The Washington times., 1903-06-01
The War of Rates.

The long-taiked of classification sched-
ule Of the trunk lines and Western traf-
fc associations went into effect this
morning. and somewhat higher rates will
have TO be paid on variety of articles.
The schedule is known as classification
No. q, and it behooves prospective ship
pcrs TO study 1t II they have not already
done so. Nearly every kind of freight is
affected in one way or another. Proba-
bly, the most important change relates
to The minimum weight of shipments on
which the carload rates viii be allowed.
In the past it has been the custom of
railroads to allow these rates on ship
ments of less than $4,000 pounds. and
cases have been known when competi-
ton has been keen, where the shipper
got the rate on fourteen and fifteen thou
sand pounds. During the last three
years, however, the tendency has been
to compel shippers to fill a car before
they got the rate, and as the competing
railroads made agreements that this
should be done and they watched each
other carefully, the amount was in
creased to %, 900 pounds. Then came the
big freight meeting of last year, at
which it was agreed that the minimum
weight should be a, 600 pounds. This is
the minimum which goes into effect to-
day. The order relates to every pound
of freight going to the West or coming
from there. OF course, Washington and
~ every change that is made in weights
mum works a hardship upon the smaller
shipper. 1t is said that there are hun
dreds of these smaller men who can
conveniently gather 10000 pounds of
freight. but that they cannot get the adj
ditional 1000 pounds. 1t is also alleged
that all classifcattfons during the three
years have been against the shipper and
have had the effect of raising rates.
While there may be some truth in
this. it is certainly exaggerated. That
it is necessary for the roads to charge |
higher rates is admitted by all who are
familiar with conditions, but that they |
discriminate against the shipper is not
true, generally, because the better the
shipper gets along the more business he |
Will have for the railroads.
It is not many years since one of the
Vsnderbilts, who made most of his
profits out of his railroad properties by
his deals in stock in Wall Street. said
There is not half dozen systems in
the country which are being operated
with a legitimate profit. The people |
viii not pay the rates and the laws
viii not protect the railroads" This
was a radical view of the situation, but
it is safe to say that very few roads |
were paying dividends to their stock
holders, which was the cause Of the
frequent roars that went up from the |
PEOPLE of England who had put their |
money into Americans" The long |
hauls through sparsely settled territory |
made all operations a loss The Pa |
cifc lines and those of the Central Yves !
were in these days probably the heavies |
losers There was no way to make them /
pay It was simply a question of wait !
ing for population. To hurry matters |
the colonization departments of the |
roads were established and developed |
Then the growth began, and the influx |
o. people from all over the world have |
made the once sparsely settled terri |
tory thick with people. In the mean |
time the cost OF operation increased |
rapidly, and after the war it doubled /
1t has been going up since. Rates were |
increased. but all such moves were met |
with legal proceedings. Then came the
United States Steel Corporation, which |
put the price of rails and all other iron !
and steel used by the roads up 25 per
cent Labor unions, too, have increased |
there was nothing for the roads to do !
except to raise rates or go out of bust |
ness. They have raised the rates, which |
IS the cause Of the complaints of the !
shippers.
Now, it was said on good authority to-
day, the road which does not pay is the |
exception, instead as it was a few years |
ago. when the paying line was the ex-
ception The reports just issued show |
that the earnings of the roads for the |
month ended May 10, were % per cent |
higher than for the same time last year
The Encouragement is still going on. |
and 1t was wise man who can foretell |
what the Goulds, the Vanderbilts, J. /
Pierpont Morgan, Hartman, and the |
others are going to do. The community |
of interest prevails and it is predicted |
by some that it is only question Of |
time. as the process OF the swallowing |
of smaller systems by the larger goes on, !
that one group of men Will own nearly |
all the roads IN the country. The men |
mentioned, and their fathers, are the |
ones who have put most of the roads on |
!