The daily morning journal and courier., 1903-12-21
ABOUT THE RAILWAYS
SEVENTEENTH ANNUAL REPORT
 oFINTERSTATE COMMISSION.

EIkins Law Praised for Hts Effect
 What the Advance in Freight Rates
 Meaus-concessIons to Favored shIp-
 pers-AccIdsnts and the Safety AppIi-
 anee Law-statistIes of the steam
 Lines.
 Washington, Dec. 2O.-A synopsis of the seventeenth annual report of the In- ter-state Commerce commission is here given:
 The preliminary account for the year ending June 30, 1908, shows railway re- turns for POI, ,457 miles of line, wwhich is approximately 9S per cent. of the en- tire mileage in the United States. Gross earnings for that year amounted to S1, ,s90, ,679, or S9,SS2 per mile of line. Operating expenses aggregated S1,24S,- 520, ,4SS, or S6.1s7 per mile, leaving net earnings of $641, ,6SO.196, or s3,1S5 per mile Fifty three million dollars in taxes are not included in this statement of operating expenses. Compared with the previous year the net earnings are greater by some thirty-four millions and stock dividends are greater by nearly ten millions. In 1897 the gross earnings averaged only $6.122 and op- erating expenses $4,1O6 per mile of line. a..s
 THE ELKINS LAW.
 The legislation passed by the last con- f6a El1EiF c law, is discussed. The commission says that the original law. the act to regu- late commerce, embraces two distinct objects, or seeks to correct two kinds os railroad abuses: First, to secure the publication of tariff rates which shall be just and reasonable and free from discriminations; and, second, to compel carriers to observe the tariffs so published without variation or ex- ception. -s r s...s. :.....
 The commission feels warranted in saying that the beneficial bearing of the amendatory legislation became evil dent from the time of its passage, and that it has proved a wise and salutary enactment It has corrected serious de- fects in the original law and greatly aided the attainment of some of the pur- poses for which the law was enacted. It is believed that never before in the railroad history of this country have tariff rates been so well or generally observed as they are at the present time. Other things, however, have con- tributed to the improved conditions now prevailing, and among them is the great increase in traffic, which, in most parts of the country, continues to move in unprecedented volume. The test of the law vii come when the lessened vol ume or competitive traffic invites sharp contest for business,
 ADVANCES IN FREIGHT RATES.
 One of the most significant things in the railway operations for the past three years has been the marked and general advance in rates Six years ago rail- road witnesses often insisted that rail- way rates could not be advanced, but the history Of the three last years has discredited these predictions. These advances in transportation charges have accrued principally through in crease of the published rate itself. Such increase applies in almost all sections of the country and many of the most important kinds of traffic. With some exceptions. class rates have not been increased. There have been actual in- creases of rates upon those commodi- ties constituting the bulk of railroad traffic, such as coal, grain, lumber, live stock, dressed meats and packing house products. An exception in the case of packing house products from Missouri points to Chicago is noted. Many ad- vances have been worked by changes in classifications. The class rates have generally remained the same, but num- erous commodities have been advanced from lower to higher class. Many commodities which formerly took a special commodity rate have been re- stored to the classification. There has also been a constant disposition to re- more special privileges which had pre- yiously been accorded and to charge for services for which before no charge had been made.
 These increases are general, and while, as applied to the movement of a considerable quantity of a given article, they are comparatively small, they amount in the aggregate to an enormous sum. The effect of these advances has been to corresponding increase the tax laid upon the general body of producers and consumers in this coun- try for the benefit of the owners of rail- way property. These advances have been usually, if not always, the result of concerted action by the carriers. It is idle to say that where such eondi- ton exists there has not been an un- derstanding between the carriers. The theory. of our law has been that compe- tition between different carriers, would prevent unreasonable advances and se- cure reasonable rates.
 Without expressing an opinion as to whether the action of these carriers has amounted to violation of law--and they insist that it has not--the commits sion desires to put out clearly and en- phatically the fact that such concert of action does prevail and practically eliminates all competition in the tariff rate. Competition formerly resulted mainly from the granting of secret rates which often resulted in the publication of the lower rate; but to-day rates are maintained and there is, therefore, no inducement to a particular carrier to re- duce the published rate, since each ap- pears to understand that reduction by 1t must be immediately followed by a reduction on the part of it's competitors. yTy1ae y.aaI1ira1,,apf oF thn law that oar-