Monopolies -- United States; Railroads and state -- United States
How can the abuses of the transportation system be corrected? This
question is now having a practical test in Illinois, and is being
discussed throughout the country. It is being demonstrated that a _pro
rata_ tariff will not afford relief; and that some other means must be
adopted. What that may be, time will develop. No uniform _pro rata_
tariff would be just to either the companies or the people. The shipping
of way freights is always attended with more proportionate expense and
delay than at prominent and terminal points. The extensive shipper, who
loads a large number of cars for a single train, should be allowed more
favorable rates than the one who ships at some way station but one car
of freight at long intervals. The real cause of complaint is the
uniformly exorbitant rates charged for carrying freights, in connection
with the present warehouse and elevator system. The legislatures and the
courts are clothed with full power to prevent oppressive or unjust
charges for carrying freight. They care not how much per cent the
companies shall make upon their investments; but when their charges
amount to an abuse of their charter privileges the legislatures and the
courts can correct them. The rule established by railroad companies, to
force from shippers such rates as will pay interest or dividends upon an
amount of imaginary stock, is unjust. The process by which they increase
their stock to two or three times the amount invested is fraudulent. The
legislatures and the courts possess the power to compel railroad
companies to make a return of the actual amounts of money invested in
their respective roads, in order to determine whether their charges are
excessive and oppressive. Railroad companies being dependent upon state
legislatures for such grants as will enable them to construct their
roads, and being common carriers, the legislature can, by statute,
restrict the capital stock to the amount invested. If this course had
been adopted years ago many of the abuses now endured by the people
would have been prevented. Not only has the law-making power the right
to restrict the stock to the actual cost of the road, but it has also
the power to fix the maximum rates for transportation. Competition will
always have a controlling influence upon the price of any commodity, as
well as fixing the price of any species of services or labor. The
legislature has the power to enact statutes to prohibit the
consolidation of the business of railroad companies, or a combination
on their part to charge excessive tariffs; and the courts possess the
power to enforce the observance of such statutes by the infliction of
suitable penalties. In this connection the abuses practiced by the
dispatch companies may be considered. The railroad companies receive
their charters with the understanding and implied agreement on their
part that, as common carriers, they will deal honestly with the public,
and that they will furnish the necessary locomotives, cars, etc., for
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