Omaha daily bee., 1902-03-30
AN ERA IN RAILROAD AFFAIRS.

Eastern railroad officials are said to
regard the injunction proceedings
against the western roads as marking a
new era in railroad affairs in this coun-
try. A New York paper quotes a lead
ing trunk line official as saying that five
years ago the action Of the Interstate
Commerce commission would have been
the source Of widespread disaster, but
while today its influence is important,
the reason disaster is not apt to follow
is the interholding Of securities Of the
various large systems Of railroads by
associated capital. He said that the
effect Of the injunction is to compel
absolute and unequivocal maintenance
of such rates as have been approved by
the commission, whereas five years ago
such an injunction would have resulted
in an immediate and open cut in their
tariffs by the weaker lines. To-day"
said this railway official, st is only
the community Of ownership which
prevents such a cut Immediately, but
the incentive still is there and the ne
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sumo that the deliberate way in which
the injunction has been received Is
merely an indication of the fact that the
new condition will be met after a care
full discussion Of consequences"
Assuming that there will be no cut
ting Of rates by the railroads ~enjoined
and that these lines will in turn see to
1t that other lines will do no cutting,
this railway official said he should like
to know how the weaker lines, those
that usually are tacitly allowed q diff
ferentlal, are to get any business
at all. THE only way they can now
get It." he observed, sis to bid openly
for that business by filing reduced
tariffs. The stronger lines cannot and
will not allow open tariffs TO be filed
naming lower rates than their own"
But II, as is intimated, the weaker lines
have been tacitly allowed to cut rates
secretly, how will permitting them
openly to reduce tariffs hurt the
stronger lines2 What difference will 1t
make to the latter whether the weaker
roads make lower rates secretly or
openly, all the other conditions being on
the side Of the stronger lines2 AS the
New York Journal of Commerce says,
the satisfaction of the stronger railway
companies with the new process, while
it does not solve the problem Of what
is to become Of the weaker lines, RAISES
a very strong presumption that If the
weaker lines make open rates slightly
under that of their stronger competi-
tors. which do not find 1t difficult to get
business, it would disturb the rate sit
uatlon less than the too prevalent prac-
tice under which the stronger roads are
constantly obliged to defend their bust
ness against the efforts OF the weaker
ones to encroach upon 1t by granting
secret rebates, or other favors, for in
dividual or local reasons" One thing
seems plain and this is that If the In
junction proceedings are to inaugurate
a new era in railway management the
public is likely to be benefited thereby
Meanwhile there is also railway
authority for saying that the action or
the Interstate Commerce commission
has already had good results. II Is
stated that the eastbound rate
has already shown material improve
ment and this is probably also true OF
the west. AS to bringing about a new
era in railway management, that is
most desirable II 1t shall cOnduce to a
better compliance with the law and an
abandonment of the unjust discrimina-
lions and abuses which compelled the
Injunction proceedings.