New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-19
,usted that rival routes can fairly compete
TO MAKE ADVANTAGES EQUAL

TO MAKE ADVANTAGES EQUAL.
Continuing. the commission says that Balti-
more and Philadelphia have natural advantages
in location as Boston and New-York have GER
tain natural advantages in ocean facilities. and
as It is impossible to make and maintain the
same rate through all the ports, "the true in
quiry is to determine what will equalize the adj
vantages Of transportation through these vari-
Gus ports and what part Of the advantage which
Baltimore and Philadelphia enjoy through In
land haul shall they be allowed TO retain to COM
pensate them for their disadvantage in the water
haul"
The opinion points out that the most i'm
portant factor in determining the route is I'M
doubtedIv the rate but that there are other
items to be considered, such insurance,
quicker and more trustworthy service, moro
frequent sailings the ability to reach a greater
number OF ports superior banking facilities and
better storage facilities and that in all these re-
spects New-York Is superior to its competitors.
It is n7anifestly Impossible by any a priori
process Of rea soning the opinion says, to de-
tsrrnine what inland differential will equalize
ell the advantages and disadvantages, and the
best that be done is to examine the effect
of these diRerenttals. Summing up that feature
of the decision, Commissioner Prouty holds
that about the only thing which is made rea-
sonably certain by the statistical tables offered
in evidence is that Boston has distinctly lost
and that Baltimore and especially Philadelphia
have distinctly gained IN exports of -four.
Not having any knowledge to the movement
Of iron and steel articles on which the differ
entails were reduced in 1904 the commission
expresses no opinion as to their propriety.
Dealing with the contention of Boston that If
Philadelphia and Baltimore entitled to a
differential against New-York Bpston is, for the
iFa,o tgoT,
Commissioner Prouty says that ocean rates now
are substantially the same from both these
ports. It is. therefore. possible" he says. that
IN the future 1t may become evident that Boston
cannot fairly compete for this traffic upon the
present basis but We DO not feel that the record
before would justify that inference to-day"
These differentials. it is added, have not been
fully observed for q sufficient length OF time to
indicate exactly what their effect may be when
strictly maintained through series of years.
CONTENTION OF NETWORK DIsAP-
PROVED.
In furnishing a reason why a distinction
should be made in, the amount Of the differential
between the ex-iake traffic and the alLrail
routes, the decision says:
These four cities are seaports. This is a fun
damental advantage Of location which entities
each and every one Of them to participate in
this export business, and the public interest
requires that this right shall be recognized. But
each has certain subsidiary advantages peculiar
to itself which should be preserved in so far as
is compatible with free competition. It may
well be. therefore, that Baltimore should be
given a somewhat more favorable rate all
ran than on rail-and-water traffic, for 1t pos
sesses an advantage in the former case which
1t has not in the latter.
Commissioner Prouty dtsagrees with the con-
tention of New-York that the effect Of these
diferentials is to force traffic out Of natural
channels and TO impose an enormous burden
the public. With respect TO ex-lal1e grain he
holds that "to decree that traffic should move
by the cheapest route would be entirely to
eliminate competition, which, within reasonable
bounds. is for the interest Of the general public"
The decision closes as follows:
This Is not q, proceeding in which the commits
sion could make an order, nor do intend to
intimate that the facts appearing would justify
an order in any proceeding. Our impression is
that the above notifications would be fair to
the various communities and lines of railway
interested, and that it is in the public interest
that these diferentials should be so adjusted
that all the ports and the various lines serving
them may fairly compete for this traffic