The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-26
GEN. BLACK DEALS
JOLT TO RAIL men
No Business Peace Until New
Rate Method Is Adopted,
He Says.
PRESENT SYSTEM UNJUST
Chief Engineer Of Army Tells
Traffic Club Cost Basis
Should Be Used.
PRESENT SYSTEM UNJUST

the monthly meeting OF the Traffic Club
of New York at the waldorf-Astorial last
night. Major-Gen. William NJ. Black,
Chief Engineer OF the United States
Army, made many railway men and
others sit up and take notice by declar-
ing that he is convinced railways and
communities will have no business peace
until more reasonable method OF trans
portation charges can be adopted.
He said that the entire system OF
charging what the traffic will bear"
Of making arbitrary differentials, and of
granting water competitive rates is mo
other than a system of unequal taxa
ton, Of making one set Of men, or one
set Of communities. pay for services rem
dered to another set OF men or another
set of communities
Advocates Cost Basis.
Gen. Black featured the idea that
freight rates should be made on a cost
basis" Just as costs are determined in
any other business. The trouble has
been, he said. that the railroad bust
ness has not been conducted in an open
has been a deliberate part of a railway
that 1t shouldn't know costs.
Are not our common carriers simply
agencies of the people granted necessary
powers by the people for certain duties
essential TO the end for which the people
are associated into nation--the general
good?' Gen. Black asked. "Is there any
Justification. then. in permitting destruc-
tive competition between these agencies?
One class Of our carriers has been
permitted SO to order its business as
practically to wipe out another class. AS
a general proposition inland water trans
portation has been killed This has been
accomplished by a manipulation OF rail-
road freight rates. rendered more easy
by an arbitrary system OF freight classi-
fication. In what other class of business
is a scale OF charges permitted which is
independent OF the scale OF values of the
| service rendered? Where else within our
country is 1t permitted to make one
charge to one community and a different
charge TO another for the same article ?"
Calls It Unjust Taxation.
Pronouncing discriminatory freight
| rates to be unequal taxation" he con-
tinued: ut Is taxation unauthorized by
law. and outside OF the powers granted.
or which should be granted. common car
riers. II Is the Kind of taxation without
representation which caused our fore
fathers to revolt against the mother
country. II is this policy which makes
the continuous work of adjusting dis
ordinations OF the Interstate Commerce
Commit sson, or as member OF one OF
the state railway commissions recently
puts 1t, of removing a discrimination at
one place to make II at another 1t is
this which is In part responsible for
much OF the hostile railway legislation
OF recent years.
"Is there any insuperable difficulty in
devising a Just system OF rates? Can
not there be devised and adpoted sys-
tenn OF freight classification based on
the cost OF handling and moving freight?
II such a system were adopted would
there be great difficulty in determining
| the cost OF movement of each class, and
the amount of terminal cost for each
class? If so. knowing the average vol
ume of each class carried and the aver
age haul for each class annually. can
not costs be determined? Is II not then
possible to add TO each of these costs
its proper proportion of a roads over
head expenses. including interest on In
vestment a fund for betterments, &c?
Adjusting Scale of Charges.
In the case OF competing roads OF
unequal length, cannot the scales OF
charges be adjusted to the cost by the
cheapest line? Would not this be Ak
actly in line with the practice OF manu-
facturers In general? Finally. would
not such a coarse make IL possible for
definite valuations to be made OF the
usefulness of other transportation
agencies, so that capital would lose its
fears. and these agencies be free TO de-