Omaha daily bee., 1905-07-09
Preferential Freight Schedules.

pendent" must pay freight rate higher
than the Standard, the cash transaction Is
antiquated-the trust secures the same old
advantage If the railroads do not pay re-
bates to the Independent operators.
Within the past six months these rates
have prevailed simultaneously from the
corn-producing territory to New York:
Rate
Miles. Cents per
hundred.
Council Bluffs to New York. l,400 lS
| Omaha to New York. ......... l,tgO Is
| Dennison to New York;. 1,5l y
| Ogden to New York. Los 5o
! Boone to New York;. lSoz -
These markets are contiguous and the
cost Of transportation to the seaboard not
materially different.
Neither these oil nor grain rates trans
gress the interstate commerce law and they
are all outside the purview of the commits
sion, and yet more gross, manifest unjust
discrimination and unreasonable prefer
ence" would be hard to contrive. II the
| New York Central, Illinois Central and
Union Pacific systems (the so-called Rookie
| Hartman properties) were controlled
| by parties engaged in the distribution Of
oil no other manufacturer could proftably
engage in this business in the Mississippi
valley.
Tariffs should be based on commercial
| principles, taking into account the special
! conditions which bear upon the commercial
value of the service rendered"-resolution
adopted at the international Railway con-
gress, May 1S, 1905. 1 have been unable to
find any man acquainted with the trans
portation business in the middle west who
was willing to say that either of these
tariffs was based on the commercial
value OF the services rendered. or, in
deed, compiled upon any equitable or recog-
| nized principle. The specter Of commits
| sion of lawyers making freight rates is
indeed terrifying, but recourse might be
had to impeachment or removal CT any
public board which exhibited the temerity
to authorize such monstrous discrimination
and preference as these tariffs make mani
fest.
subterfuge of n "Midnight Tariff"
Some four months ago a grain merchant,
who owned large elevator capacity, accumu-
| lated about twenty million bushels OF corn.
When his storehouses were filled a tariff
was filed-accorClng to law-by which the
| expense of transporting the product to
market was reduced cents per bushel
| 1t is charged that the merchant had a
| bargain with the railroad before the grain
was purchased. This is the subterfuge
known to the guild as a midnight tariff"
| by Ibbdlo AlhbiANgt AhANSNAAoA NAaSht tAS-
vator and car allowance), by artificial mar
kets, and such artful lodges as the mid
night tariff" the individual merchant has
been driven out of business and the en-
ploye and the bond and stockholders de-
prived of their just proportions OF the rev.
| enues OF our transportation properties,
These people ask me why 1t would not be
! wise both for the railroads and the public,
to have a commissioners competent as our
| federal courts - determine primarily
| whether a rate is unjust" or affords 'un-
due preference" rather than traffic man
ager who has a personal interest. or owes
his position to director who is perhaps
engaged in the grain, salt or oil business.
I have repeated the question to officers of
other companies. The only reply has taken
the form OF a misleading assault upon the
capability Of the individual members OF the
present commission.
1 have devoted my life to transportation
work. and have invested my money in
transportation securities. 1t is believed
that more than $500, 100000 have since 1887
been Illegally taken from the employees
and security owners Of our railroads by
rebate and other means of buying trade,
and converted to Industrial trusts. The
present conditions promise, not an abate-
ment, but an expansion of methods by
which this diversion may continue. We
face this issue; Is It wise TO have a fed
eral commission authorized to determine
a maximum and minimum freight rate (as
the legislatures now determine the maxi
mum passenger rate), or to have rates
made and natural markets destroyed by
the caprice or the interest of an irrespon-
slble freight agent-appointed perhaps by
the owner OF the trust whose business his
railroad must transport?
Changed Conditions of RaiIrOading.
State maximum passenger fares, national
regulation OF safety devices and conditions
of service, have resulted in mutual ad-
vantage to railroad ana public. The au-
thority to determine, by public commits
sion. a maximum and minimum freight
rate has, we are told, given satisfaction
in England The law in its present form,
administered by such capable and prac-
teal men as Cooley and Walker, has (after
seventeen years. proved inefficient.
The arguments of Mr. Spencer and Mr.
Tuttle represent or reflect the opposition
to the presidents views concerning federal
freight rate legislation; they contend that
the present law-efiiciently administered
AFFORDS ample remedy for transgressions.
The original interstate commerce statute
was conceived when the cash rebate was
the visible evil: the commission has failed
70 indict or convict Mr.. Newman New
York CentraD or Mr.. Fish Qllinois Central
OF felony, Notwithstanding the transgres
sions Of their agents have been known OF
all men," therefore the fun lighting re
sources" OF the law have not been EN-
plOyedi The new neutrality-suspicious. [,
localities ana midnight tarifs-developed I,
accomplish the purpose OF the rebate with
out violating the law, are not made promi
nent by either Mr. Tuttle or Mr.. Spencer
The individual merchant, who is gradual.
disappearing by reason Of the present trans
portation advantages offered his stronge
competitor, and many owners OF these grea
stock companies, would like TO have a al
rect reply to the suggestion, How can thes
/, enormous losses and these inequalities b
prevented except BY sreater publicity an
extended federal supeTvisionG