Fitzgerald enterprise. (Fitzgerald, Ga.) 1895-1912, 1906-01-09
Tuesday, January 9. 1905. -
competition Forces Railway Rates
Lower at Some Points Than Others


points where the railroad encounters the COM
petition either of carriers by water or other
railroads.
To person unfamiliar with the railway
business, rates to such points 10 many instances
appear to be fantastically unjust when COM
pared With rates to other points where there IS
no ompettion; but not only is there IN almost
everv such case cause for the differenc but
investigation usually shows that the railroads
could not have adopted a different scale OF
chfrges.
little explanation will make this clearer
II the first place, attention must again De a.
cted to the fact that large part OF the ex-
p.nse of a railro ID is fixed and not effected by
the amount of ira fife carried Il; xes and inter-
est on bonds must be paid, and track and equip
ment must be maintained without regard to the
amout of business done. Probably half OF
railroads. expense is of this fixed sort. Bearing
this in mind, let us observe The effect of compe-
titjou on rates in mag mary case described
Z by Mr. Walker D. Hines, former traffic manager
of the Louisville & Nashville r. r, TO the SEN
ate committe.
railroad runs from coal mine through
a number of small towns to a large city hum
dced miles away. BY charging rate OF one
cent ton per mile for carrying carrying coal 10
the small towns, the railroad is just able 10
make both ends meet, so that this rate Is plainly
reasonable. The city at the end OF the road
however, has access by water to another coal
supply and is able to obtain its coal at rate OF
sixty cents per ton The railroad finds by
making the same rate it can haul two hundred
thousand tons of coal to the city. The addition
a cost of doing this business is $4,000 and the
railroad gains $4,000 net profit. result, now
ever, is that while the ter nal city enjoys rate
of sixty cents on coal, consumers at town on
the railroad twenty miles nearer the coal mine,
must pay rate Of eighty cents. The railroad
could not reduce it's local rates SO as to make
them correspond with the rates to the city, be-
cause the loss of revenue from the reduction in
local rates would exceed the gain from the haul
to the city.
If the railroad were compelled to make
choice, it would give up the haul to the city in
preference to making reduction in its local
rates. This would deprive it of needed revenue
and diminish the prosperity of the region which
it serves, without confering any benefit on the
local points, In this case the rate to the city is
not in reality fixed by the free act OF the railway
manager. 1t is prescribed by the operation of
a law OF traQe.
No honest effort to do the right is fruitless,
whatever the apparent results may be.-Cuth-
bert Leader.
A good friend writes us Che came to the
office to tell US but we were out so he wrote it,
that he had heard the suggestion that we had
worn out our lam baster and was holding off to
get new one made It's mistake. friend
called and took it away and promised to return
il as soon as it is thoroughly sterlllzed. 1t
needed disinfecling thoroughly.
Editor Mercer used nearly all the space on
his editorial page yesterday IN explain
ing'' his position the corner saloon question
Now if he will kindly explain his explanation,
the decent citizens, and especially the ladies',
will appreciate The favor.-People.
PRAY tell us what benefit an explanation
that decent citizens" could understand would
be to the People" gang or any of its gutter
snipe contributors?
Hoke Smith is too brave and braiuy to be
dominated by corporate Influences. He can
afford to make fight that would crush little
man. He is also able to pay his way on the
railroads and is in every sense of the word capa-
bic of the leadership which he offers to assume.
IF Won aresincere in wanting reform principles
carried out you will never have the opportunity
L. L. 1o.ch - rdo1o