The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1903-03-27
kiLL COME WHEN CONDITIONS
ARE NORMAL.
LOOK INTO THE FUTURE
10 Reduction Of Rates While Bust.
ness Is at Present High .
Water Mark.

Washington, March 25.-In deter.
mining the results of the new Elkins
Jaw, the subject has been set forth
us follows by one of the members of
BRhe interstate commerce commission:
n In general, and perhaps most i'm.
Hportant, the law enables the railroads
EAIESSO Withstand the demand of the big
III hipper (popularly designated as
for specially low rates, which
|an the past, have taken the form of
aIebates. OF this, the immediate con-
Nequences are:
n (a) To SHIPPERS. To the big
A2hippers, higher rates on their pro-
aaucts. 2. To small shippers, rates
with their stronger competi-
fors.
M (b) To the railroads.. Increase
-5ptal freight earnings. 2. Elimina-
lionsof the secret methods, i. e., the
Rebate, Of rate cutting as a method
hit competition.
III Consequence, better maintenance of
Yates.
N It should be noted that the conse-
Muences or the immediate conse-
Muences may not always continue the
n anne. Which is to say that fur
'#her time is required for a fair test
lbf the law. The conditions which
prevail just now in the railway world
and in the country at large are not
lormal. At least they are not the
Conditions which will continue to pre-
Pail Indefinitely into the future. Com
nerce, internal and external, is at
The flood tide. The carrying business
never was such as it is today. Not
I'M the history of this country have
The railroads done so large or so pro-
itable a business. From one end of
Nhe country to the other the common
carriers are straining themselves to
handle the great volume of traffic.
The real test of the law will come
when conditions revert more nearly
10 the normal. Then competition
will become more spirited again, not
apnly between the different roads, but
between shippers. Competition be-
ween the roads, under the new law,
Twill have to be open and above board.
INSTEAD of taking the form of secret
lfebates, which were given to the
pig shippers (the trusts) for their
business, the competition will take
" he form of an open and notorious
reduction. The road which takes
Mhis method of going after business,
@vill publish it's new schedule of tar
IFS, and the advantage will be open
0 all the world, the big shipper and
he small. The rival road will have
aotice of the cut, and will have the
spptiOn either to reduce it's own tariff
Spr see the business go by the lines
Ipf it's rival.
Under these conditions freight rates
are certain to be reduced. The prin-
sipal difference under this new ar
fangement, will be that the reduction
will result to the advantage of all
shippers-the small as we'll as the
arge-instead of being absorbed in
ne form of rebates, by the few
Erusts.
Will open competition be more or
ess fierce than competition by mean
IF secret rebates? Viii the genera
evel OF rates be lower, under the
lew order of things, or higher? This
s a problem which affords an inter
esting subject of speculation by rail
load man and shipper.
In working out an answer it mus
pc borne in mind that now the large
shipper and the small shipper are
united as against the railways. Hither
To the small shipper was not an ele
nent in the competition; he got O
pr its benefits; the fight was solel,
for the business of the large shipper
Now the influence of the small shin
| per is added to that of the large one
10 beat down freight rates.
On the other hand, the railroad
are protected, to a certain degree
| sy the publicity requirement of tn
| aeW law. A war in the open is no
/ so dangerous, in some respects, a
2 fight in the dark. Hitherto a roa
| could only guess what it's rival was d.
ng. 1t had nc means of KNOWN
| certainly what sort of a rate it's rivs
was giving for the traffic it carried
En attempting to meet the rivals rat
Z often played into the hands of tn
mutual enemy-the Shinner-and or