PHOTOGRAPH OF
V113 I" a half-tone of -a remarkable photograph taken by F. A. Shogren. staff photographer of The Orego
nian, on bright flay in October. It -was made with a trfc-photo lens from The Oregonian tower, the object being
WHAT is a freight rate? That
question has been puzzling thou
sands since the plan to place the
establishment of rates In the hands of
the Interstate Commerce Commission has
come up In Congress. "What Is all this
great pother and newspaper agitation
about?" says the man In the street, to
whom the matter of fixing the charges
for the transportation of commodities
seems, in the casual consideration, some
thing simple enough something that any
one familiar with the broad principles of
railroading could reduce to a National
system as inflexible as algebra, some
thing that must bo guided by the simple
.facts of the weight of the commodity and
the number of miles It Is carried.
But the Inquisitive person will still ask.
"What is a freight rater The query
was put to several experienced railroad
men. One defined it as "the value of the
commodity (namely transportation) that
a railroad has to sell." Another called
it "the price charged for transporting a
commodity between two points." Such a
thing seems astonishingly simple. As a
matter of fact, a rate is as elusive as a
greased .pig.
The Man Behind the Rate.
Among the highest paid railroad men
are the freight traffic managers. On all
the great roads these men have under
tfcrm. a large staff of freight experts,
tvho are constantly hunting and pursu
ing and .studying and adjusting in the
matter of rates. If the traffic manager
Is paid such a high salary and has such
an elaborate staff ' under him. obviously
is work must be. of a supreme import
ar.e to the railroad. It Is. He la the
man behind the rate. His main business
Is to catch the greased pig, to fix the
rate,
A traffic manager can no more estab-1-sh
a freight rate by taking Into con
sideration merely the length of the haul
ard the tonnage of the commodity than
a publisher can establish the value of a
book by considering the number of words
and the cost of binding. Some of the
things the traffic ' manager has to con
sider In fixing his rates are the value of
the freight, the danger of damage to It
and tno costs of such damage, the costs
cf service, the conditions of competition
to the shipper, not only at the shipping
point "but also at all other points from
which competition may come, and the
laws of supply and demand. These are all
In addition to considerations of tonnage
and mileage.
Considerations Simple Enough.
Certain of these considerations are sim
ple enough. Fine furniture, for Instance.
Is more valuable than grain and it Is
natural that the rate for It should be
higher. The same tonnage of silk or of
gTnHe might bo packed in a freight car;
but xh rate for silk will.be higher, bo-
WHAT IS AN EQUITABLE FREIGHT RATE?
cause it might easily be damaged If the
car was overturned, while the granite
could remain In tho open without injury.
Crockery, in the same way, is much more
damageable than pig iron. Again, a haul
over a country of steep grades and many
turns will entail a higher rate than a
straight and level run. Thus, on level
regions a road may move 30 or 40 cars
more easily than 15 or SO could be moved
on a stretch of sharp grades or hills. At
times a road may have great quantities
of freight moving in one direction, while
empty cars are clattering back on the
other, and this waste of energy must
modify prices. A community that manu
factures a product in which there Is prac
tically no competition can pay a higher
rate than one in whioh there is much
competition. And the rate Is affected by
the fact that the commodity may be a
luxury or necessity, for naturally It makes
less difference to the shipper of jasper
and onyx what rate he pays than to the
man whose commodity is building stone.
"When ho reaches the consideration of
competitive conditions against his road,
the freight traffic manager has a more
delicate situation to handle. For Instance,
In the export side the competition in for
eign markets of like articles coming from
and going to other ports than those oi
the United States Is a big complication,
"as for Instance," points out Mr. James
B. Dill, of New York, "grain from Rus
sia, the Danube, the Baltic, India, Aus
tralia. Canada and Argentina; cotton
from India, from Egypt, and, perhaps, in
the future, from other parts of Africa;
and so on, of each and every article, in
the varying stages of its manufacture."
