Monopolies -- United States; Railroads and state -- United States
Another evil resulting from this railroad system, directly affecting the
producer, is the elevator and warehouse system, put in operation,
supported by, and prosecuted in the interest of, this monopoly. As a
necessity in shipping and handling grain and other farm products, there
must be at shipping points, as well as at the great grain depots,
warehouses, storehouses, and elevators. If these were owned and
controlled by individuals, unrestricted by railroad companies, they
would be of great benefit to the producer; but such is not the fact. Go
to any way-station on the roads, or to any of the more prominent points,
as well as to the great grain depots, and you will find an arbitrary and
oppressive rule adopted, which demands of the producer a further
dividend from his products. At unimportant points and way-stations, the
warehouses and elevators are built upon the company's depot grounds,
and, if not owned by the company, are built under an agreement that
there shall be a division of the receipts; and in order to make it
mutual, the elevator company, or warehouseman is to charge certain rates
on all grain passing through their hands; and the railroad company is to
receive on board their cars no grain that has not paid its duty to the
elevator or storehouse. Whether it is stored or not, whether it passes
through the elevator or not, this arbitrary toll or levy must be paid
before it can be shipped. If the farmer deliver it directly on board the
cars of the company, he must pay these charges the same as though he had
delivered it to the warehouseman. He cannot avoid this extortion, for
the only possible way he has to get his grain to market is to ship it
over the road, and this he cannot do unless he pays this charge. But by
far the greatest imposition is practiced at the great grain depots at
Chicago, New York, and other cities. The immense daily receipts at these
great depots demand immense warehouse and elevator facilities. Large
numbers of elevators and warehouses were provided and used--formerly by
individuals; and while warehousemen dealt individually with the public,
there was but little abuse; competition was sufficient to insure
reasonable charges. The owner of grain, upon its arrival at its
destination, could avail himself of any competition among warehousemen,
and select such as his judgment approved or his interest prompted.
Public-domain text, read in full here on John Shaqi.
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