Monopolies -- United States; Railroads and state -- United States
One of the great evils resulting from this bonded subsidy system of
building railroads, is that it gives to those who manage them the
control of the whole carrying trade of the country, and enables them to
impoverish the great agricultural population of the west and south. The
wealth of the United States lies in its agricultural products. The
greater portion of the people are engaged in agricultural pursuits. Good
markets and cheap freights are of the utmost importance to agriculture.
However abundant may be the crops, unless a market can be reached
without a sacrifice of one-half the product in the shape of freights and
commissions the husbandman will be impoverished. If the farmers, the
tillers of the soil, do not receive a fair remuneration for their work,
all other industrial interests will suffer with them; anything that
tends to deprive the producer of the value of his product, tends to the
impoverishment of the whole country. Any system of laws, regulations, by
government, or combinations of men, or corporations, that are oppressive
to the producer, oppress the whole people. It matters not whether these
oppressions are in taxes, tariffs, or charges for transportation of the
farm product; no matter in what shape it comes, the result is the same.
The great oppression now being practiced upon the people is in the
enormous charges made by railroad companies for carrying freight. The
charters, grants, subsidies, and privileges given to these companies
have enabled them to organize a powerful monopoly, through which they
demand and receive for transporting meats, grains, and other farm
products from the west to the eastern markets, at least one-half the
value thereof. The charges of these monopolies are arbitrary, and often
fixed by the value of the different kinds of grain carried by them. For
instance, they charge one-third more per ton for carrying wheat from the
west to the east than for corn and oats; it being worth more in market,
they ask a larger dividend from it. It can be carried as cheaply as oats
or corn, but, because of its value, will bear a greater charge, and
still leave one-half of its value for the producer. There is no good
reason why a railroad company should charge thirty cents per hundred for
carrying wheat from Muscatine (Iowa) to Chicago, when it charges but
twenty cents for carrying oats and corn over the same road, the same
distance. Yet such is the fact. Those who are in the interest of these
monopolists talk about cheap freights; they argue that railroads can
transport freights much cheaper than it can be done over ordinary
highways. Let us turn again to the Railroad Manual, and see how the
matter is treated. Says the author: "The cost of transporting Indian
corn and wheat over ordinary highways will equal twenty cents per ton
per mile. At such a rate, the former will bear transportation only 125
miles to a market where its value is equal to seventy-five cents per
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