The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-03-23
It Will Come When Railroad Condi-
lions Revert More to the
Normal. .:
No Reductions of Rates While Bust
ness Is at Its Present
Flood Tide.
The War of Rates Will Have to Be
In the Open "A Look Into
the Future.
From The Journal Bureau Room As, Post Build
ing, WASHINGTON.

ing, Washington.
Washington. March 23.--Iu determining
the results of the new Eilllins law, the sub
ject has been set forth as follows by one
OF the members of the interstate COM
merce commission:
In general and perhaps most important
the law enables the railroads to with
stand the demand Of the big shipper
tpopularly designated as trusts for
specially low rates. which in the past,
have taken the form of rebates. Of this,
the immediate consequences are:
(a) To Shippers--1-To the big shippers. high
TT rates thcir products. 9. TO small ship
pcrs, rates Identical with their stronger compel
itors.
jb) To the Railroads.. Increase of total
freight earnings. >. Elimination of the secret
methods, i. e., the rebate, Of rate cutting as
method Of competition.
Consequence, better maintenance of rates.
1t should be noted that the conse-
0uences are the immediate conse-
ruences Which is to say that further
time is required for a fair test Of the
law The conditions which prevail just
now in the railway world, and IN the
country at large, are not normal. At
least they are not the conditions which
will continue to prevail indefinitely into
the future Commerce internal and eX-
tcrnal is at the flood tide. The carrying
business never was such as it is to-day.
Not in the history of this country have
the railroads done so large or so profitable
a business. From one end Of the country
to the other the common carriers are
straining themselves to the limit OF their
equipment to handle the great volume OF
traffic.
When the Test viii Come.
The real test of the law will come when
conditions revert more nearly to the
normal Then competition will become
moro spirited again, not only between
the different roads, but between shippers.
Competition between the roads, under the
new law, will have to be open anu ABOVE
board. Instead of taking the form OF
secret rebates, which were given to the
big shippers (the trusts for their bust
ness, the competition will take the form
of an open and notorious reduction. The
road which takes this method OF going
after business, will publish its new sched-f
ME of tariffs, and the advantage Will be
omen to all the world. the big shipper
and the small. The rival road Will nave
notice Of the cut. and Will have the op-
tion either to reduce freights on It's me
ar see the business so by the lines OF us
rival.
certain to be reduced. The principal
difference under this new arrangement
will be that the reduction will result to the
ADVANTAGE of all shippers-the small as
we'll as the large-instead of BENG an
sorbed in the form of rebates by the lew
trusts.
Will open competition be more or less
fierce than competition by means OF Sc
cret rebates? Will the general level OF
rates be lower under the new order OF
things, or higher? This is pronlen,
which affords an interesting SUBJECT OF
speculation by railroad man and supper
In working out an answer 1t must DE
horne in mind that now the large shipper
simmer united as
against the railways Hitherto the small
simmer was not an element in the com
netition: he got none Of its benefits; the
fight was solely for the business or the
large shipper. Now the influence of the
small shipper is added to that of the large
one, to beat down freight rates.
War In the Open.
On the other hand, the railroads are
protected, to certain degree, ny tht
publicity requirement Of the new law
A war in the open is not SO dangerous
in some respects. as d fight in the dark
Hitherto a road could only guess what IT
rival was doing. 1t had no means o
knowing certainly what sort OF rate IT
rival was giving for the traffic 1t carried
Tn attempting to meet the rivals rate
often played into the hands of the mu
tual enemy-the shipper-and got the rat
too low. With both roads compelled t.
give an equal rate to ALL and to Civ
three days notice of any change, ant
with all rates a matter of common no
torlety, the fight must be in the open.
On general principles it is easier to aver
sn open conflict than to escape an am
buscade.
Fairer Deal All Around.
The Elkins law, it will be seen, is o
urinary interest to railroads and to PEG
Die who have considerable business wit
railroads. Indirectly the railroads an
the. subject of freights affect all bushes
and all the people. BY secret alliance
between the railroads and certain shipper
there have been built up such concern
as the beef trust, the oil trust, the graf
elevator trust and similar concerns. The
thrived and secured monopolies becaus
they had special rates from the railroads
They used their power to stifle competi
tion and to crush competitors. Then the
turned their power against the genera
public, and finally against the railroad
which had helped to build them up. TIL
railroads finally cried out to be delivere
from the monsters they had created I
this sense the Ekins law is favora BILE
the railroads. The small shippers lla
been nearly exterminated and the bi
shippers were In secret league to mule
the railroads. 49,.
Putting aside all technical or specula
Pc tive questions, there is one thing abou
the Elkins law which must be apparer
to the man in the street, namely that
is not iii the interest of such concerns a
the beef trust. the oil trust and othe
monopolistic shippers of that class an
that it is in the interest Of a fairer de;
ell around to the general public.
w. w. Jermane.
-. -