Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1907-07-02
JOINT RATES
EXPL AINED

Des Moines, July Holding that
the final satisfactory adjustment of
the joint freight rate bill means much
more to the people and consumers
than does the adoption of the two-cent
rare, one of the committee of five
representing the Iowa State Manufac-
turers' association who were largely
instrumental in winning the victory,
IN an interview this morning gave {,
brief sketch of what the measure real
ly means.
"In any manner that the freight
rates can be legitimately reduced the
people at large are the direct reel
pients of the benefits" n he
said. Few people stop to realize it,
but the consumers always pay the
freight. The price they pay for any
article, be it food, clothing or machin-
cry, includes the freight on that com
modify.
"On account of the previous high
freight rates the people of Iowa were
unable to receive as favorable treat
ment in this manner, as those of many
other states. 1t will also be a great
benefit to jobbers and shippers.
by the adoption of the joint rate,
the jobbers will now be able to get
out on more railroad lines; lines that
they were heretofore excluded from
on account Of the high rates. This IS
particularly true of cities and towns
the size of Ottumwa and smaller
those having few railroad lines.
"Of course, in way the new rates
will work both ways. While 1t allows
a larger territory to Ottumwa houses,
at the same time, 1t will permit other
jobbers to get in on some Ottumwa
territory and thereby increase the com
petition materially For this reason,
some interests believe that they were
better off as it was previously, but
generally speaking, the majority Of
manufacturers and shippers feel that
they are greatly benefited by the ap-
plication of Joint rates"
What Joint Rates Mean.
He then explained in few
words what the application of the
joint freight rates really meant. The
question is one thta few people, other
than jobbers and shippers, are fami-
liarly acquainted with and but COM
parative small number of people UNI
derstand the manipulation Of freight
tariffs.
'Take, just for example, the rates
between Ottumwa and Marshalltown
We would ship by the Rock Island to
Oskaloosa and from there over the
Iowa Central, two different roads. In
stead Of paying rate computed from
the total mileage between Ottumwa
and Marshalltown, we have hereto
fore paid rate computed from the
mileage first from here to Oskaloosa
and then another rate between Oska-
loosa and Marshalltown. This has
made higher rate than the total
freight wolpd be on the same com
modify shipped on the same road dis
lance equal to that between here and
Marshalltown Now, by the joint rates,
instead of paying two separate rates,
the freight charges between Ottumwa
and Oskaloosa and Oskaloosa and
Marshalltown are combined and the
shippers pay 80 per cent Of that COM
bined rate, thereby saving one-f1fth of
the former charges. This same in
stance applies to any number of roads
which we may have to ship over in
order to reach our destination. The
total rates are combined and we pay
| four-fifths Of that as our rate,
Now on longer hauls, it was found
| that in some cases the 80 per cent
would be less than the straight rate
Of the same distance on one line. In
| such cases a compromise has been
reached between the association and
| the railroads, that the distance tariff
shall be the minimum charge. This
protects the railroads and at the same
time all shippers and jobbers are bene-
fitted on the shorter hauls, where the
charges are higher proportionately
than on the longer trips, where the
distance tariff applies"
/
| ala j