The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-12-11
A PRACTICAL STUDY OF
THE RATE QUESTION

! Whatever evils now exist lin the man.
Sgenlent OF the raiiWAys) none OF them is
( al al commensurate with the harm which
must resnt from bestoWinG the power
( 70 TX rates upon the interstate commerce
( com mission.
Tbs is the conclusion which Professor
hugo X. Meyer draws from twelve years
! stuay OF the working of government con-
/ trol Of railway rates in foreign countries
and OF the decisions or the fn tersCate
commerce commission under the existing
Get TO regulate commerce IN the nlted
states he supports this conclusion IN a
very interesting book of nearly 30 pages.
when the Macmillan company is Just
brinsfng out under the tit!e, Govern
meat Regulation of Railway Rates
1ne tirst quarter Of the book is devoted
TO study OF the workings or govern
meht regulation In &c. many. professor
MeS er explains that enc OF the principal
reasons .eading the Prussian government
10 take over The ownership OF its rail-
ways was tEe complaint OF discrimina-
zion IL favor OF competitive points which
IL ore OF the arguments put forward Tor
cover nment regulation OF rates in this
c9uutfy. In Germany however. the REM
cay has proved 10 be far worse Than the
cure, according 10 Professor Meyer. Ine
conflicts between various producing CEN
ters intent on securing or preserving adj
Nantases IN relation 10 common markets.
hRs tarowR The question OF railway rates
INTO politics, In many instances import
ant legislative measures--Tor example, the
commercial treaty with RlsSia-hSVc been
e5ssi0ns u rates 70 poi!uc&h. powerful
! SECTIONS OF The country.
4 nat the fixing OF rates on q distance
BASIS, winch seems 10 Dc Inevitable IN
SOY eminent regulation, has hampered the
industrial Development OF Germany, Pro-
lessor Meycc. sAows ~ various ways, not
2ply by The fact that all heavy snj bulky
freight i transported by water instead
OF by rciI, end that It IS possible 10 snip
gFSiD economically by rail only 10 miles.
me situation that would preFeH IN the
: United states il grain-gTowiug district
were unable TO market It's crops unless
/ II happened 10 &c within l25 miles OF a
consuming market or upon a uaVigaole
Waterway certainly would not appeal 10
the citizens OF our great wheat ana corn
growing states of the middle west.
IN france, where a system Of state
regulation OF rates is in vogue. Profess
sor Meyer finds that the railways are far
behind those Of the United States in
meeting the demands of trade; rates are
maintained at 4 htgn level through the
governments fear of a 6iminution OF its
revenue from canal tolls if rail rates We're
reduced, ana competition Is regulated by
canal boats OF 80 tons capacity.
similar story is traced through the
government regulation of rates in Aus
tria-IiungaTy. the Danubian provinces
and Russia Legislation OF this sort
everywhere has resulted in maintaining
an undUly high level of freight rates. in
preventing the development of technical
efficiency TO a point comparing at all
faYorabiy with the standard prevailing IN
America, and in shutting off from i'm
portapt markets all but the most advan-
tageOusly located producing regions.
Turning to the other side OF the world,
the author finds that in Australia the
system or government regulation has cen
uaiizcd trade 10 a remarkable degree in
the three large cities of the country. in
stead OF developing the trade OF every
section as has been the case in this
country. Although IN rates OF traRspor-
tation are high, the operation of the
roads shows a yearly deficit, and the
systems of the different provinces are
administered chiefly with regard to the
trade interests Of the principal cities of
those provinces which exercise political
control.
After reviewing the course of govern
ment regulation abroad, Professor Meyer
takes up the question in relation TO the
United States. In an interesting review
of the decisions of the interstate com
merce commission he shows that these
decisions, If they had been enforced,
would have brought about results sim
liar 10 those found abroad. Only the linn
ttattOns of the law and It's strict inter
probation by the supreme court have pre-
vented the serious Tetardation of trade
in the past
In contrasting the railroad situation as
It exists in Europe and on this side of
the Atlantic, Professor Meyer SAYS:
In Europe those who are hurt by
progress get the rates under government
conLfOl ADJUSTED IN the direction or I'M
peding the general development of the
community. Here there is eternal vigi-
lance, ceaseless effort, on the part of
hundreds of traffic managers with free
hand, directed TO making things move on
Ito developing the traffic, 10 causing
two blades Of grass to grow where one
grew before. There the effort is Just as
constantly made by centralized rate
making authority to meet the predom-
nent political pull; to protect vested in
tercsts, TO keep things in the status quo.
Europe maTvels at the stupendous
growth of the United States. We take
II for granted; and,-being badly advised,
biindlY propose national legislation on
the European model"
Whether or not one agrees with Pro-
fessoT Meyer TN all of his conclusions, il
cannot be denied that his study of the
subject has been careful and comprehen-
sive, that its results are presented in
vigorous and readily understood Ian
guage, and that 1t is a most important
contribution TO the discussion OF rate
regulation. The book should be read not
only by every cOngres sman who will be
called upon, TO vote on a rate bill this
winter, but by every man who presunes
20 have an Intelligent opinion on the inn
portant question of government rate
regulation.