Albuquerque morning journal., 1910-12-26

| line The length OF different rail-
ways between the same points vary
The lengths OF some of the railways
between Kansas City and Chicago are
| as follows: Santa Fe, 45S miles. AL
ton, 4S2; Burlington. 4Sa; st. Paul.
5U6; Rock island, 5l7; Great West
ern, 593. The extreme difference be-
tween these lengths is 1856 miles. The
valuations of these railways would
differ widely. on the basis of these
valuations alone il would be decided
that some of the roads could make
much lower rates than others. But
they must make the same rates, or
the one making the lowest rates
would get all the business. The high
est rate that traffic on any road Will
bear is the lowest rate made on the
same commodities by any competing
road. III these roads were all owned
by the same company the rates could
be so adjusted on the basis OF their
aggregate valuation as to yield only
the current rate Of interest, and no
one would be much hurt: what was
lost ON one line would be made up
on another but, as they are owned
by different companies. regulation of
their rates So as TO restrict those hav-
ing the shortest mileage and enjoying
the greatest prosperity to a reason
able return would make 1t impos-
sible for the others to earn anything
like reasonable return, or perhaps
any profit at all.
Still another respect in which most
public utilities differ from the rail-
ways is that their earnings do not
fluctuate much from year TO year,
while those of the railways do. Peo-
Pile ride on street cars and buy as
much water In bad times as in good
times In the year Immediately fol-
lowing the panic of 1897 the street
railways Of the United states actually
increased their aggregate earnings,
while the aggregate earnings of the
railways of the United States de-
creased in the calendar year 1908
about $500, 100000.
1t is therefore practicable to fix
rates for most public utilities which
can be counted on, without change,
to WELD a Reasonable return" in bad
years as well as good years But
owing TO the great fluctuations in the
traffic of the railways, If valuation
OF them were made and then the
rates were so fixed as 20 yield a rea-
sonable return in good years, they
would be unable to earn reasonable
return in bad years. 1t may be re-
be allowed to raise their rates in bad
years. But that would be imprac-
ticable, because traffic cannot bear
as high rates in bad years as IL can
in good years.
Valuations Of the railways as
whole would help to settle the ques-
ton whether, as @ whole, they are
overeapitalized or are earning ex-
cessive profits. This would throw
some light on whether. their rates. as
q whole, are too high or too low. But
when the practical work of determin-
ing what shall be the rates on the
same commodity to different points,
and what shall be the rates on differ
ent commodities, is to be done, the
main criterion which ought to be and
must be used, If commerce Is to be
permitted to continue to move freely,
is what the traffic will bear" and
this regardless of whether the rates
are to be made by railway traffic
men or government commissions.
This does not mean that all that
the traffic can bear should be
charged, but merely that the rates on
different commodities and for differ
ent hauls should be adjusted in pro-
portion TO what the different kinds
of traffic will bear.
There are many VINO coHtehu llldt
rates should be based entirely on dis
tance. Distance rate-making mas
been tried more consistently ana
thoroughly in the state of Iowa than
anywhere else in this country, and II
is significant that in its last annual
report, which has just been filed with
the governor, the Iowa state railroad
commission condemns this method OF
making and says: 1t Is the
opinion of this board that If the rig
iditv of the Iowa distance tariff could
be Iessened to some extent, and 1t
was given flexibilty at the discretion
of the board, in many instances in
dustris could be fostered in this state
which would tend greatly to upbuild
1t without any injury whatever to
those that already exist or to the peo-
ple of Iowa"