To such competition the railroad rate
here must be receptive.
Water Competition.
The railroad freight rates from Kew
York to Son Francisco are lower than
from New York to some intermediate
points because of the competition by
water. A similar situation exists in
the rates between Boston and Port
land. Me.; and again between New
York and New Orleans and between
New York and Buffalo. Tho fact that
the Hudson River and the Brie Canal
are open to navigation seven months
of the year affects the railroad rates
not only for these months, but also for
the -entire year. The traffic manager
must make his rates high enough to
insure a profit, but at the same time
low enough to attract the shipper who
is willing to pay something over the
water-route freight rate, in considera
tion of the quicker transportation by
rail. Railroad rates in the case of
lines running from port to port on the
Gr,eat Lakes, where the roads mus.t
compete with the great freight-carrying
steamships, are ground down to a
minimum, while on parallel reads 100
miles Inland rates may be considerably
higher.
Moreover, tho freight traffic manager
may have to consider a peculiar prob
lem of competition by other roads. For
instance, from Boston 'to. Worctater-by.
THE SUNDAY
MOUNT HOOD TAKEN AT SIXTY MILES RANGE
the Boston & Albany Is a distance of
44 miles, while It Is 70 miles by the
Boston & Maine. Hates must be kept
practically the same on the two roads.
In spite of the divergence in mileage.
The freight traffic manager Is contin
ually confronted by odd general condi
tions like this In his never-ending
problem of the adjustment of rates.
From Chicago to New York 21 routes,
ranging from 912 to 137C miles, com
pete for traffic, and between Omaha
and San Francisco there are five lines,
of which the shortest Is 1865 and the
longest 2724 miles.
The Rate Man an Arbiter.
The rate adjuster is to a large extent
the arbiter between the cosiness inter
ests In the communities through
which his road passes. He must know
the commercial conditions of those
communities like a book. His rate sys
tem must be a barometer that will re
flect exactly the commercial weather
of his territory. If his rate toward one i
community is too high, the discrep
ancy is immediately reflected by the
breaking down of business and manu
factures in that community and an im
mediate falling off In the business of
the road as regards that point. If, on
the other hand, his rate is too low, the
road suffers directly. He must study
each community as to every article of
commerce it produces and the markets
therefor.
The rate above all else must be flex
ible. The freight traffic manager must
often rely on his expert judgment as
much as on broad, general principles of
rate making. He must have the knowl
edge and the sense of commercial sym
pathy to reflect ever-changing condi
tions and novel contingencies that
keep "unexpectedly arising. His watch
over the communities his road trav
erses must be as close as that of a
physician over his patient or rather
he Is the physician who must at once
time the pulses of a hundred, a thou
sand patients. And as no physician can
conduct his practice on general princi
ples of medical application, but must
be guided also In each case by an In
timate knowledge of the patient's
physical and neutral makeup, so the
traffic manager must nave the sympa
thetic knowledge of his communities
to apply In separate cases, or he falls.
"But what," railroad men are asked,
"if your rate adjuster is made respon
sible not to the road, but to the Gov
ernment merely? . "Would he care
enough about the prosperity of the
road to maintain this delicate balance
and conserve the interests of the com
munities affected?"
Official Versus Private Efficiency.
One Eastern railroad officer an
swered the question this way;
"Suppose the Government selected
your physician and hn was responsible
to the state only. Do you think that
ha would take as much.' interest in your
OEEGONIAN, PORTLAND,
60 miles distant from the camera. The exposure was only .three
this the best picture of Mount Hood ever made; that is to say. the
welfare as a man paid by and respon
sible to you? Would he not be likely
to sacrifice certain patients to certain
others whose political Influence might
be used to his advancement. And, fur
thermore, having un assured Govern
ment position which might as likely
have been obtained through political
pull as through peculiar qualifications
and expertness would he have the
same Incentive toward general excel
lence and care for detail as he would
If his livelihood and standing depended
on his success In individual cases?
