The independent. [volume] (Lincoln, Neb.) 1902-1907, 1905-11-02

and cities the commission has shown
the same tendency to look to COM
mercial conditions forming the basis
of the rates complained of as a traffic
official would do. Why, with its add
ed power, should 1t consider them
differently?
European Rates and Ours
The statement so often made by
railway men and more often repeated
that the railway freight rates in the
United States are lower than in any
other country in the world, demands
some consideration. In the first place
there is no reason why they should
passenger rates here should be high
er. In country as sparsely settled
as our own, the amount of produce
to ship is large, where as the number
of persons to transport is small. This
condition is exactly reversed in
Europe. The delser the traffic the
lower the operation cost, and there
should be a naturally lower freight
charge here than in Europe. The first
obstacle, however, in the way of a
satisfactory comparison of rates here
and abroad, is standard of compare
son. l was very careful to inquire
throughout my investigation both of
the traffic officials and shippers their
opinion as to the reliability of the
per ton per mile" standard and the
great majority were convinced that
it was entirely unreliable. The ma
ture of the traffic, whether local or
through shipments, high or low in
classification and many other factors
will affect the per ton per mile" fig
ures without the slightest change in
the rates. 1t is merely an average
upon all the traffic carried, both local
and through freight, carload and less
than carload freight earnings by the
"ton-mileage" without the slightest
regard to rates.
Per Ton Mile Basis Fraud
The per ton per mile rate is then
no satisfactory standard of compari-
son. Again the rates in Europe and
particularly in England include both
the collection and delivery OF the
goods-services which in this coun-
try are rendered by the shipper and
consignee. But more important still,
the railway earnings there are e.
ured upon capitalization ranging from
100000 to 100000 per mile, whereas
in this country the capitalization by
the most conservative estimate is not
over $4,000 a mile. And again al
though as the statistics show the rate
per ton per mile in this country is
about seven to eight mills and in
England about two cents, yet the aver
age haul of freight in the United
States is about 240 miles whereas in
England it is only about twenty -five
miles. And as Mr.. j. H. Call points
out (p Pill of the recent interstate
commerce committee report) the cost
upon all lines of railway in the United
States for twenty-five miles is over
five cents a ton mile, or more than
twice as high as it is in England
when you base it upon the average
English haul.
European Basis of Rates
Again it should be borne in mind
that the bulk of our traffic is raw
materials. about 81 $40 per cent be-
ing the product of the mines, ii Clio
per cent of the forests and $40 per
cent of the fields: the manufactured
or finished product which Il the most
expensive to handle. com. rising but
IA 40 per cent OF the traffic; these
figures are practically reversed in
Europe and therefore any rate per
ton mile figures would give an enron
eous impression when compared TO
such a figure In the United States.