The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1903-04-03
NULLIFIES
PROTECTION
RAILROAD RATE OFFSETS eENE.
FITS OF THE DUTY.
why ROADS DISCRIMINATE
Subject Discussed in Forthcoming Re.
port Of the Interstate Com.
merce Commission.

Washington, March 19.-Shortly be.
fore adjournment last summer the sen.
ate passed a resolution of inquiry into
the relation of railroad rates on i'm
ports and exports from ports of entry
to interior points and the rates on
the same articles originating at the
ports of entry. 1t has long been noted
that we had in operation in this re-
spect a reversal of the protective sys-
TEN. The supreme court has held
that the long and short haul clause
does not apply to foreign business.
1t results in consequence that the
British exporter may be able to lay
down a certain article in Chicago at
a lower transportation charge than
that on the same aticle if produced
in New Jersey. In its industrial as
poets this phase of the transportation
question is of far-reaching Importance.
The reply of the interstate commerce
commission to the resolution of the
senate is now in the hands Of the prin-
ter, and will soon be made public.
It contains a mass of information as
we'll as some intelligent discussion
of the considerations of the public
policy which weigh in favor of the
present practice.
The duty on cement is 8 cents per
100 pounds. The transportation charge
on this article from New York to Chi
cago was found by the commission
to be 20 cents per 100 pounds, and
from Vulcanite, N. j., it vas IA cents.
Cement is largely imported through
Newport News. From that port to
article was 10 cents. This charge
with the duty amounted to 18 cents
as against a purely domestic rate on
cement from New York to Chicago
of 20 cents. The testimony shows
that the through rate from Antwerp
and Hamburg via Newport News to
Chicago was IA cents per 100 pounds,
or exactly the domestic rate from
Vulcanite, N. J. The disparity to East
st. Louis is 1 cent greater in favor
! of the imported article.
Salt pays a duty in bulk of 8 cents
per 100 pounds. The domestic salt
rate from New York to Chicago is
20 cents, while the rate between the
same points on the imported article
is 13 cents. This, in effect, scales
the rate of duty down to 1 cent per
100 pounds. If, however, Newport
News is made the port of entry, the
rate to Chicago on the imported salt
drops to 10 cents, giving the foreigner,
with the duty, a rate 2 cents below
that on the domestic article original
ing in New York.
The duty on iron ore is 40 cents
per ton. From New York to Chicago
the freight rate on the domestic arti.
Gle was found by the investigation to
be $3.50 per ton, against $3.50 on the
imported article. This difference OF
80 cents n%eutralizes the tariff com.
pletely and throws in so cents a ton
toward ocean carriage on the foreign
article. A similar difference prevails
in regard to the ports of Philadelphia
Baltimore and Newport News.
On salt cake the import rate be
tween Newport News and Chicago as
compared with the domestic rate
from New York to that city favored
the imported article to the extent
of 8 cents per 100 pounds, or IN cents
in excess of the duty.
There is no duty on carbonate o.
potash. The difference in rates or
that article between north Atlantic
ports and Chicago was Is cents in
favor of the import as against the
domestic traffic. Such illustrations
might be multiplied almost indefinite
ly.
Many witnesses were asked by the
commission in it's investigation why
the railroads made such large differ
ences between the rates on import
and domestic traffic from points OF
entry to interior destinations; theil
answers, though differing in form
amounted to the same thing. More
emphasis were placed by some upor
the competition of carriers with each
other, and this undoubtedly is a factor
of much Importance. 1t is not sufi
cient. however, to account for the
great disparity observed in many cases