Even If he were a man of high honesty
and efficiency, I believe that the an
swer would be "No." And the same rea
soning must hold good In the case of
the rate adjuster."
A Diversified Problem.
How diversified a problem Is the
making of rates Is not easily illustra
ted, because of the vastness of the
thing. The New Yorker who sits at his
dinner-table uses silver utensils
brought as ore from the Far West; his
table is made of lumber which may
nave, been brought from Maine or Cali
fornia and manufactured in Connecti
cut; his sugar Is drawn from Louisi
ana; "his bread is made from flour
ground In Minneapolis from wheat
grown in the Dakotas; his beef Is
raised in Texas and slaughtered in
Chicago; his bacon was cured in San
Francisco or Omaha; the milk ne
drinks Is brought possibly from 200
miles up the state; the eggs ho eats
may have been laid in Iowa, and his
fruit dish may display at once the pro
ducts of Jersey, Florida and Oregon.
"What innumerable freight problems
have gone toward producing for us
even a simple repast! What a factor
the 'rate is upon our very table. And it
Is woven In the very clothes we wear.
The working man In New York is
clothed In wool from Oregon, or cotton
from Texas, woven Into fabrics in the
factories of Connecticut.
Results From Slight Changes
A slight change in rates is produc
tive of consequences which might be
termed colossal. According to Presi
dent Mellen. of the New York, New
Haven & Hartford railroad, any one. of
the big railroads of the country
spends more money each year In the
adjustment of freight rates than tne
entire expense of the Interstate Com
merce Commission. A change in its
freight, rates of only one per cent per
houndred pounds costs the New Haven
road $11,300 to prepare new schedules.
President Lucius Tattle, of the Boston
& Maine, recently elucidated, in a
speech to the Brotherhood, of Locomo
tive Engineers, that the average
freight rate received by. all railroads in
1S93 was S.93 mills per ton per mile,
while In 1903 the rate was 7.S1 mills.
This reduction of 2.12 mills in the av--verage
Irelfbt rate aaeount in a yx
MARCH 5, 1905.
to $191,000,000. President Tuttle gave significant and inconsequential, but state Commerce Commission for 1904,
a further illustration of the large con- which, when averaged over the year's the gross earnings of the railroads for
sequences of a slight change in the freight tannage, became a balance of the year were $1,966,633,821 and their
rate. He recalled that in 1903 the em- nearly $800,000, an amount almost suf- combined capitalization was $12,533,
ployes demanded and received an in- ficlent to make good the year's wage 990,25?. There were 2,358,960 railroad
crease In the wage schedule amounting . increase." tariffs on file, the annual average being
In all to $800,000. He said: "For that How vast a task is that of rate mak. over 130,000, and more than a third of
same year the company fortunately re- ing in this country Is indicated by the commission's clerical force (appar
celved an increased average rate of railroad statistics alone. The internal ently about 30 clerks was kept con-forty-seven
one-hundredths of one commerce of the country for last year stantly busy filing, indexing and furn
mill a ton a mile upon Its total freight has been estimated at $22,000,000,000. ishlng information in reference to
movement, a sum In itself wholly In- According to the report of the Inter- them.
Little Sermons - - By Elbert Hubbard
Aphorisms by the Editor of "Tne Philistine," Author of "Little Journeys," Etc.
THE employe who drives a sharp
bargain and Is fearful that he
will not get all hb' earns, never
will. There are men who are set on a
hair-trigger1 always ready to make
demands when there is a rush of work,
and who threaten to walk out If their
demands are not acceded to. Such men
are out of employment about half of
the- time, and the curious part of It Is.
they never know why.
