Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1903-12-19
EARNINGS INCREASE
Continued From Page I.

test Tor business.
The commission does not mean to
say, however, that preferences are no
longer secured of the nature which
the recent law aims to prevent. Tar
ifs as published and filed are SO franz
ed and contain such provisions as to
permit preferences without departing
from their terms, and some illustra-
lions are given. The tariffs are not
departed from III such cases, but the,
things which can be done in accord
ance with the tariff may be equivalent
to the payment of a rebate. The let
ter of the law is observed, but its pur-
pose may be disregarded The cir
cumstance that such determinations
occur does not detract from the eX-
cellence of the measure in question.
The amended law appears to be eff
Gent and workable, and gratifying
progress has already been made in the
publication of tariffs and in the OBJ.
servance of the rates thereby an
nounced. t
Advances in Freight Rates.
"One of the most significant things
in railway operations for the past
three. years has been the marked and!
general advance in rates. Six years
ago railroad witnesses often insisted
that railway rates could not be adj
vanced, but the history of the last,
three years has discredited these pre-
dictions. These advances in trans
portation charges have accrued princi-
pally through Increase of the publish
ed rate itself Such increase applies
in almost all sections of the country
and to many Of the most important
kinds OF traffic. With some exceptions
class rates have not been increased.
There have been actual increases in
rates upon those commodities consti-
tutinS the bulk of railroad traffic, such
as coal, grain. lumber, livestock, dress
ed meats, and packing house products.
An exception in the case of packing
house products from Missouri river
points to Chicago is noted. Many adj
vances have been worked by changes
in classifications The class rates
have generally remained the same, but
numerous commodities have been adj
yanced from lower to higher class.
Many commodities which formerly
took a special commodity rate have
been restored to the classification.
There has also been a constant dispo-
sit1on to remove special privileges
which had previously 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 arti-
Gle, they are comparatively small,
they amount in the aggregate to an
enormous sum. The effect of these ad.
vances has been to correspondingly
increase the tax laid upon the general
body OF producers and consumers in
this country for the benefit of the own
ers OF railway property. These adj
yances have been usually, if not al
ways, the result OF concerted action by
the carriers. 1t is idle to say that
where such condition exists there
has not been an understanding be-
tween the carriers. The theory of our
law has been that competition be-
tween different carriers would prevent
unreasonable advances, and secure
reasonable rates.
Without expressing an opinion as
to whether the action of these carriers
has amounted to violation of the law
and they insist that it has not-the
commission desires to point out clear
ly and emphatically the fact that such
concert of action does prevail as prac-
tically eliminates all competition in
the tariff rate Competition formerly
resulted ma ely from the granting of
secret rates which often resulted in
the publication Of the lower rate; but
today rates are maintained, and there
is, therefore, no inducem ent to par
ticular carrier to reduce the published
rate, since each appears to understand
that reduction by it must be imme-
! diately followed by a reduction on the
part of its competitors. The require
ment of The law that carriers shall
compete affords no protection to the
public.
1t has been frequently said that the
adjustment of freight rates is deli
cate commercial proposition, which
could only be dealt with by people
having most intimate knowledge of
conditions, and could not be revised by
any outside body. The advances in
the last three years have not been
made upon that theory They have
not originated with the traffic repre-
lsentatives of the various systems, but
rather with the financial heads of
those systems. Railway managers in
sist that these advances have been
justified by increased cost of operation
and that the whole country is expert
encing period of prosperity in which
railways are entitled to share. 1t
| will probably be conceded that rail,
ways ought to share in the general
prosperity, and it is also certain that
in some respects the cost of operation
is very materially advanced. On the
other hand, many economics ia the
way of railway operation have been in
troduced, and the great increase in the
amount of traffic has enabled rail.
roads to handle it cheaper in proper.
ton. A table is given showing the
gross and net earnings per mile of all
railways in the United States since
| 1897. This shows that both gross and
net earnings have very materially in
I creased during that period.
"The commission sees no assurance
| of a corresponding decline in rates in
1 the future. 1t is. hardly conceivable
| that if traffic We're to fall OF, if gross
earnings were to Decrease il times
| We're to become less prosperous, thai