Rock Island Argus., 1902-11-13

Whenever the railroad or steamboat
finds that someone is undertaking it.,
down goes the rate.
Railroad a Factor.
The railroad has been the prime
factor in the reduction of freight
rates in this country. Its first great
function was the reduction of steam
boat rates to reasonable limits.
Railroads then assailed one another
and their rate wars have been of in
estlmable value to the community.
Attacking the pocketbooks of stock
holders, they have compelled those
economies to which | have lust al
luded, which have reacted with great
beneht to themselves. But after all
the rivalry, shrewd railway managers
have discovered that there is n com
munity of interest that puts a limit
on competition, but as yet there is no
community of interest when Il steam-
boat enters into the question. When
ever line of steamboats, can be es-
tabllshed, the railroads community
of interest dictates as low n rate ms
will absorb the great mass of bust
ness.
It's improvement of rivers is not work
ing 10 Deneht certain steamboat lines,
nor TO lnJure certain railroads. Its
OBJECT is to obtain cheap transporta-
ton for the communities living on the
waterways. TO YOU and me ii makes
no difference whether the railroad or
the steamboat carries our freight,
provided it does the work cheaply.
In fact, experience has shown that
the railroad is preferred, all other
things being equal, on account of the
quickness of delivery. The value of
Il river improvement should not be
measured by the number of boats
that navigate it. but by the freight
charges that the people along its
banks have to pay. If the railroad re-
duces its rates so that the shipper
prefers to send his commodities by
rail rather than by water, it is sad for
the steamboat owner, but the rest of
the community are beneficiaries.
River and Freight Rates
Let us apply this test to the Mis-
sissippi river: What effect does the
river produce upon the freight rates?
In Investigating this question l am
perfectly aware that l am entering
upon very complicated subject.
What with the General Classifica-
ton the Western Classification
the Illinois Classification and the
Southern classification, with com
modify rates ana class rates, with
carload lots and less than carload
lots. the railroads have created con-
fusion that il takes an expert to un-
ravel. Things too are not always
what they seem: the published rates
and the rates charged favored ship
pers do not always correspond. But
by assuming that the shipper is a
plain, ordinary citizen without in
fuence, that he desires to ship
standard article of first class freight,
in small quantities, the problem be-
comes more simplitied. 1t is also the,
most unfavorabIe comparison that
can be made for rivers, as that class
of freight rarely seeks water trans
"The two markets that particular
ly interest the people along the Mis-
sissippi river, are the Chicago and the |
st. Louis and East st. Louis markets. |
the published railway first class
freight rates from these cities to To-
calities in the central states"
The map showed cities in the up
per Mississippi river valley, with lines
about indicating the distance at |
which given freight rates obtain, be-
ng calculated to show the effect upun
rates of water competition.
1t was accompanied by table pre-
pared with the same object in
view. After explaining both, Maj.
Townsend continued:
''The published first class rates from
Quincy to st. Louis, n distance by
'ail of 179 miles, is the same as that
rom St. Louis to a point 36I miles
south. or from Chicago to a point 50
niles west. Between Burlington and
St. Louis, 222 miles by rail, is the
same rate as from st. Louis 81 miles
outh. or from Chicago III miles west.
FIRST class freight does not, however,
Usually seek water route, and if the
shipper happens to be Il
who handles plow
hares or stove castings in carload
OTIS. he will be as favorably located
Is if he resided in n town 81 miles
outh of it, and will have the same
reight rate as the town Sc miles west
# Chicago has to that city. 1t is evil
lent from the map and tables that
he Mississippi river has materially
ffected freight rates to st. Louis.
nut what is still more surprising is its
influence on Chicago rates.
''The st. Louis railroads have been I
utting rates to meet river competi-
ion. and the Chicago roads have to
ollow their example or the commerce I
f the river towns will go to St.
.ouis. The long and short haul reg {
lations of the interstate commerce {
compel the establishment !
g Nc lou, rotes to intermediate points,