GOOD health! "When you go out of
.doors, draw the chin in, carry the
crown of the head high and fill the
lung? to the utmost; greet your friends
with a smile and put soul into every
handclasp. Do not fear being misun
derstood, and never waste a minute
thinking about your enemies. Try to
fix firmly in your own mind what you
would like to do, and then without any
violence of direction you will move
straight to the goal. Fear Is the rock
on which we spilt, and hate Is the
shoal on which many a bark is
stranded.
ETTERs,occasionally oe deceived
tnan to oe always aisiruauuu
WB learn in moments of joy; play
is education; pleasurable anima
tion Is necessary to growth; and. when
you have robbed a child of its play
spell, you have robbed It of its life.
I WISH to meet all men on an abso
lute equality; to face any obstacle
and meet every difficulty unabashed
and unafraid.
WB reap as we sow. We hear that
quite often, don't we? But it is
only a half-truth, for not only do we
reap as we sow but we reap as other
men have sown. We are heirs to the
past its good, and ill, and all the mil
lion o f men -who have gane'b-efor-u.3-
seconds. Professional photographers as well as skillful amateurs consider
best picture of the mountain as. seen from Portland.
Thousands of Experts Ever Busy Adjusting the-Delicate
and Flexible Problems.
havo for us prepared' the way. Not
only do we reap the ripe grain that
others have planted, but our bare and
bleeding feet tread the thistles sown
by those long dead. Be careful how
you sow!
LET us work to make men free! Am
I bad because I want to .give you
freedom, and have you work In .glad
ness Instead of fear? Let's abolish .'the
devil.
MEDIOCRITY always fears when
the ghost of genius does not down
at. its bidding.
DO not stop to think about who are
with you and what men are against
you. It matters little at the last
both the ability to harm and the ability
to help are over-estimated.
NATURE punishes most sins, but
sacrilege, blasphemy and heresy
are things that Nature does not pro
vide any punishment for; therefore
man has to look after these things him
self. THERE Is no secret spciety that has
corralled truth. Truth is in the
air, and when your head-gets into the
right stratum you know it. No one
fcan Impart it to you until the time. Is
ripe, and when the time' is ripe lor you
to know, you do not have to ride a
goat in order to understand.
AT hotels tho man who complains
Is the man against whom the serv
ants are always in league, and the man
who complains most is the' man-who
has the least at home.
EVERY employer is constantly look
ing for people who can help him;
naturally, he is on -the-lookout among
.Ms .employes .for thoaa who do . sot
33.
help, and everything and everybody
that Is a hindrance has to go. This la
the law of trade do not find fault with
it; it Is founded on Nature. The re
ward is only for the man that helps,
and' In order to help, you must have
sympathy.
BE pleasant until 10 o'clock -in the
morning and the rest of the day
will take care of Itself.
THE ostrich's plan of disposing of
difficulties is not without its dis
advantages. Could Not Escape.
The following telephone conversation Is
reported to have been neard between a
certain well-known young financier and a
society woman whose functions are con
sidered somewhat boring:
"Is this Mr. ?"
"Yes."
"This is Mrs. . Won't you1 give- us
the pleasure of your company at dinner
on Monday?"
Tm so sorry, Mrs. but I have an
engagement for Monday."
"Can you come Tuesday, then?",
"Why, it Is most unfortunate, J but I
havea partial engagement for Tuesday,
also." '
"Well, now about Wednesday?"
"Ob, hang It! I'll come Monday."
Her Family's Longevity.
A Virginia Representative In Congress
says that two ladles In Richmond with
whom he Is well acquainted were one day
discussing the relative longevity of the
members of their respective families.
"I have no doubt," said one of the
ladies, "that, everything; considered, we
Blanks are the most notable family In,
Virginia when it comes to a question of
longevity. Do you know, my father died
at S3, while my grandfather reached the
advanced age of 97.'"
"Is that so?" queried the other lady.
"And which grandfatherwas. that?"
"Oh," replied the first speaker, ---"that
was- the grandfather of my-ffirat "huebaad."