Year: 1873

UNDER THE NEW LAw-THE PRESENT INCREASED


RATES EXPLAINED-CHARGES or UNJUST DIS


CRIMTNATToN REPELLED-RAILRoAD PROPERTY


NOT PRODUCING FIVE PER CENT


lFRoH THE SPECIAL CORRESPONDENT OF THE TRIBUSEl


CHICAGO, July 19.-The Chicago, Alton and
ST. Louis Railroad is one OF those most affected by tho
new law in this State, and having been party TO the
suit argued before the Supreme Court OF the State, in
which Judge Lawrence made his decision declaring the
law Of 1871 to DO unconstitutional its officers have
studied the whole railroad problem with greater
than those Of almost any other road To ono OF them
am therefore, indebted for much valuable information
bearing the present controversy He agreed with
Others with whom have cOnversed, both railroad men
and farmers that OF the chief OF the present
movement" among the farmers ia the extraordinary
abundance OF the crops during the past two years. the
consequent OF grain supply over the de-
mand, and necessarily low prices. "Thcn," he
continued "there another fact which the
farmers will not admit though it Is never
theless true that the high prices during the have
engendered expensive habits among tho farmers. OF
which they knew nothing before. Whom horse or a
mule worth two prices. and bushel OF or Of
oats three the silk dress got into the family and they
don't know, now when hard times have come, how to
get It ont. Then too the railroads made money and
though their freight charges high the farmers did
not complain Well, when they began to be short Of
money the farmers looked about for somebody to blame
for IT, and seeing that the railroads took considerable
percentage for the transportation Of their gram they
naturally often without stopping TO reason, jumped to
the conclusion that IL must be all the fault OF the rail
roads that they not more prosperous. This idea
has been famed by politicians and demagogues who
don't have pound OF freight to transport In year, un
ill the excitement has grown TO be what you Sew
era attempts have been made 10 regulate tariffs by law,
but the railroads took notice OF them, until finally
they got tired Of contesng the matter the courts and
concluded actually to make their schedules this
last law requires them to do abandon certain classes
Of business they will bo obliged 70 do, aud let the
farmers what the result will be- SO on the lst OF this
month the railroads Of this State generally raised their
rates Q tell you by and by why that necessary
and we are beginning to see the working Of the new
law"


THE ROADS ANTICIPATING SMALLER RETURNS UNDER THE


NEW LAW.


In answer 10 further questions, he said: 1--WE don't
know yet how the execution Of the law will affect us
but with the increased rates, shall probably
make less money than under the old ones. The effect
upon many kinds business along the different roads
will, If the law is enforced, be very disastrous. Take
the coal mining business for instance along the ne Of
the Rock Island road Here is man whose mine is
6l miles from Chicago, another whose mine is 100 miles
out another who is miles away aud fourth whose
mine Is l3G miles out Now, all Of these men send their
coal TO Chicago the cost OF mining about the same at
each point. II the railroad company must increase its
freight charges each Of the ten stations between
the first and the fourth mans mine and is not allowed
TO take the last mans coal to Chicago about cheap
il does the FIRST you very easily what the re-
sut will bethe who is nearest Chicago will under
sell the other three and destroy their business Again.
the Michigan Central buys coal in the central part OF
this State; but If they can't have some special rates
which will be cheaper than what is paid for single
load taken the same number OF miles to way-sation
their VIII cost much that they will have to buy 1t
elsewhere. The is true OF tho mler's business
where
mills in which the wheat is ground up and then sent to
Chicago or St. Louis to market Now the st. Louis mills
govern the market there and have been in the habit
OF giving the miers along line cheap rates that
they could afford to continue in the business; but under
this law We considering forbidden to do this
and the mills will either have to stop nd direct
market in New-York."


said that should suppose that 1t would be better for
the producer to have his grain first sold IN New-York
than here In Chicago IN 81. Louis.


at is not generally so" his reply. In the FIRST
place 1t takes longer to get the money back which, In
trade You know is often great obstacle And then
NewYork s far off that man can't take advantage
Of a favorable market, he when he sells near
home. Men who are sending East will pay moro
II they have the option OF stopping 1t at Chicago
they don't have that privilege. Then II the mar
ke is favorable when the grain arrives here, why they
sell it II not, they let it go on"


REASONS FOR THE PRESENT INCREASED RATES.


d" said would tell you why the railroads have been
obliged to increase the rates under the new law Take
our own road At certain OF the year our bust
largely way, and have great numbers o.
empty cars St. Louis and Bloomington. Those cars
must be brought back TO Chicago either loaded OF empty
Now wo will suppose that there is man In St. Louis
who has freight go East he likes the management OF
our road, and would give the business, provided we
would give him rate 10 NewYOrk Boston that will
be cheap the other routes. We deduct the amount
which know we shall have to pay the roads run
ming East from here and find that We shall have only SIS
q left for share. We couldn't afford 10 run the
road at all II that regular price, but the
question VIII it be better to send the cars back
empty and let them earn nothing shall we let them
earn the sl5 each The expense OF getting those cars
back TO Chicago will not be percepiby greater II they
loaded than they are empty and whatever We get
Will be much toward paying the expenses OF running
the road. But this law comes in and says "fou
do this; you must charge more for taking that
freight from Louis 10 Chicago than you charge for
taking II from any intermediate station The result is'
we have abandon that kind Of business altogether.
and collect enough more from regular business to
make up for the loss OF income"


"The farmers think the railroads are trying to make
the new law odous by demanding unjust rates." re-
marked.


lido MT think 1t ia so," he replied. Some OF the
rates high; there is doubt about that but still
think the railroads OF the State will make less money
than before. Take Bloomington. for instance,
road fregts will be higher from that point to Chicago
and also East, than they before. There We com
peted with East and West road and the only way we
could get any through business was to reduce our rates
that the East by Chicago would be as cheap as
the other This could afford TO do. as bloomington
was point at which generally had empty cars that
must be returned Chicago Now that we have had TO
put up the from Bloomington TO the same scale
with those from other points, the business oil goes the
other way but not cheaply before for the east and
west road has increased Its to within fraction Of
what ours are. and long this arrangement lasts
they will keep Just enough under US to get the business
DISCREPANCIES BETWEEN THROUGH AND LOCAL