Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-01-17
RAIL AND WATER RATES

RAIL AND WATER RATES
Beginning next Tuesday hearings
before a congressional committee on
the Gooding bill remind us that a
matter in which Maine is deeply con-
cerned is now before Congress. 1t is
tho Gooding bill, introduced by a
Senator from Idaho representing
constituents. who obviously wish the
railroads to bring to them from the
Pacific ports goods landed there from
the water routes. at as~fow rail rate
per mile from the ports to the inter-
Tor q would be charged by rail be-
tween the ports Of the Pacific and
the ports Of the Atlantic in COMPETE
ton with water service.
Here comes a conflict between
those who favor rail rates based on
the value Of the service rendered and
those who would have a fiat mileage
rate. whether for one or or for three
thousand miles. Here also comes
conflict between those who would
hsve the decision rest with the in
tetstate commerce commission. not
political organization. such as Is
Congress-. but one equipped with ia
cilities for securing data and estab-
fishing procedure based upon what
tho commission may conclude after
thorough consideration Of the condi-
lions involved. and those who would
throw the delicate problem Of rate
making into the political arena Of
Congress.
On the nat mileage basis Maine
producers would be at serious dis
advantage. They bear enough under
the present arrangement. which the
commission defended about a year
ago in a statement to the Senate
committee on interstate commerce.
a statement based upon long exper-
fence with tho long and short haul
problems.
The Boston Herald. commenting on
the Gooding bill. has this among
other comment:
"The commission defended its own
practice in making at various times
lower rates for long hauls than for
short. The outline Of it's seven rea-
sons, as cited, for doing SO covers
cases where a line has a more cir
cuitous route than q competing line.
where rail lines compete with water
carriers, where emergency conditions
exist OH account Of abnormal condi-
lions as drought or food. and where
carriers wish to meet competition be-
tween different ports. Also. where
there is commercial or market COM
petition, as where a carrier serving
q section whose products are\in COM
petition with those of other sections
desires to establish rates to a COM
mon market which will enable pro-
ducers on it's line to compete in that
market with producers in other Sec
tions.' And where carriers in poor
financial condition whose cost Of OPP
etHtlon, due to conditions beyond
their control, are unusually high,
desire to meet the competition of
stronger lines whose traffic, operat-
ing and financial conditions. are
more favorable And finally where
carriers operate under disadvantages
due to conditions other than Circuit
ty Of line; for instance. where car
riers forming a joint route are in
competition with a carrier having a
single line haul between competitive
points
I'm q word. the I. C. c. exercises
weaker roads, for the help Of the
under dog, for the aid of commu-
nifty which otherwise might be at
tho mercy Of strong" line, for the
equalization of conditions so far as
rules enable it to be done. Some
times the authority has been exer-
cised to the advantage Of one Sec
ton, again Of another. The COM
mission has played no favorites. 1t
is not manipulated by politicians"
"Once tho rail rates were lower to
the far coast than to the informed
late points. Now, for some time. the
roads have been permitted to make
rates to the coast only as low as
their rates to intermediate destina-
lions. But the roads, suffering from
the Panama canal business. have
been asking. as a measure for their
own protection, that the 1. C. c. shall
give them the right to make lower
rates to the coast on certain COM
mod1t1eS. In 1923 me amount OF
west bound tonnage through the
canal for the Pacific coast was five
times what it was in 1920. In the
same period the railway business
was cut almost in half. But when
the roads went to the commission
for some degree Of relief these inter-
mediate regions in the Pacific and
Rocky Mountain states vociferously
objected and the Gooding bill repre-
sents theif objections"
Surely the people of this country
did not wish the Government to build
the Panama Canal for the purpose
Of running the railroads. though they
may have hoped 1t would prove q
check upon any disposition those
might have to be exorbitant In their
charges. The boats bringing from
the ports Of the Pacific Coast to the
Atlantic Coast are really handling
interstate commerce. and it is not
impossible that regulation Of the
rates Of such interstate carriers may
be found in some ways as needful as