The sun., 1910-06-12
The Long Haul and the short Haul.

One ot the grievances aga nst the rail-
roads that found expression In the orig
inal interstate commerce Law turned up
again al this session of Congress. Re-
hates. midnight tariffs and such are in
oblivion. but the prartiCe Of charging a
loWer'rate 20 a further point than 10 an
intermediate point does not meet with
liberation: that IS. not nv those who live
az the Intermediate point.
While the original interstate com
merCe law was being formulated il was
endeavored 10 prohibit this practice
absolutely, bur when II was pointed ont
that the practice pemeated the rate
structures that had been developed to
meet the needs Of commerce in different
parts Of the country the charge Of a
lower rate for long than for a
shorter haul was forbidden under sub
stantially similar circumstances and
the Interstate Commerce Commission
was bombarded with kilograms asking
its ruling a. 10 the continuance Of the
practice in various parts Of the coun-
try, especially in the South and in the
far West. II allowed the rates then
existing 10 he continued until specific
complaint was made. Subsequently the
supreme Court decreed that the rail-
roads were TO be the judge in the first
instance Of dissimilarity Of circum-
stances and conditions sufficient to JUS
tify the lower charge for the long haul
The status has continued without a
great deal Of complaint except from the
Rocky Mountain region, to which the
rates from the far East are higher than
O. the Pacific coast. in many cases being
made BY adding the low rate 10 a Pacific
coast port to the local rate from that
port 10 an intermediate point. That
Is, the railroads charge for carrying IN
an intermediate station as much more
than 10 a further station a. the rate
from that further station back N the
intermediate station
This practice on rs face is unjust II
IL the claim of the railroads that COM
reJtion of the water routes by way Of
Panama and Tehuantepec compels the
lower rates 10 the Pacific coast ports. /
that 10 long as these rates Weld revenue
that more than paws the bare expenses |
for hauling the traffic they arc justified
in taking the traffic which they would |.
not otherwise obtain. although the rove 7.
nue. Is not adequate 10 contribute a full
proportion 10 the expenses for mainte- !
nance and to the fixed charges The I
railroads ssy that It they did not take
this traffic the entire expense Of the road +
would have ~ be- met by the intcrmedi- /
ate traffic. which therefore would have .
10 bear rates m excess even Oi the rates /
charged They furthermore sav that
the charge 70 an Intermediate point of
the rate 10 a porf on the coast plus the .
local rate back from the coast gives the
intermediate point the full benefit NJ the
water competition. that is. that the rate
u what the intermediate point would
have u pay we're there no railroad from
the Fast. but oHly a railroad from the
Pacific coast back 70 that point.
The justice of this general principle is
main tanned by railroad economists. II
hasno' only been upheld by the supreme
Z tOurt, but II has also been extended hy ]
that body ~ a. 70 apply 70 competition
II one railroad with another. Of longer
line with a shorter line. The specific
application Of the principle depends
upon the inherent reasonAbleness ~ the
rates charged 10 the intermediate points.
and these are under the jurisdiction Of
the Interstate Commerce Commission
This has all been SAID m often that rene
tition here would be trite were il not for
the fact that Senators Of the United
states in the recent debate have ignored
It entirely.
AsSpokane, Salt Lake Reno and other
cities Of the Rocky Mountain region have q
increased In population il has naturally
been the desire n their wholesale NOR d
chants 10 extend their markets for the
received in large qtIanr- '
ties from the Fast. They feel that they . .
are hampered in doing this by the lower !
rates 10 Tho Pacific coast ports. which /,
enable the wholesale merchants of those
ports 70 make sales IN the interior. SEN Q
aiors and Representatives n the Rocky v
Mountain region therefore condemn the y
nrec mt long and short haul status. vvi,iIe D
their colleagues from the Pacific coast ,
uphold II
These Senator's and Representatives
do not recognize the fart thai products
Of their districts. meats and grain e,
fruits and Vegetables. are marketable D
'ver great distances by means Of the Il
Application Of lower rate for rhe long o.
'han for tho short haul; that werc h b
not Tor such adjustment their markets o.
would be greatly restricted. the prices =
reoeived by producers diminished and .
'neir capacity FOR production conse- !.
Hu - #sTg 4