New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-19
THE RAILROADS.
annual Report of the Interstate
Commerce Commission.

interstate Commerce COMMISSION, WHICH WAS
mitted TO Congress to-day, begins with discussion
of the E,lkins Anti-Rebate law. passed by the
LVIIth Congress. The commission says the origi-
nal act to regulate commerce embraces two distinct
Objects seeks to correct two kinds or railroad
abuses: First 10 secure the publication of tariff
which shall be just and reasonable and free
from Determinations, and, second, to compel car
riers to observe the tariffs SO published without
variation exception. Broadly speaking the lat
ter class of offences only affected by the Ell
kins act the provisions of which are mainly de-
signed to prevent or more effectually reach those
infractions of law like the payment of rebates and
kindred practices, which are classed as misde-
meanors. Under this amendment the railway cor
poration itself is liable to prosecution in all cases
where its officers and agents liable under the
former law. This change corrects defect which
has always been a source OF embarrassment. be-
cause it gave immunity to the principal ana Dene-
iciary of a guilty transaction. 1t is believed that
much benefit will result from the fact that pro-
ceedings be taken against the corporation.
The report adds:
The commission feels warranted in saying that
the beneficial bearing Of this amendatory legisla-
and that il has proved a wise and salutary enact
ment 1t has serious defects in the orig-
of the purposes for which that law was enacted.
1t IS believed that never before in the railroad his
tory OF tins country have tariff rates been SO Well
or generally observed as they are at the present
the improved conditions now prevailing, and among
them Is the great increase in traffic which, In icost
precedented volume. The test of the law will come
when lessencd volume of competitive traffic in
Vltes sharp contest for business
ADVANCES IN FREIGHT RATES.
Under the head Of Advances in Freight Rates"
the report says in part:
One of the most significant things in railway
operations for the last three years has been marked
and general advance in rates. Six years ago rail-
not De advanced but the history OF the last thPse
Transportation
principally through increase OF the published rate
itself Such increase applies in almost all sections
OF the country, and TO many of the most important
have not been increased. There have been actual
increases IN rates upon these commodities, con-
grain, lumber, livestock, dressed meats and pack
ing house products An exception in the Pac5nE
cage Is noted Many advances have been worked Etsd
generally remained the same, but numerous COM
modities have been advanced from lower to a
higher class Many commodities which formerly
took a special commonly rate have been restored
10 the Classification. There has also been a con
slant disposition TO remove special privileges which
had previously been accorded and to charge for
These increases are general and while. APP
piled to tho movement of considerable quantity
The effect of these advances has been to CORE
body of producers and consumers in this country
These advances have been usually if not always,
the result of concerted action by the carriers. 1t
there has not been understanding between the
competition between different carriers would pre-
vent unreasonable advances and secure reasonable
Without expressing opinion as to whether the
ACTION Of these carriers has amounted to Violation
mission desires TO point out clearly and emphat-
vail practically eliminates all competition in
the tariff rate Competition formerly resulted
often resulted in the publication Of the lower rate
Therefore no indictment to particular carrier to
reduce the published rate. since each appears to
re ny reorenent of the law Thai car
riers shall compete affords no protection 10 the
It has been frequently said that the adjustment
of freight rates is a delicate commercial PROPOSE
ton, which could only be dealt with by people
having a most intimate knowledge Of conditions
and could not be revised by any outside body. The
advances IN the last three years nave NOT Deed
with the traffic representatives, of the various sys-
systems. Railway managers insist that these ad-
vances have been justified by increased cost of
ing a period of prosperity In which railways are
entitled to share II VIII Ppo4Soiy De cohGedeG I
and is also certain that in some respects the cost
other hand many economies in the way of railway
operation have been introduced, and the great IN
crease in the amount of traffic has enabled rail-
roads to handle II cheaper in proportion. A table
Of all railways in the United States since 1897. This
shows that both gross and net earnings have very
The commission sees no assurance of CORE
hardly Conceivable that if traffic were to fall off If
gross earnings decrease. if times to
become prosperous, that the carriers would for
that reason reduce their rates 1t is true that in
case of hard times railroads would be obliged to
reduce their rates in certain cases, and If there
were competition between different lines serving
different markets that the rate to one market
from a particular source of supply, reduced,
this would of necessity lead to corresponding
reduction to other markets and from other sources
of supply But relative rates have been pretty
thoroughly adjusted between all parts of the
try. and the unifcation of railway property is
such that to-day it is easy matter to prevent
a decrease in rates except under peculiar cOndi-
tions and as applied to isolated commodities.
There is now way in which these advances can
be prevented. If they just and reasonable
they ought not to be prevented. In cases where
the reasonabieness of charges is fairly in doubt,
the benefit of that doubt should be given to the
railways; but it is impossible to contemplate with
indifference the fact that the results OF all the
recent improvements in transportation facilities is
an increase in the transportation charge, to
remember with indifference that this species of
property possesses the power to tax unjustly
every species OF property. If these charges
reasonable, they most insidiOus of
taking unjustly from the general body of the public
the benefit of the few, and some means should
be devised by which this can be prevented
concessions to favored shippers, and also some of
the evils resulting from the use Of private
1t gives review of the complaints before the COM
mission and its decisions since the last report; also
the court decisions and the cases pending.