The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1905-06-02
GOVERNMENT RATE MAKING.
Professor Meyer, Of Chicago Claims
it Would be Detrimental to "
the Northwo 81. Sc -.


| Chicago, MAY Enforcement.
| rate-making III the United States
would be an Industrial misfortune for
the western farmer and manufacturer
and serious restriction of the
wholesale jobbing business of the
great western Cities" Said Professor
Hugo r. Meyer of the University OF
Chicago, today in discussing the re-
suit of government ownership and
regulation abroad.
Professor Meyer is recognized as the
foremist authority in the subject OF
the relation of railways to commerce
and industry in this country. He has
taught economics at Harvard and is
now assistant professor OH that sub
ject Mt the University Of Chicago. He
has just returned from Washington.
where for several days he appeared
| before the Senate Committee on In
terstate Commerce.
| "Onc of the most important ques-
! tons that must be considered in rela-
ton to the proposed legislation to
grant governmental regulation of
| rates to the Interstate Commerce
commission or any other body that
| congress may see fit to create for
! that purpose" said Professor Meyer,
is the condemnation by the Inter
| state Commerce Commission of two
| of the greatest and most beneficent
railway rate practices to be found in
this country, namely, the granting OF
extremely low rates to grain and all
kinds of agricultural products which
are designed for export, and the
granting low rates to commodities
brought into the interior on through,
bills of lading as against commodi-
ties shipped i'll the first instance to
an American port and then reshipped.
This embraces rather widely the gen.
eral subject of ditferentials. Let me
cite first the practice of discrimina-
ton in favor of export trade. 1t is
n very old one and has been OF cnor'
nous benefit to American farmers.
Often the rates upon grain and all
kinds of agricultural products for eX-
the rates for the movement of these
same articles to the Atlantic seaboard
for consumption. Thus the railroads
have been able to reduce their rates
on agricultural commodities with
greater rapidity than they would 9TH
crwise have been. 1t would have
been impossible to make the reduc-
tions extend equally to domestic
trade. for those reductions would not
have increased consumption upon the
| Atlantic seaboard and would have de-
creased the net returns from hand
ling the business.
'Thc low rates made upon our ex-
ports have enabled the American
farmer to compete with Europe, not
ONLY with the farmer of England
| and Russia but with the farmers OF
western and central Europe them
selves. But for this the American
farmer could not have displaced the
western Europe farmer to the extent
to which he has done it.
| 'The produce exchange made this
practice subject of complaint be-
| fore the Interstate Commerce Com
mission. The chambers of commerce
| in Minnesota ana indiana, and
number of state oranges. passed res,
olutions protesting against the de-
cision of the commission condemning
the practice of lower rates on grain
for export. This protest stated that
the western farmers were raising
grain for the purpose of making
| living, that they were not philan-
thropists, and that they did not pro-
pose making the New York elevator
men the bcneficiarics OF their lnbOrs.
Luckily the decision of the Interstate
! Commerce Commission was reversed
by the supreme court. else the value
of western grain would have been re-
duced u number Of cents per bushel.
| "In another case which came before
the commission there was involved the
question of the building up of the
grain export trade from Philadelphia
and Baltimore. 1t was necessary to
induce steamships to come to those
ports because they would not como in
| ballast and they could not get car
goes comprising only those things
which were destined for those ports
under existing conditions. In order
to bring ships to their wtarves. it
was necessary 10 grant percentages to
the steamships upon trade brought
from Europe for import to interior
points. That resulted in practical
reduction of import rates. Freight
| from Liverpool to Chicago could .be
brought in by Philadelphia and Bal
! timore ut no greater rates than those
existing between Liverpool and New
! York. Furthermore, through rates
were established which made it
cheaper to ship on through bills to
Chicago and other western cities than
have the imports pass through the
hands of jobhcrs in New York. This
led to the development Of the great
Wholesale business in the principal
! western cities.
"rhis practice offended the import
| crs OF New York and suit against
the railroads ensucd. The Interstate
Commerce Commission ordered that
the practice be discontinued. The
supreme court ovcrrulcd the decision
| of the commission on question OF
law. the question being that the In
terstatc Commerce Commission had
decided that in interpreting the long
and short haul clauses the commits
sion could not take cognizance of
conditions ABROAD. The court held
that. being confronted by great va
| riety of conflicting interests between
which it was we'll nigh impossible to
hold the balance, in order to solve the
difficulty the Interstate Commercs
Commission had selected one Interest,"