Monopolies -- United States; Railroads and state -- United States
It would look as though the combinations of this oligarchy were perfect;
that the system of extorting from the people and robbing the producers
could not be improved, and that these most unscrupulous oppressors ought
to be satisfied. Such is not the case. Either because they wish to have
fewer numbers with whom to divide the spoils, or because they have
reduced the value of their stocks and bonds until it is necessary that
their roads pass under other management, or because they must have still
higher rates for transportation, of late a new combination for
transportation has been formed, called Dispatch agencies or companies--a
kind of "Credit Mobilier" arrangement. These dispatch companies are
comparatively new in the west, and we know but little of their
organization save that it costs still more to ship with them than with
railroad companies. These dispatch agencies are not formed to compete
with railroad companies in the transportation of freights, nor are they,
in any measure, rivals or opponents of railroad companies. In the nature
of things there must be perfect accord between these two corporations,
for the railroad companies could and would at once destroy the dispatch
business, if the same in any manner conflicted with the interests of
railroad managers. The dispatch companies depend entirely upon the
railroad companies for cars, locomotives, and railroads for carrying
their freight. Enough is known of railroad management to satisfy the
most skeptical, that the organization of dispatch companies is for
purposes other than the more expeditious transportation of freight.
These dispatch companies are composed mainly of railroad directors and
superintendents, with a few figure heads to represent the outside world.
After the formation of the dispatch companies, contracts for the use of
cars, locomotives, and roads are made upon the same principle and for
the same objects as in the case of the Union Pacific railroad company
and the Credit Mobilier company. The directors of the railway company,
representing the company, contract with themselves as a dispatch
company, to supply themselves cars, locomotives, and roads for the
prosecution of the business of the dispatch company, and for a certain
consideration agree to pay themselves, as directors of the railway
company, for what is so leased to themselves as a dispatch company; and
then in order to promote the business interests of the dispatch company,
and secure to themselves as its directors higher rates for
transportation of freight, they make it a point at all times to give the
preference to the said dispatch company. As a result of this arrangement
the dispatch companies monopolize the principal part of the business.
They are in appearance opposition lines to the roads on whose tracks
they are carried, and are really so, when the interest of the railroad
stockholders not concerned in the dispatch companies are considered.
Public-domain text, read in full here on John Shaqi.
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