New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-19
ADJUSTS RAILROAD RATES.
DTFFFRENTIALS FIXED.
Controversy Bstreen Atlantic Ports
Decided bg Commerce Commission,


,.. Mos, 1s-The Interstate Com
- c,c~,,nission to-day in long opinion DE
r,or,rrtssionAr Prouty announced its decision III
h 45,rre-an+fal freight rate case, involving inc
sa.boara diTerentials as between New orA'
po.ton philadelphia and Baltimore. the case
mas submitted TO the commission Tor erDl'r"''
by all those interested.
The. finding of the commission Win 'eSpoO.
s,Tereutials on export traffic Is hrst, INA.
5,ee-anttal a hundred pounds below Ne" A0
on Ao,,r. sill rail and lake and rail- shou4u 10
,s,,oas IN Two cents at Baltimore ana one oeN'
obuadejphia; second. that the existing on
1iaI on ex-lake grain from bulI"1o' N.-o
T0o,-,o-t should be reduced to three-tentnS Oh
r,,.,,oI balovv the rate to New-Yorl- and
ha eilovCed both TO Baltimore and Philadelphla'
.,,-5 that otherwise the present export oiIler-
entails should remain in force.
r. o.,eernent OF all concerned domestic
+-oe7o VAS excluded from consideration BOT
that reason. no opinion was expressed coii0eiA-
ing the relative. rates on import tralnc-
Commissioner Clements filed dissenting
ontnfon opposing the fixing Of any dlfIerenIa4s
by the commission in this case
The decision IS regarded by the members u
the commission as OF vast importance as II -
more than thirty years since an adjustment "@'
aocba6 nv which the rates to NewYork were
made the basis or InOSe 10 the ON41~1 - 80
ron having the Newly rate philadelphia a
rate Of two cents a hundred pounds lower than
oCev,-York and Baltimore a rate Of three cents
lowsr. Norfolk and Newport News have hao
The same rates as Baltimore. These diheren-
1isls however have been the subject OF repeated
controversy, and at times demands for their
5tsoontinuance or modification have caused
struggles between rival ports and the lines serv-
ing them, terminating in rate wars.
The proposition TO submit the case to arbitra-
tion first came from the Merchants Association
OF New-Yorl1 City, and was promptly acQnesceo
IN by the Joint committee on maintenance OF
freight differentials. created by comnercial bod
les Of Boston, Philadelphia and Baltimore ana
the nrssidents or traffic officials of the principal
trunk line railways.
COMMISSIONERS PROUTY's OPINION.
In his opinion, Commissioner Prouty says that
the commission has endeavored to find some
fundamental principle by the application OF
which this Dispute might be ended, but entirely
without success.
Taking up the contentious Of the four cities.
the Commissioner declares that If it could prop
eriy be done these ports should all be kept open
for the transaction Of this export business on
such terms that each one may fairly compete
for It. and that no marked advantage should be
given and certainly not by the creation OF ar
tiicial conditions TO any one port over the other.
An ideal condition would be-" says Mr..
Prouty, "the establishment Of suoh rates thar
at either port IN the way Of improve
nent in service or facilities might be rewarded
by increased business and that there might
exist that healthy struggle of locality against
locality which is the best security for proper
commercial development. This is justly de-
manded by the interests Of the communities
involved" He declares that in disposing of this
question the interests of the carriers which
serve these communities should be none the
less kept in view, and suggests that II 1t prop
erly can be done these rates should be so adj
justed that this competitive traffic Will be fairly
distributed among the different lines of rail-
way which serve these ports. Continuing. the
decision says:
The ability Of a railroad Adequately TO dis
charge its duty for reasonable charge depends
upon the business which it can obtain and no
one OF these systems should be deprived Of its
fair portion OF this enormous export traffic The
purpose OF these dineFentials from the first has
9een TO distribute this business among the
different carriers and this is not improper I'M
less the means used are improper.
This traffic, says Commissioner Prontv 3,
point OF fact originates at great number of in r
terror points and reaches numerous foreign das-
tinatons but" he says 1--WE NAV assume 4ou
the purpose Of illustration that It all comes From,
Chicago and all goes to Liverpool It is an
parent that It may be transported between these
points by any Of the four ports in question.
The distance By rail is somewhat shorter 10
Baltimore and Philadelphia than 10 Boston and
Nsw-York On the other hand. the water dis
tsnoe Is somewhat less from Boston ana New
York than from Philadelphia and Baltimore
TIE entire through distance does not greatly
vary. IN other words this traffic Is fairly oona
waEftF IVA