The Topeka state journal., 1905-11-09
WHO PAYS TIE DIFFERENCE.


In his discussion of the railroad rate
problems in NdcC1ure's Magazine, Mr..
Ray Stannard Baker has more nearly
got down to bedrock than any of the
numerous writer's who have discussed
the railroad issue, although all have
contributed more or less to an under
standing OF the matter.
Particularly does Mr.. Baker bring
out the fact that when one shipper. or
community secures an extremely low
rate, II is not only q discrimination
against other shippers and communi-
ties by throwing business to the fav-
ored shipper, but it also compels the
others to pay a rate enough higher to
make up the loss on the favored ship
per's business and give the railroads
their profits besides.
These low rates are not always
made willingly by the railroads. As a
rule railroad company will not do
business at a loss unless by SO doing it
sees an opportunity to develop future
business But in these latter days of
trusts, as MIR. Baker points out, the big
shippers are frequently able to dictate
rates to the railroads. It is an estab-
lished fact that the Standard Oil com
pany years ago in PENNSYLVANIA com
PEELED railroad companies not only to
give it an inside rate. but also to
charge its competitors enough more to
pay it a certain per cent of the rate its
competitors paid.
when the big shipper" says Mr..
Baker, "gets a low rate on oil or steel
or beef, the small shippers and con-
sumers who pay the small freights
have to make it up. If oil is carried
at cost, or below, by the railroads, as
it often has been, then other patrons
of the road must pay enough more to
yield the great profits which the rail-
roads earn. Therefore, you and who
buy food, shoes, hats, houses-against
every item Of which there stands a
freight charge-have paid part toward
the enormous fortunes of the trust
promoters.
ST have gone thus into the subject
Of the trusts to show that the blame
for present conditions of utter injus-
tice and immortality is not due wholly
to the railroad men. The big shipper.
the trust, has forced and is today fore
ing all sorts of changes in rates. He
also is to blame. It was significant
and amusing-to see the railroad bring
in one shipper after another to the re-
cent congressional investigation, to
prove by them that the railroad was
without fault, that everything was all
right, that there was no complaint as
to rebates. OF course, the larger ship
pers stand with the railroads and will
stand with them as long. as they can by
cajoIery or force get favors from the
traffic officials, or as long as they fear
the enmity of the traffic officials.
"Stiu other factors enter into the
problems of rate making. Under pres
ent conditions the railroad president is
a sort of over-lord of his territory. If
his road is to succeed, he knows that
the country through which it operates
must be prosperous. Consequently we
find James J. Hill doing wonders to
develop the far northwest, not because
he loves the northwest-but because a
developed northwest will make his
road pay better dividends. For a time,
he carried lumber at a. loss Con oper-
ation) to help build up his business
but be it remembered, that loss came
not out of Mr.. Hill and his associates,
but out of the other patrons of the
road. who paid higher rates that lum-
Der might be shipped at lower rates.