588 THE POPULAR SCIENCE MONTHLY. 



commissioners, for June 30, 1876, p. 132, the highest rate is stated at 68 ft- cents, and 

 the lowest at 6-ft- cent. I have, therefore, omitted the rate given of If cent from the 

 above table. 



As these short lines are supported entirely by local traffic, a 

 proper comparison of their rates with those of the Central Pacific 

 should consider only the local rates of the latter. The commissioner, 

 in the same table, furnishes us with these, so that we are enabled to 

 make the following comparison : 



The average charge per passenger per mile was, on the short lines, 

 ^ttht cents ; on the Central Pacific (for local only), 2 T 8 ^- cents. The 

 average charge per ton of freight per mile was, on the short lines 

 i^roV cents ; a*d on the Central Pacific for local only 3^^- cents. 



Here, again, the facts show that this great California corporation, 

 which is charged by the Anti-Monopoly League with constant and 

 destroying extortion, has much lower average rates than these smaller 

 companies which are not conspicuous enough in size or wealth to draw 

 the attention of the press or the attacks of politicians. 



The tendency of railroad ownership and management has from the 

 beginning been toward amalgamation. This is apparent to all, and 

 is popularly termed the growth of monopoly. The facts that have 

 herein been presented all tend to illustrate the truth that this amalga- 

 mation has been accompanied by as constant a reduction of rates. 

 The so-called " monopoly " is thus shown to be exactly the opposite 

 of those privileged corporations which, in the past centuries, have 

 given the word its evil significance : for, without any special or ex- 

 clusive privilege, the railroad is in itself an institution which naturally 

 secures whatever monopoly it has of the business of transportation 

 by the superior advantages and cheapness which it affords. With the 

 reduction of rates, therefore, the " monopoly " must increase ; for the 

 reduction of rates means an increase of traffic. 



The reduction of rates, however much it may be influenced by the 

 competition of parallel lines, is absolutely controlled by the operation 

 of those great natural laws which govern all commercial transactions. 

 These laws are summed up in the statement, made some years since by 

 the President of the Central Pacific Railroad Company, that " the in- 

 terests of the railroad and the community are identical." The pros- 

 perity of the former is absolutely dependent upon the prosperity of 

 the latter ; and the development of the industries and the increase of 

 the products of the communities depend upon cheap transportation, 

 perhaps more than upon any single thing. It becomes, therefore, 

 not only the interest of the railroads to furnish cheap transportation, 

 but they are led also to the same action in their efforts to increase 

 their net income. As the ratio of expenses decreases with the increase 

 of traffic, a reduction of rates which secures an increase of traffic thus 

 produces an increase of net profit. Consolidations, by reducing the 

 ratio of expenses, make possible the greater reduction of rates ; and 



