation throughout the country
he said:
~ careful examination of the railway
problem from national standpoint,
will, / b,lieve, show beyond question
that the business of the country has out
grown the facilities on most Of the trunk
lines, and that new facilities not now
apparent will be necessary to relieve the
situation. Rates in the United state:
are much lower than in any other coun.
try. Wages are higher-the cost of mucf
of the ma terial is much higher than il