The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1905-08-24
TRANSPORTATION A COMMODITY,
NOT A TAX.

In an extract from an address by
Mr.. Ralph Peters, published in this
issue under the title of The Railroads
and the People," the fundamental
point is well made that "transporta-
tion is a commodity, not a tax" When
you consider the generic difference
between the business methods by
which prices for the commodities OF
commerce are fixed from day to day.
almost hourly, and the political meth
ods by which taxes are assessed ana
collected, you will realize the fact that
rate-fxing by law will destroy abso-
lutely every advantage that is born OF
free opportunity in a competitive mar
ket. Railroad traffic managers Will Do
shorn of all power to cooperate with
producers III meeting contingencies
that are always occurring in relation
to some product or locality, which re-
ouire prompt action if a benefit is to
be secured.
In our opinion, shippers who are
urging the enactment Of measure
comforting rate-making power upon
the Interstate Commerce Commission,
or any other governmental agency
view the subject from an unsound
economic standpoint, and for that rea-
son are asking for a remedy Tor the
abuses OF rebates and determinations
which will cause greater evils than
the abuses of which they complain.
The important fact is, transportation
rates have been reduced to lower
point in the United States than IN
any other country as result OF 9
free hand in fixing rates that has COM
pelled every traffic manager to be
keen to prevent his road from losing
traffic because of lower charges Dy
some other road. Destroy this condi-
ton, interpose the barrier OF a gov
ernmental agency between the pro-
ducer and buyer Of railroad transpor-
tation, so that they can no longer
meet in a free market, and make !
the prompt adjustments required Dy
eyer-chansing commercial conditions,
and you will place handicap on the
shippers of this country that will para
I'VE them in their efforts to handle
very large number OF transactions.
Careful reasoning from q correct view
point will convince shippers that this
is true. It is easy to make the mis-
take of transferring the rate-maklng
power to a governmental agency, but
it will be exceedingly difficult to cor
rect the mistake after experience has
compelled the people to realize lts
disadvantages. This rate-making prop.
lem is similar in many respects to the
proposition for the free and unlimited
coinage of silver and gold at the ratio
of 16 to l. It would have been easy
to have enacted such a law. Once en-
acted, it would have promptly put the
commercial AID financial operations
Of the people of this country upon
silver basis. The resulting disaster
would have been terrific, and it would
have taken a hundred years to secure
the repeal Of the unwise legislation,
the substitution therefor OF correct
laws and a recovery from the damage (
done. Believing this, as we do, we feel
the need Of stating this case clearly
and frequently. We feel it to be duty
TO do our share in the work OF aiding
to prevent the making of the funda-
mental mistake that will be
made if rate-making is transferred
from the sphere of business operations
to the domain of polrtlcal intrigue and
blind action-Public Policy, Chicago.