Rensselaer Union, Volume 5, Number 39, Rensselaer, Jasper County, 19 June 1873 — The Railroads and the New Illinois Law. [ARTICLE]

The Railroads and the New Illinois Law.

A repotter from the Inter-Ocean called yesterday upon several prominent railway officials of the different roads centering in G’liicago, and from them learned that the steps which led to the abolition of the, pass system received its first momentns from a clause in section 3 of the act becoming a law on the Ist prox. This clause prohibits any discrimination in regard to persons or freiglits, yet allows the corporation to issue commutation, excursion or thousand-mile, tickets,. as heretofore. Railway companies can fix upon any commutation, half-fare, excursion, or other rates; but they must grant no special rights to one individual not to be enjoyed by ail. The pass system lias been a heavy burden upon the railway companies, and it was witli great alacrity _that they.sought refuge behind the sheltering clause of the new' law and abolished it. This burden lias been heavier upon some Toads than upon others. The Superintendent of the St. Louis Railway stated yesterday that ten per cent, of their passenger travel was composed of persons traveling upon free passes. The location of the State capital upon this road increases the “dead-head” travel to a large per cent.; but each of the heads of the various roads visited state that a large per cent, of their ravel is also free. The rumor that gained considerable credence in railway circles in regard to the “pooling’’ of the earnings of the Milwaukee, St. Paul & Chicago and Northwestern roads, it is claimed, has no significance. This question would be settled by the Executive Board of the different roads whose headquarters are in the city ofNew York. The officers of the Northwestern Railway say that a change of this importance would involve a revolution in the entire management of the roads interested, and no information having been received from New York, the rumor is not heeded. They state that had sucli change been effected, immediate notice would have been given the companies interested. The most important question of all, what rates to charge and how to adjust them under the new law, is still unsettled and affords a subject for lively discussion and prolonged consultation. Under the old law-, or the law which Is supplanted by that going into operation on July 1, the railways were allowed to adjust their passenger and freight tariff rates so that they might he enabled to compete with railways affording a short and more direct route. Take the Rock Island Railway, for instance, and the point to which the goods arc to be shipped— Peoria. Under the existing law the roads were allowed to have a certain fixed rate for each and all points on their line between Chicago and Peoria, and yet, if in competing with other roads, irregular or rates less than schedule rates were allowed, it was in perfect accordance with the letter and spirit of the law. And after having unloaded the cars of their freight at the destination, rather than haul back empty cars, a still lower rate might be fixed by the company for the transportaof goods to Chicago from Peoria. But by the law taking eflect on the Ist prox., these concessions by the roads to merchants,and this, opportunity to compete with rival routes by means of cheaper rates, is entirely eut off. The new' law requires the same discrimination in regard to freight tlqjf it does in the case of passengers. It distinctly states that no road shall “make any unjust discrimination in its rates or charges or compensation for the transportation of passengers or freight of any description.” * * * And further, “no railway shall charge, collect, or receive for the transportation of any passenger, or freight of any discriptiori, upon its railway, for any distance within this State, the" same or a greater amount of compensation than is at the same time charged, collected, or received for the transportation in the same direction of any passenger or like quantity of freight of the same class over a greater distance of the same railway;” or, in other words, no railway can charge a certain rate for freight to ah intermediate station, but it must charge the same proportionate rate from the shipping point to the,destination. This questhe officers have found it difficult to settle so that they may conform to the law and yet do themselves justice. So far, the most practical way of accomplishing this seemed to be by means of distance tariffs; that is, gradually increasing rates in accordance with additional mileage. The plan determines the rate to a given point, and decreases in charge per mile as the distance increases; so that when the traveler has reached his destination he will be charged with a greater amount, but will really have paid a lesser sum per mile considering the entire distance. The same principle applies to freight. This plan would seriously interfere with the business of the nofth and south lines, because all the traffic would be token from them at every competing point. The schedules and opinions upon them are being prepared, and will be considered and definitely settled at the next general meeting. The railway men say that, in case this plan goes into operation, it will seriously impair the business of Chicago. The intersecting lines traveling eastward will take over their routes all business to and from the East, because their lines are shorter, and consequently cheaper. Thus they say, the Chicago merchant will be neglected for the New' Yorlt and other Eastern merchants, and traffic will be shipped without benefiting Chicago. In regard Jo the pass system the officials state that as the abolition of the-entire system is required by law it will very likely be of permanent duration. They are glad that the law has done,for them, in so short a time, what they have been so long trying in vain to effect for want of unanimity of action. Railway men say that Illinois has set an excellent example, one which will be followed throughout the entire country Without doubt, The railway officials are goirig to enforce the new law in every jot and tittle. They acknowledge the existence of many evils which it will, be beyond the power of any law to eradicate, but propose to do" everything in their power to regulate the running of their roads to the new* law. The new schedule of rates now ljeing prepared will be observed, said a prominent railway official yesterday, until some road begins to cut rates and provoke retaliation from, the other roads.— -Chicago InterOcean, June 5.