Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-12-02
COMMUNICATION.
THE RAILROAD RATES.

4 -ta0 LIE h.tlllNotAD 51N3AIlss9
In behalf Of the railroads Mr.. Reeves
has shown that there may be differ
| ences in rates without discrimination
and without injustice.
This much being admitted rs a
| general proposition, Is does not fol-
4 low that the railroads can therefore
make such determinations or differ
| ences as may suit their own inclina-
| lions merely. The question Is, in
| every case, whether such differences
| in rates are both reasonable and nee
| cessary.
! All OF MI. Reeves reasoning on this
| point Is general and not specific. He
urges with truth that the railroad
| is a business concern. governed and
affected by the same contingencies
and the same business principles that
| govern and affect any other business
| concern and that one of these Is the
law of average. Then he says: There
is business which it must accept, il
1t accepts it at all on the basis of
low rate of profit. 1t may, in connec-
ton With other business. and consi-
derins that Il certain large portion
OF fixed expense must be met whether
the cheap business is accepted or not,
yield a small return. 1t Is not Ill it
self Il loss. else 1t would not, know
inely, be done. but the net result,
We're the price at which 1t is perform
ed made the measure of all business
would be loss. Were that condition
imposed the cheap business would be
surrendered. Surplus transporta-
ton would go to waste, to the benefit
OF nobody. but to the distinct harm OF
the carrier, and also of the industries
dependent on the carrier for an out
let to competitive markets.
Now, every proposition herein stat
nl bp the railroads have
not thereby proved that there is un-
just or unnecessary discrimination be-
tween the prices for freight charged
to different places and individuals
For example, we read i'll today's local
news columns that the case of the
United States against the Union Paci-
f1c Coal company; the Oregon snort
Line Railroad company: w. J. Moore,
manager Of the Union Pacific Coal
company, and Edward Buckingham, |
former tariff manager of the oregon |
Short Line Railroad company, Is TO
be begun at once in the federal court.
1t may be recalled that these var
ious corporations and officers were
indicted by the Uuited States grand
jury after the investigation made by
the interstate commerce cominlslol,
charging them with conspiracy against
d. J. sharp, former retail coai
dealer. Sharp was called by inc
lUlSTS luIS commence .Aoiili'ii'l'i'
testify MIR. Sharp alleges the Oregon
Short Line Railroad company con-
spjred to force him out Of business
because he refused to advance the
price OF coal so cents per ton when
ordered to do so by the Union racine
Coal company. Then, he says, lhc
coal company from which he receiN-
ed his supply refused to fill any more
orders for him, and he closed down
his business.
Now, although it may be perfectly
lust to charge different freight rate
at different times or under other CON
ditions for the same amount Of freight
does not follow that the action OF the
railroad in this, or any other actual
case was therefore fair and equitable.
Similarly, the eastern dispatches
report a case hearing upon the ques-
ton raised by Mr.. Reeves In the
course of the Standard Oil investlga-
ton, Mr.. Archbold stated on Monday
that the amount of Illuminating OF
sold abroad by that company was e5
per cent and the amount sold IN
this country was 81 per cent of It's
total sales. But it has been COM
planned that this oil Is sold ABROAD
at from seven to nine cents per gallon
If this is actually the fact, then the
oil company can hardly MAINTAIN that |
it merely exports its surplus pro-
duct" In this case the export trade
is the principal business, and 1t must
yield fair profits or it could not ne
carried on SO extensively.
The case with railroad rates is
precisely similar. II the rate to san
Francisco ito meet water compeu-
ton" turns out to be the great bulk
OF the freight business as compared
with the freight business of Salt Lake
City. to which higher rate is charg-
ed. then the general proposition in
voked by Nh. Reeves does not amply |
voked by Mr.. Reeves does not apply,
by the nearer market and
shipping only the surplus to more
one at lower rate.