The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-05-19

lines had formed through routes that
were mutually competitive between
New York. Philadelphia and BaIti-
more on the east and Chicago and 81
Louis On the west. Restraining leg
islation had begun with the passage
OF the granger laws in 1873, but these
in large measure were repealed with
In the next four or Ave years
First Rate Structures.
The score OF years succeeding the
civil war were the formative period OF
the rate structures under which the
traffic OF the different sections of the
country still moves. The characters
tics Of these rate structures have OF
themselves been the cause Of great
deal of criticism which has arisen in
large part from a lack OF understand
Ing. Claims OF different cities upon
the peculiar support of the railroads
respectively serving them had iost
much of their force because the trunk
lines had found 1t necessary in their
own protection to extend their rails
in order to share In the traffic OF COM
petitive cities. The railroads built In
the peculiar interest of Baltimore and
Philadelphia had been forced to seek
for the traffic to and from that city.
Companies that had previously had
their eastern terminus at either Chica-
go or st. Louis came into control or
lines extending from both cities. ana
each of these companies tended TO Sc
cure lines to each of the prominent
Missouri river crossings. The, extern
sion of the railway systems through
out the country brought products OF
{ tErat4 tn N
increasing number of markets and ex-
tended the area in which different
wholesale centers competed for the
distribution of their wares. The rate
adjustments necessary to effect this
end were moulded by varying eondi--
tons attaining what to a superficial
consideration seemed an unjustiflable
lack of symmetry and regularity.
Rate structures and traffic practices
had developed under stress. and us
ually along the lines of least resistance
toward adjustment to traffic needs
AS always, practice. had preceded sci
ence.
Peoples ont Understand.
It was a long time before the peo-
pie in general came to understand the
prices of the other? If the rates of
the one are to be limited in order that
necessity for classification, for charg-
Ing a greater rate per ton on some
kinds of traffic than on others The
economic justice that under certain
conditions underlies the lesser charge
for the long than for the short haul Is
not generally understood even at TINS
time. although pointed out by rail-
way economists and upheld by the Su-
preme Court Of the United States.
| Various papers written by Albert
49, ta OLE mn the minds oil
many as to the impossibility of basing
rates upon the cost of service, and
RAILROAD Transportations." by Ar
thur r Hadley. published in 1885, was
Invaluable in helping to distinguish
between the just and the unjust in
many apparent anomalies of rate ad-
I tustment With the enactment OF the
| interstate commerce law began Pc
/ Rod during which the procedure OF
| the interstate commerce commission
/ the decisions of the courts and both
I academic and popular discussion have
/ slowly been leading TO general enlight-
eminent.
! It is hardly an exaggeration to say
| that il In the desire of the weak for
protection against the strong that has
underlaid all the clamor against the
! railroads AT the same time that
strength. skill, foresight. wisdom and
perseverance should be protected III
/ the rewards that accrue to these quail
/ tiles is essential to the progress OF
! civilization.
Very few even of railroad managers
deny that il is advisable that there
should he a tribunal for the ADJUST
ment of differences between the rail-
roads and the shippers. The inter-
state commerce commission Is such
| tribunal Its powers have been so
augmented that 1T now has very near
! " the final word as to what shall be
I the rates Of freight on interstate traf-
( fic. and the recent decisions OF Judge
Sanborn In the Minnesota rate case
tend to give it control over intrastate
| rates to the extent that they affect in
/ terstate traffic
! Seemed to Show Fayors.
| 1t has at times seemed to the rail-
/ roads that the commission, instead OF
| being tribunal in all that the term
applies, has considered itself as the
/ representative of the shippers in tneif
controversies with the railroads. Thai
this 10 not true is evidenced by the fact
that approximately one-haf OF the