New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-13
DIFFERENTIAL RATES.
CHIEF RAILROAD EVIL.
practices Which President Roosevelt
Seeks to PreC6nt.
[Erow THE rRrnuxE RuREAu.I

Commerce remark as peCullaT the lat Ilio'L a.
most none Of the advocates Of federal super
vision OF rates have come out into the open to
declare against that form of discrimination
which in private discussion OF the subject. they
insist constitutes one OF the gravest evils ana
most glaring injustices Of the present system.
That is the discrimination in rates between diff
ferent points on a single railroad or system.
This discrimination if not actually warranted
by law. has never been prohibited by legislation
IS openly practised, and apparently sanctioned
by the Interstate Commerce Commission and
the courts These ''dferentais'' take the form
of rates lower than the average made for the
purpose Of building UP particular town,
branch line the industries in particular To-
oality. etc. the latter form Of discrimination
coming under what is known as the milling in
transit rate" whereby material is trans
ported the mill or factory transformed into
the finished product and reshipped to the sea
board or other terminus at a special rate for
the entire haul.
In addition to the special milling and locality
rates. there is the long mooted question of the
'long and short haul It is the custom Of rail
roads entering a common terminal to make
rate for the through haul materially less than
the proportionate rate TO way stations and to
such an extent is this the practice that in sew
eraI. perhaps numerous. instances it pays mer-
chants and others at a way station to have
their goods shipped TO the terminus and then
Teshipped to the way station, the combined rate
proving less than the rate from the original
point Of shipment to the way station
1t IS remarked by railroad men now in Wash
1ngton that these Determinations are distinct
crom the rebates OF which much is heard, and
which the railway would be only too glad
10 see enectually eliminated From private con-
Tersation with those who earnestly advocate
railroad rate legislation. however. it is learned
that fbeSa 0Fte of
form the real cause Of dissatisfaction with the
railroads.
THE RAILROADS SIDE OF IT.
Railroad men admit these differentals
allowed. and loudly proclaim their right to make
them. They submit that in doing they are
merely following the dictates Of good business
that they are. for instance, seeking TO build up
a branch line which, without at least temporary
advantages in tho way of special rates, would
never become profitable; that having. in some
instances received special concessions from a
particular town. they entirely within their
rights in seeking to reciprocate by building up
the milling and manufacturing interests of that
town. etc. With regard to the long and short
haul proposition, they contend that where there
IS competition they are compelled to make low
rates or lose their share Of the business They
even assert that they occasionally take through
business at loss, and they declare that were
they compelled to make proportionate rate to
all way stations they would go into bankruptcy
They insist that they are the administrators of
private property and the trustees of the owners
the stockholders, and that, were they to fail to
exercise those business instincts which indicate
where the greatest profits can be made and the
largest dividends paid. they would be false the
trust imposed on them by the real owners Of the
roads.
They further argue that. in the case Of the |
terminal which enjoys low rates because of the |
presence Of competing lines the citizens Of those
towns have usually acquired an equity by bond
ing their county. granting special concessions,
etc. which entities them 70 the lower rates. and
that any law which forfeited the special privi-
Ieges these citizens now enjoy would work in
justice TO the citizens well as to the railroads.
Some Of the railroad men who discuss this
subject are prone. moreover, to set lp a straw
man and then dernolish 1t in the most approved
1iu Jitsu fashion They persist in confounding
the demand for proportionate rates 10 all points
on given road with demand for a uniform
rate per mile. Having placed the public in the
position Of demanding such uniform rates they
proceed to demonstrate how ridiculous this de-
mand is. in view Of the fact that the cost Of
maintaining railroad and of hauling the trains
varies with various localities the physical char
acter OF the country traversed, the cost of fuel
etc.
IN conclusion, most of the railroad men de-
clare that, after ALL the railroads are nrivatA
property in which thousands of people have in
vested their capital and that it is none of tho
pubics business what methods the managers
Deem IL wise TO pursue in their efforts to make
such investments profitable although tbeZ aro
quick 70 agree 10 the proposition that there
should be no granting Of rebates which of |
course olmlnlsh the profits of the roads
WHY LEGISLATION IS DEMANDED
Opposed 10 the railway men are the neonIe
who now demand railway rate legislation and
who at least IN private. do not hesitate to point
out the evils of the system above outlined !
They are ready TO cite numerous instances !
where the discrimination Of q railroad against
q particular town and in favor of another bas
ruined the one at the expense of the other In
some instances they allege that the railroad
ornclaIs themselves profted by such discrimina /
'4oHs, having invested heavily in real estate in
The favored city but the ma oritv 1,bila ~
putting inherently improner ,,7o+i,,ar -
Ta1lroaos' insist that such power ,-osted 4. mo
I!lulFloual or corporation is intoera HE
atlo contrary to justice and that annie tJ,
Justice has resulted. e'e9I III
. Inc opponents of the system declare thar q
- an cpE1ous fact that Il the railroade - ~
through freight at cost or at a Ioee II 80
Terence must be made IN nv tba ett, me IN
cohslgneeS at way stations which 81 RS anu
1est lnJusilce and must seriously hammer the az
1Ot Z OF lhe townsrnen to build nm tteir -,
u1es. must curtail the profits Of rba f.L
.tIld other large shppers-in brief thar fba IT,
1ens aiois me road are placed at an unfair and
serious disadvantage as compa red vim +tai
more fortunate neighbors at terminals ,,he -
competition exists ii"'s where
:. prominent railroad man. when asked why
IN ms opinion there was not more sneofe. 80
paint regarding these Determinations ratbnr
Ian d general demand that the Interstate Com
meTce Commission be empowered IN A. In
q dH1rF