Arizona republican., 1921-11-16
Why Rates Are Made

The controversy between Galveston and the Pa ports over business of hauling cotton to the is being considered without reference to the only party who has any righteous concern in the matter-the grower of the cotton. In fact in rate making the interests of the producer, the who pays freight. are disregarded in favor of some railroad point Everything else is lost sight conflicting claims of rival shipping points. And particularly the question of just and reason able rate, reasonable return for service is dsre- gaded.
 The cotton growers of Texas and Arkansas do care whether Galveston Los Angeles San Diego sends their cotton over but they do that it shall be delivered with the least possible pense in the Orient that it may compete with cotton from other parts of the world.
 In this case, it appears that the railroads made a rate by which cotton grown in the western and northern of the southern territory could be sent by rail to Pacific points to be shipped by equal terms with cotton in territory adjacent to Galveston which has enjoyed a monopoly of foreign cotton shipping from that region That rail rate presumably low enough to neutralize the cost of transshpment points and all other of sending the cotton that instead of all the way by from Galveston. Such rail rate, of course. advantageous to the shippers in the region to which the rate applied. But the rate made to favor the shippers but the coast points The benefit to the shippers only incidental An incidental benefit is better than none at all.
 There is though another thing to be considered and which seldom appears to be given consideration either by the railroads proposing rates the terstate commerce commission in approving them, the relation them the of the service rendered.
 The new cotton rate measured by the cost of the service is probably too low, at any too low by comparison with rates other commodities of the ela ation he rnav he iS in many cases below the cost of service, and the diff be made up by exorbitant rates other commodities that great injustice is imposed upon producers Of other commodities upon sections of the country which have concern in the contro- versies shipping points resulting in adjustments.
 We hear railroadmen talk of the 'rate structure" in which laymen find it difficult to under stand They tell that it a very delicate struc- ture and that slight and apparently reason able interference with it is apt to disarrange the whole thing. We also told that its apparent in equalities necessary to equalize conditions throughout the whole country. If there such equalization these inequalities might be excused but there is not As result of these inequalities we find that communities highly favored. while others held in bondage.
 We have the proposal of the railroad com panies to put in lower through rates to and from Pacific coast points when the roads are already claim ing to be doing business at loss The greater loss then be made by soaking the interior and we that if thls proposal is carried out, of the interior will be bound hand foot and our de- velopment arrested
 The long and short haul clause of the interstate commerce act contemplates rates which will bring a reasonable return for sevice. But it is unfor- tunately provided that with the assent of the interstate commerce commission this clause may be violated frequent violations have resulted in this crazy edifce which is called rate structure.