Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
Few standard railway tariffs in the United States develop beyond the
point covered by the preceding paragraph. Many of them are unable even
to reach this stage of logical growth. In the South, for instance, they
have never got beyond the stage of progressively rising local rates,
with independent and often radically reduced charges at all large towns
or competitive points.[74] Each traffic manager, particularly since
the effective prohibition of working agreements between competing lines
by the Trans-Missouri Freight Association decision of the Supreme Court
in 1896, has been left to work out his own salvation, not aided by, but
in spite of, the efforts of his rivals. There is, nevertheless, one
example of further development in the so-called trunk line territory,
lying east of the Mississippi and north of the Ohio and Potomac rivers.
Conditions here, in general, are most favorable by comparison with the
West and South. Both population and traffic are dense, and the state
legislatures are conservative in making grants for the construction
of new lines. The companies are historically mature. The good fruits
of coöperation had already appeared in the evolution of a scientific
and logical scheme, long before such coöperative action had been
frowned upon by the law and the courts. All the railways in trunk line
territory have worked in harmony, so far as general classified local
tariffs are concerned--however much they may have fought one another
over differentials to seaboard cities, or export and import rates.
Their system is comparatively simple in principle, although it has
required the experience of many years to work out in detail. Fully
described elsewhere,[75] it will suffice for present purposes to say
that all rates from intermediate points between Chicago and New York,
are fixed at a definite proportion of the Chicago-New York rate both
for east-and westbound shipments. Thus, for instance, as shown by the
map of trunk line rate distribution, at page 365, the rate from Detroit
to New York is seventy-two per cent. of the Chicago-New York rate.
The percentages from the following points are as indicated, namely:
Cincinnati, eighty-seven per cent.; Indianapolis, ninety-three per
cent.; Grand Rapids, ninety-six per cent.; Peoria, Ill., one hundred
and ten per cent.; Louisville, Ky., one hundred per cent.; Milwaukee,
one hundred per cent.; and even points in Canada, such as Toronto,
seventy-eight per cent., etc. Every place, no matter how small, has
a certain percentage of the New York-Chicago rate assigned to it.
This rate changes with any variation of the standard or basic charge.
Thus when the Chicago-New York rate, first-class, is seventy-five
cents, the rate from Indianapolis is ninety-three per cent. of that
figure. Any change of Chicago-New York first-class rates modifies
every intermediate rate in exactly the same proportion. This was well
exemplified in the rate wars of 1893. These percentages have been
Public-domain text, read in full here on John Shaqi.
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