FAHMERS' INSTITUTES. 333 



In conclusion we cannot do better than to refer to the seven points of ad- 

 vantage possessed by the narrow guage roads over the standard guage, as de- 

 termined by the railroad convention lield at St. Louis, in 1873. 1. Costing 

 only about one-half as much as the broad guage, it is within the means of all 

 sections to build them, hence will enable them to avail themselves of railway 

 facilities, where otherwise they would be cotnpelled to dispense with them. 2. 

 From this small cost, light operating expenses and small interest account they 

 ■will prove to be i)aying investments. 3. They will supply the great want of the 

 age, — cheap transportation. 4. Cheapening transportation, they will develop 

 dormant interests more rapidly than our present costly structures with their 

 higli rates can possibly do. 5. Their general adoption in sections without rail- 

 road facilities will enhance the value of })roperties largely in excess of their 

 cost. G. Penetrating these sections, and rapidly developing their resources by 

 low rates, they will bring a large new business to the broad guage roads, ena- 

 bling them to reduce their rates and thereby stimulate old and develop new 

 interests. 7. A failure to adopt the narrow guage roads in the sections refer- 

 red to will necessarily defer the construction of railways until such times as 

 their means will admit of the more costly broad guage with its consequent 

 high rates. 



Signed by committee of eleven railroad managers and engineers. 



The following books of reference were used in the preparation of this arti- 

 cle : Van Nostrand's Engineering Magazine, Volumes 1 to 17; Michigan Kail- 

 road Reports ; U. S. Keport on Internal Commerce; Poor's Manual of Rail 

 Roads; Railroads, their Origin and Problems, C. F. Adams. 



Note A. — Mr. Albert Fink, of Louisville, Ky,, now manager of the pool on west 

 bound freiglit, and universally admitted to be one of the best informed men on the 

 subject of freight transportation in the United States, as w'ell as one of the best 

 railroad managers; says: "It is this excessive competition and tlie ruinously low 

 rates of transportation caused thereb}'-, which reverse the natural order of things. 

 And as this competition is spasmodic, often depending on the will of a single indi- 

 vidual, the fortunes of people in great sections of country, the succes of their manu- 

 facturing enterprises, their prosperitj', etc., are made dependent upon his slight 

 threats. No wonder, therefore, that great complaints have come from the people 

 who suffer under it, and that attempts were made to prevent the same in so many 

 of the States. 



Unfortunately, the people do not iniderstand the causes and nature of the difficul- 

 ties, and could, therefore, not apply the proper remedy. It is the excessive competi- 

 tion, the unreasonably low rates of transportation on the competitive business, which is the 

 cause of the difficulty. The principle of proportioning the tax according to distance, to 

 establish rates based upon mileage lias been embodied in all the railroad laws that 

 have been passed, and this principle, with proper modification, is no doubt correct; 

 but instead of trying to enforce it upon the railroads of a single State, it should be 

 enforced at the same time all over the country, not applying to way business alone, 

 but which is much more important, to the competitive or through business every- 

 where.'' 



There can be no objection to low competitive rates, but whenever made, they 

 should be made under two conditions: first, they must be permanent; they should not 

 be materially changed except the conditions respecting cost, etc., make a change 

 proper; and, second, the rates to intermediate points should be reduced, if not in 

 direct proportion, at least in some measure and upon some principle that would not 

 work injury to intermediate points. No restrictions sliould be imposed upon a com- 

 mon carrier as to lowering its rates of transportation to any two points it may 

 choose, but restrictions should be imposed forbidding it to make unjust discrimina- 

 tions at intermediate points. 



There are other unjust discriminations made resulting from the same motive. The 

 practice of making special contracts with some shippers, — the large shippers gener- 

 ally, — at lower than regular rates, and charging the regular rates to all other ship- 

 pers. It is practiced to a great extent. The rates of transportation between two 

 points should be the same to all shippers. In case of shipments on railroads in less 

 than car loads, the cost will usually be greater than full car load shipments; but 



