The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-08-05
American Business, and the Railroads.

American Business ~ the Railroads.
In discussing tendencies of American
railroad development in the August
number of the Atlantic Nopthlv Mr.. RAY
NORRIS SAYS that no man can tell how
Ear the present tendency toward social
iftic corporation control will 60. In
spite of the wide range of the area Of hue
and cry, there is reason for hope that the
movement to regulate the business of
the railroads will stop short of their de-
struction by legislation. Some time be-
fore the collapse is due the lawmakers
in the States and nation may come to
their senses and put on the brakes.
Can a railroad afford to reduce it's pas
senger fare rate TO two cents a mile?
That is a question which mileage, popu-
lation and local industries ought TO an
swer before the enactment Of a maxi
mum rate LAW. II does not follow that
because the New York Central running
through the heart Of a State which con-
tains 5000, 900 people and an immense
number of factories, shops and manu-
featuring plants, besides many thou
sand square miles Of productive farms.
can profitably make a two cent a mile
rate. that the Southern Railway in North
Carolina, a State with its population Of
1000, 900, struggling industries and, more
pine than arabic land, can afford to sell
tickets for two and a quarter cents a
mile. 4 trial of the reduced rate in West
ern and Southern commemorative that
have embodied il in their railroad avs
because certain tinanciers have sinned
against the light, or on the principle Of
follow my leader. will in the course OF
IL is a living rate-that is to say, after
dividends have been passed.
just now railroad managers. however
upright and efficient and faithful they
may be, are suffering for the sins Of the
iugglers Of the Hartman type. These
railroad managers may write and speak
the absolute truth about traffic and
rates. and state the resources Of their
companies in exact terms, but no legis-
lator heeds them. Then the dividend
account will have 10 testify for them.
When local stockholders feel the pinch
The revIlsion against ny Use rate reduc-
tions will come.
In most OF the Western and Southern
States reciprocal demurrage laws have
been enacted or. proposed recently. The
intent Of such legislation is to impose
penalties upon the railroads for with
holding cars from the shipper and at the
same time to penalize shippers and con-
signees for keeping cars beyond a reas-
enable time. At first blush a law Of this
kind promises 10 relieve congestion and
put every available car in circulation.
Put 10 is a serious question whether the
congestion would not become greater u a
result Of the demand for cars that shippers
did not want and by the deliberate hold
ing OF cars in transit TO please a big ship
per who wanted 20 gain an advantage
over the little fellows. On this subject
Mr.. MORRIS says in his article:
AZ tho time Of writing nvs States. Minnesota,
New Jersey. South Dakota, Texas and Washington,
tAye actually passed bills giving opportunity for
DISCRIMINATION perhaps unequallsd since tho.s early
Gays when the standard OH Company collected
rebates from the railroad companies upon It's own
aud It's competitors shipments as we'll"
Reciprocal demurrage, like the make
mum passenger rate, must have its test
to satisfy the regulators, and the divi-
dend account may again have to suffer.
Then there must be experiment with the
plan OF physical valuation as a basis for
rate regulation, an experiment which in
the FIRST stages will compute actual cost OF
construction, perhaps of years before, and