El Paso herald. (El Paso, Tex.) 1901-1931, 1910-05-06
NEW RATE BILL
WILL BENEFIT
f PASO
President Ripley Says 1t
Will Take Away Advant-
age of Coast Jobbers.

The Taft railroad rate bill is going
to help FL PasO as a jobbing center
in fact, all interior towns will be helped
while it is going TO deal a heavy blow
to the seaports of the country.
E. P. Ripley, general manager of the
Santa Fe, admits this in sounding note
of warning to Los Angeles and San
Francisco. He uses Salt Lake in his
argument as a city that will benefit
under the new bill, to the detriment of
the coast cities. Substitute FL Paso for
Salt Lake in the article, and you have
tho result here.
Railroad freight rates" said Mr..
Ripley, ARE not of nearly as much i'm
portance as believed by the average citi-
zen. If these rates were raised % TO
so percent the ultimate consumer
wouldn't know if the so called experts
hired by the cities to find fault with
the railroads and the newspapers would
keep still.
a pair Of shoes in Los Angeles costs
the user so cents more than in Chicago.
And Of that increased cost about
cents represents the cost of transport
ing the pair of shoes across the CONT
nent. If the jobber or the merchant
imposes tax of so cents on the con-
sumner to pay a 2 cent freight rate that
is not the fault of the railroads.
a nickel for in Denver costs Is cents in
Leadville. And while the track between
Denver and Leadville is probably the
most expensive track to operate any
where it is absurd to charge the tax
of 10 cents on the cigar and the beer
to the freight rate.
Freight Increase Certain.
There will be an increase in freight
rates, not an advance on all rates, but
az adjustment of rates"
Equivalent to q 10 or 25 percent ad-
vance all along the Ine?" asked the
reporter
That's about it, replied the head of
the Santa Fe system
But the Pacific coast is up against
a far bigger proposition than any adj
vance in freight rates. continued Mr..
Ripley.
1T is not so much the rate. be it
low or high. as it is the relative ad-
justment that makes or breaks a COM
merciaI center. If the amendment to
the railroad bill now pending in con-
gress, prohibiting railroads from charg-
ing a higher rate TO an intermediate
point than TO q farther one becomes
law, the Pacific coast cities Will be
wiped off the map as jobbing centers-
The pacific terminal rates are made
under authority Of the long and short
haul clause in the present railroad law.
The SO called insurgents seek to make
the rates the same TO interior points as
to coast points on a strict mileage basis.
Formerly the clause contained a pro-
viso which saved the situation. The
clause prohibited the railroads from
charging a higher rate to an interme
date point than to farther one under
substantially the same circumstances
and condition The purpose of this
clause was to prevent undue favoritism
to any special shippers or localities
The proviso 1 have named has been
construed by the courts to allow a low
rate for longer haul where compe-
tition demands il.
Would Be bad for Coast.
1T is on this authority that the Pa
cific coast terminal rates are made. The
rate from New York to Los Angeles,
by way of example, is lower than the
rate from New York TO Salt Lake City,
in order to meet the water COMPETE
ton by way of the Tehauntepec- The
effect is to allow Los Angeles 10 do a
jobbing business into the interior, be-
cause of its location by tidewater.
Eliminating the words quoted would
make it imossible for the railroads TO !
make Pacific coast terminal rates, and |
the jobbing business of the Pacific |
coast cities would be reduced TO prac- |
tically nothing 1t would spell destruc- |
ton of the jObbing business of the |
Pacific coast.
The railroads would have to reduce |
rates to the interior to the level of the |
rates TO the coast, or advance the rates |
to the coast TO equal the rates to the |
interior. Either way the relative adjust |
ment would be destroyed and the Pacific |
coast would lose its jobbing business |
The special condition that, unuder the |
present law, makes the lower rate to |
The special condition that, under the /
said. water competition. The proposed 1
destroys the right to make |
these rates"
Phone $50 up to o'clock Saturday If