Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1905-03-30
Abileuo', Railroad InvOatigation,

The determination OF the Abilene
commercial club to do q little investi-
eating Of the railroads on Its own 40
count 10 entirely commendable. For
years 1t has been talked that other
towns received better rates than this
one and it is time to determine the
facts In the matter. The complaint
OF Abilene merchautsiS that the farm
ers who should trade here do not do 90
because the dealers here cannot pay
as good prices for grain sS comPeti'
tive points. The custom Of giving
rebates is largely responsible and II
other towns get them 1t is Abilene's
business to roar.
The farmer is under no delusion
when he says that be is the great suf-
ierer by railroad rebates. % the case
Of bis shipment, the rate comes out
OF his selling price. He cannot take
1t out Of the buyer, because he sells
in the worlds market. He, gets no
rebate. II the big shipper gets his
freight carried too law, the railroad
must make it up out OF the farmer.
American railroad rates are not too
high on the whole. They are the
lowest in the world. The railroads
as whole do not earn fair dividends
on their cost, II you take into account
money sunk before dividends begun,
as we'll as "watered" stock. Rates
are too high in spots and"too low in
spots, and rebates are generally to
blame for the inequality. The effect
OF rebates, however, temporary and
secret, is to drive down all competi.
tive rates. When they are found out,
as they are sure to be, the law or
public opinion comes in and demands
equalization.
This is almost invariably;made by
reducing the general level, instead Of
raising the cut rate. Q This. process
has been going on all over the coun-
try, at competitive points, till the
general level Of rates is the lowest on
earth. Is it any wonder that roads
struggle to keep up the non-comPeti'
tive rates that bear so hard on the
larmerP The instinct that makes
him fight the rebate is sound. But
he cannot reach it by fighting the
railroad.
Who is to blame for rebatesP Ev-
erybody understands that there are
two parties to them, as there are two
parties to bride. The.railroad men
say that there is thirdlparty; the
government, which will not let the
railroads combine to resist big ship
pers who hold them up for rebates.
1t Is worth while for the farmer to
look into this and see II he cannot &c
relief by inducing the government to
change its policy.
The railroads say that they suffer
more by rebates than anybody else
1t is easy to see that they suffer great
ly. They lose revenue, their business
is demoralized and they incur public
odium. They say they could put an
end to rebates IL they had the power
to pool, SO that big shippers could
not destroy their traffic in detail BY
concentrating on one after another to
punish 1t for refusing illegal rebates.
They say that they want the power to
combine, not to raise rates, but to |
prevent big shippers from forcing |
them down at the cost OF small ship |
pers. II they we're compelled to pool
under strict government supervision,
they could be held to their word.
Kansas is doing Its share In putting
a stop to rebating, making it under
the new railroad law q punishable
offense. The Abilene commercial
club has plenty Of material with
which to work and means business.