Year: 1873

COMPETITION KILLED-THE RULING OF


THE RAILROAD COMMISSIONERS


TER-sTATE COMMERCE.


From the Chicago Tribune.l


1t was plain from the beginning that
the railroad law passed by the last legis-
lature was destined to kill competition.
This was, in fact, the intention of its ad-
vocates. 1t was passed in Difference to
the complaints that came from inteTme-
diate and non-cOmpeting stations, that
towns where there were two or more
railroads were favored with lower tariffs
than towns where there was only one.
The new law was framed to place sll
shipping points within the State on the
same basis with respect to trsnsporta-
tions, and to govern railroad rates ac-
cording TO relative distance from mar
ket. The result thus far has been to kill
competition without the least relieving
the intermediate stations. The rates
have been increased at tcompeting points,
bat they have not been reduced as gem
eral thug at the nOn-nompeting points
The necessity imposed upon the Illinois
railroads of increasing the rates at COM
peting points has thrown the business
into the hands of railroads having a
shorter distance within the State. This
loss of business and gross earnings has
been followed by an increase of rates in
the Illinois roads. Unless it cln be
proved that the loss of business which
the railroads have sustained by reason
of the law has not been sufficient to
warrant the increase of rates, the people
must regard the new law as an made
quate remedy; and, in that case, they
will be likely to demand its repeal or
modification at the next session of the
legislature. The railroad commissioners
have ruled correctly that the new law
does not prohibit special rates for large
consignments. 1t applies only to 'like
quantities of freights. This affords the
railroads liberal margin for avoiding the
law if they choose to do so. 1t is seldom
that any two consignments are precisely
the same. If they are not, the railroads
have the technical right to make special
rates. There is no restriction on the
railroads under the law as to what shall
be regarded as large shipment, and
they may, therefore, decide this tor
themselves in every instance. If they
should avail themselves of the full scope
of this privilege, it will be seen that they
could practically render the law inopera-
tive. They have chosen not to pursue
this course, and the inference is that
they prefer, even at some loss to them
selves, TO make the pro rata principle
odious. Another construction which the
railroad commissioners have made is
absurd and untenable. This is the ap-
plicatiOn of the law to Interstate COM
merce, over which neither they
nor the State of Illinois have any
control. The railroads have de-
cided, however, to abide by this
construction, and, in doing so, they are
iDjuring themselves, the commerce Of
the northwest, and the city Of Chicago.
| They justify themselves in this by the
plea that the people expect them to be
covered by the railroad commissioners.
This is, in one sense, true. The con-
struction, ridiculous as it is, is undOubt-
edly the one which the mass of the peo-
ple demanded. As an indication of the
effect of applying the law to this class OF
shipments, il is stated that the eastern
roads, which have but small portion of
track within the State, have lost large
portion Of their grain business. 1t was
the custom of these roads to send their
cars to stations on other roads ia the in
terror Of the; State, and take through
eonsignments to the eastern markets.
The application of the local rates
from the interior to Chicago has
made this improbable, and the
business has been largely discon-
tinued. II the law were not applied to
this particular case, however, there
would be very serious discrimination
against Chicago, as this through or inter-
State commerce would practically shut
off handling freight in this city. 1t
would also be hardship upon the farm
ers, since the local rates would beapplied
whenever there should be a shipment to
Chicago to be transferred to lake vessels.
The farmers would likewise be disposed
to complain of discrimination IN favor
of more distant markets, where they
cannot secure such quick returns for
their grain. The situation, then, Is this
The State authorities have no right to
apply the law to any form of Interstate
commerce; but if they do not 50 apply
it, it fails to accomplish one Of the pur-
poses for which it was conceived.