Mexico Missouri message., 1906-03-01
POLICY o. sPEcIAL RArE.
Reductions to Meet Commercial Con-
ditions Develop Railway
Traffic.

The settled policy Of railroads to de-
velop additional traffic by making spe
cial reductions in rates when neces-
sary to meet commercial conditions
and to extend the markets for the par
ticular product has a most salutary
effect upon the welfare of the people
generally, writes Samuel Spencer, in
Railway Rates and Industrial Prog
ress," in Century. Whenever a rail-
road, by means Ut new rate, puts
the commodities produced on its line
into new market previously sup
piled from some other source, bene-
fit is wrought to the producers on that
line by extending their selling mar
kets, and to the consumers in the To-
cality to which the product is thus in
troduced II rates were made on the
theory, so often advocated, of giving
each place the full value of its geo.
graphic situation assuming that the
value could ever be authoritatively
ascertained), the result would be that
markets, both of production and con
sumption, would be narrowed; the pro-
Queer would have fewer markets in
which to sell, and the consumer would
have more restricted field to pur-
chase. For example: Numerous cot
ton mills are located in Georgia and
the Carolinas, which of course com
pete with the older cotton mills To-
Gated in New England. Rates on cot
ton from the southern states to these
mills are so adjusted as to enable all
of them to obtain raw material This,
of course, enhances the competition
for the purchase of cotton. If rates
on cotton were so adjusted as to be
very much higher to the more distant
mills than to the nearer mills, it would
perhaps result that the growers OF
cotton would be virtually confined tC
the nearest mills for their market.
Rates are likewise adjusted from these
mills to the markets for cotton goods.
in order that the mills may dispose
of their product. II these rates were
adjusted primarily with regard to dis
lance, each set of cotton mills would
have large territory in which 1t
could sell cotton goods virtually with
out competition from mills in other
parts of the country.
It is apparent that in many instances
conditions suddenly arise and must
be,very promptly met. No rate ad'
| justment can be established which can
guard against the necessity for sudden
changes in the future. Any serious OBJ
stacle to quick action by the traffic
officers Immediately in touch with the
! local commercial situation will prove
| in many cases an unfortunate embar
rassment to the wholesome develop
ment of commerce. One example may
be added to those already given. Abou,
a year ago numerous blast furnaces in
Virginia were temporarily without an
adequate supply of Virginia iron ore
having been prevented from accumu
lating a sufficient stock by the unusu
ally severe winter If the furnaces
were to be kept in blast they would
aave to be supplied with ore from thu
upper lake mines; this would of neces
sity be carried by rail from the lak'
port, and at the ordinary rate 1t wouI'
have been out of the question. Thu
case demanded and received promp
action, and thereby a large manufac
turing concern was enabled to bridgt
over a period of local ore famine du,
to unusual weather conditions.