The sun., 1904-12-17
The Railway Rate Question.

It may be said with confidence that,
notwithstanding the activity Of the dis
cussion, the possibility Of any early
action on the matter OF railway rate ad-
justment is small. Like the question OF
tariff adjustment, 1t is a case Of much
cry and little WOOL Probably SINH
larly ineffective noise will soon be heard
on the subject of ship subsidy. 1t might
be thought that the special object Of the
present session Of Congress was to give
the appearance Of a tremendous activity,
with nothing to show as q result OF it.
So far as the railway rate matter is
concerned, a policy Of non-action. or at
least of exceedingly deliberate action,
is most commendable. The issue Is
much too vast, complex and far reach
ing for any hasty or insufficiently con-
sidered decision.
Specific features in our system OF rail-
way rates, however, lie broadly open to
even drastic regulation; and to these
Congress may well devote its prompt
and active attention. Among them may
be cited the iniquitous system OF rebates,
usually by secret agreement. As we
said in commenting on the Presidents
message, the suppression Of this method
of doing business would be as much in
the interest OF the railways as OF the
general public. Good morals and good
business would be alike conserved by
such a step. Congress has enough to
do in the way Of correction Of fragrant
wrongs and abuses without making
experiments in Federal adjustment Of
rates by processes which would upset
our entire national business in the de-
partments Of trade, transportation and
finance.
We are quite unable to discover any
rational basis for 20 revolutionary
process as Federal control and adjust
ment Of railway rates. There are un-
doubtediy certain wrongs which de-
mand correction, but they are local,
and should be treated as such. A proper
enforcement OF already existing laws
would be sufficient remedy In most,
il not In all, OF these cases. Taken as q
whole, the average Of our railway rates
is exceedingly low. On a basis OF per
ton per mile rate, it is one-half that Of
Germany and less than one-third that
of England. British trade competitors
affirm that one Of the prime factors in
our vast domestic trade, and In our
ability to compete In the foreign field,
is the amazing oheapness OF freight
transportation. There is no general or
popular demand in this country for lower
rates, and the only agitation there is on
the subject Is political and devoid OF
sound foundation.
Federal regulation OF railway rates
runs In two possible directions-both
dangerous. One OF these is centraliza-
ton Of power, already menacing proc
ess in other directions. The other is
Socialism. Government control Ii very
near of kin to the Government own
ership for which DEBs and his cohorts
are clamoring, That way lies danger,
| II not death, and no careless step should
be taken in such a direction.
Fortunately. there is little probability
Of any Congressional tendency toward
that pit. The very magnitude Of the
proposition is likely to prove the re-
straining agent. II Is fairly realized
that the complexities OF the problem
are not for amateur determination, and
few members Of Congress claim to be
railway experts. The fixing Of . ma
tional horizontal rate on specified items
would give some roads an enormous
profit, while other lines would be simply
legislated out OF business. An equitable
classified scale for classified railways
could only be effected. II it could be
effected at all, after months Of the most
careful and thorough analysis by cx-
perts. These facts at least are recog.
nized, and Congress wisely hesitatee
about plunging into any proposition &C
radical.
The machinery for the correction
Of the most fragrant and pernicious Of
railway abuses already exists. Thus IA,
1t has been Of little use. II wound uE
and set properly going, with percep-
ton that the power which created |,
stands firmly behind 1t, the Interstate
Commerce Commission can remedy ths
major portion Of all existing evils. Their,
will always be those who want cheapel
freight rates on the merchandise they
ship, just as there are always those whit
want lower prices on whatever they
have 70 buy. But the country meek