Special Railroad Rates For The Movement Of Coal In Volume Quantities

In discussing so-called "volume rates" for the movement of coal, I start from one basic premise: That it is the job of the railroads to devise rates which will move the traffic, while at the same time assuring a fair return on their investment. No matter how reasonable and nondiscriminatory freight rates may be, if they fail to attract and hold traffic to the rails, they are utterly useless - both to the carriers and the shipping public. And it will be my purpose here to show that under certain circumstances the use of volume rates by the railroads enables them. to hold traffic which would otherwise be lost, and to avoid needless dissipation of revenues, Properly employed, volume rates should benefit both the coal industry and the railroads, I do not, however, advocate the discarding of the carload as the basic rate-making unit. Far from it. Sound operating reasons dictate the making of rates based on car- loads, and the tradition of carload rates has a firm foundation in railroad operating costs, many of which vary directly with cars handled. In short, the carload was, Is and, in my opinion, will continue to be the basis for most rail rates on coal, as well as on other commodities. But change is an inevitable result of progress, and we should not be so bound by tradition that we are unwilling to try novel methods of ate making, should the circumstances require, The modern rate maker must, now and then, run the risk of being called an iconoclast if he is to keep up with the times. As T will point out, volume rates were for many years rejected by both the Interstate Commerce Commission and the railroads, But now both the Commission and the carriers have come to recognize that under proper circumstances and conditions volume rates are a powerful and effective tool.