Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1903-12-26
RAILROAD RATES
ARE ADVANCING
interstate Commerce Commits
sion's Report Points Out
This Fact.
SHOW GREATER EARNINGS
Both the Net and the Stock Dividenda
Were Larger Than for Previous
Season-Elkins Law De.
clared a Benefit.

teenth annual report of the interstate
commerce commission was transmitted
to congress today.
The preliminary income account, for
the year ending June 80, 1903, shows
railway returns for 20l ,457 miles OF line,
which is approximately 9S per cent.
of the entire mileage in the United
States. Gross earnings for that year
amounted to 81, 500, l50, 697, or $9,3S2 per
mile of line. Operating expenses aggre-
gated 81, PAS, 500. 4S3, or $6,l97 per mile,
leaving net earnings of $641, $50, 1886, or
1916 per mile. Fifty-three million
dollars in axes are not included in
this statement of operating expenses.
Compared with the previous year, the
net earnings are greater by some
1884, O0, GOO, and stock dividends
are greater by nearly ten millions. In
1897 the gross earnings averaged only
$6,122 and operating expenses $4,106
per mil. of line.
Elkins Law a Benefit.
The commission feels warranted H.
saying that the beneficial bearing of
the amendatory legislation (Elkins law
became evident from the time of it's
passage and that it has proved a
wise n salutary enactment. 1t has
corrected serious defects in the original
law and greatly aided the attainment
of some or the purposes for which the
law was enacted. 1t 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, how
ever, have contributed to the improved
conditions now prevailing, and among
them is the great increase in tariff
which, in most parts of the country,
continues to move in.
Unprecedented Volume.
The test of the law will come when a
lessened volume of competitive traffic
invites sharp contest for business.
The commission does not mean to
say, however, hat preferences are no
longer secured of the nature which the
recent law aims to prevent. The tariffs
as published and filed are now gener-
ally observed, but in some cases the
tariffs themselves are so framed and
contain such provisions as to permit
preferences without departing from
their terms. The things which can be
done in accordance with the tariff may
be equivalent to the payment OF a re-
bate. The letter of the law is observed
but it's purpose nay be d~isregarded.
Cannot Lower Rates.
The amendment has added nothing
whatever to the power of the commits
sion to correct a tariff rate which is IN
reasonably high or which operates with
discriminating effect. 1t greatly aids
the observance of tariff charges, but
affords no remedy for those who are
injured by such charges, either when
they are excessive or when they are
inequitably adjusted.
The commission further points out
that the effect of the amendment has
been 10 bring about in many cases an
increase of railroad charges, and, as a
result Of the maintenance of rates, has
operated to intensity whatever was
wrong in the tariffs themselves.
Increase in Complaints.
There is doubtless one explanation of
the marked increase in the number of
formal complaints made to the commits
sion during the present year, which are
more than double those of the previous
year and more than four times the
number of those received the year be-
fore. The fact that such complaints
multiply is highly significant. Yet the
authority of the commission in respect
TO these matters has not been enlarged
in the least by the amendment in ques-
ton. However plain a case may be
appear, or however clearly injustice
may be established by pertinent proof,
the only order which the commission
has power to make is the limited and
inconclusive order to "ceas n desist'
from charging the rates or doing the
things found to be unlawful; yet even
that order has no binding force upon
the carrier, but can be disregarded with
i%mpunity until compliance is decreed
by the courts at The end of tedious and
expensive litigation.
Advance in Rates.
One of the most significant things in
railway operations for the past three
years has been the marked and general
advance in rates. These increases are
general and while, as applied to the
movement of a considerable quantity
of a given article, they are COMPARE
lively small, they amount in the ag-
gregate to an enormous sum. They
have been usually, if not always, the
result of concerted action by the car-
riers. 1t is idle to say that where such
n condition exists there has not been
an understanding between the carriers.
The theory Of our law has been that
competition between different carriers
would prevent unreasonable advances
and secure reasonable rates.
Eliminates All Competition
in the tariff rate.
There is now no way in which these
advances can be prevented. If they
are just and reasonable, they ought not
to be prevented. In cases where the
reasonableness of charges is fairly in
doubt, the benefit Of that doubt should
be given to the railways; but it is i'm
possible to contemplate with indiffer-
ence the fact that the result of all
the recent improvements in transporta-
ton facilities is an increase in the
transportation charge or to remember
with Indifference that this species Of
property now possesses the power to
tax ~unjustly every other species of
property. If these charges are un-
reasonable, they are a most insidious
means of taking unjustly from the
general body of the public for the ben
eft Of the few and some means should
be devised by which his can be pre-