The Washington times., 1907-08-11
Against Common Control
Of Parallel Railroads
By BLOCK SIGNAL

By BLOC
Referring further to prominent West
ern opinion concerning railway consoh-
dation. 1 find sentiment generally is TO
the effect that it win only be a practical
ard wise course 70 try 10 prevent owner
ship OF well-dehned parallel lines by
the same interests. To be more definite,
the idea is that II the Santa Fe and
Southern Pacific or the Union Pacific
and Denver and Rio Grande systems
were under the Same control and dom
mated by the same influence. separation
would be easily shown as necessary, and
| along lines OF public policy.
II does not seem possible to forbid
the same men 10 hold some stock of all
of these companies. but public policy
and the best interests of the majority
may forbid the controlling interest being
the same in any two of them. The in
/ reference with any consolidation that
makes a through line by the absorption
of Connections for a continuous route. is
regarded as unlikely when passed upon
! by the Supreme Court, unless there can
be shown some portion as dangerously
parallel in its business relations.
Henry Clews' Plan.
Henry Clews' suggestion Of a Govern
ment director in each interstate road
has some adherents. but It has not
eliclted much enthusiasm. Government
directors in the past have not changed
the current OF affairs much. and now as
the Interstate Commerce Commission
has largely increased authority such a
representation seems unnecessary. I'm
! less director were a practical railroad
man, his services would be OF 10 value.
and very few men who are suitable are
| available.
| Politicians should not be rewarded by
| such appointments. II the Government
| admOnishes the railways 70 eschew polI-
| ufs. II IS only fair to discriminate
| against politicians as a class in the rail-
way business.
Meridian Rate Theory.
! rather new idea has been launched
OF late for the basing and grading of
rates along meridian lines. It dove
tails with the idea the writer advanced
some years since about Reograpbical
trade limits The exponent Of the meri-
dian theory believes that It means re-
ducing competition as to cost OF pro-
ducuon and eliminates carrying charges
as a factor. In other words. when the
manufacturer is out Of the market by
reason OF distance from the consumer.
4 he must relinquish the business or bv
superior goods or lower cost Of produc-
Ton hold his patronage. He must OF
arr-v-
nnG not force the carrier to hold his
trade at the expense Of his competitor s
location. 1t may be a matter of some
new detail to work out this basis al
though the position IS sound and in
time will prevail.
Missouri River Grain Rates.
J. Nj. Johnson. assistant traffic diroo-
tor Of the Missouri Pacific lines In Chi
cago. recently addressed the Interstate
| Commerce Commission covering Pro
portional Rates From the Missouri
River On Grain" have been handed
a copy Of his address, and regard The
paper of much public interest. His ar
gument was brought out after a ruling
based upon the so-called &C. B. & O."
sugar caSe. He regards the two situa-
tlons as entirely dissimilar In compari-
son.
The presentation is considered by
able traffic men as remarkably clear
and convincing. He explains that mer-
chandise rates are practically made
through the Missouri river gateway or
locals. but that 1t would be manIfestly
unfair to make rates the same way OF
live stock and grain-products Of the
farms After showing the dangers OF
manipulation of rates, basinE on per
oentage proportions, he concludes as
follows:
Thus we have endeavored 70 show
that a fixed rate east Of the Missouri
river, Independent OF all other rate fac
tors entering into the movement should
be applied indiscriminately We do not
see how we can nave more tran one
legal rate at a time applying on that
tFaHic-on all grain forwarded from
Missouri river regardless of date and
point OF Origtn-a schedule which espe-
cially states the rates are to be applied
on grain coming from beyond the Mis-
souri, river. and presumably and Infer
entfally on all that class Of grain
handled. II we are to apply some other
rate on part Of The traffic, who - tc
say what rate IS 70 be applied? Shall
the old rate be applied indiscriminately
on all expense bills bearing date pre-
vious tC July 1? That IS what It really
means, does It not? We believe yom
honorable body will see the injustice Of
this. not only to the carrier. but to Tho
shipper as we'll.
Sees Unfairness in Scheme
The shipper. who IS less fortunat,
than his competitor IN possessing OLE
expense bills. viii. no doubt, puy
higher rate or the same class Of grair
than his competitor pays. The expens,
bill would again become the potent fac
tor, and the old rate would be IN efrec
as long as there is an old expense bill
10 be obtained on the Missouri river
No doubt a very large volume Of tn,
new tonnage would be represented b,
old expense bills and take the old rate
The grain shipper In the interior woulC
have 10 pay the new rate on all OF hi
through shipments after July ]. Will
the Missouri river shipper would avail
himself Of the old rate by substitutin,
old expense bills. No doubt the pric
TO the country dealer would be base,
on the new rate. but in forwarding from
RIM tho -