Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
The jobbing or wholesale business of the United States exemplifies the
most highly involved and complex details of commercial competition.[91]
In this field it appears most clearly that, as is so often alleged,
railway traffic managers hold the welfare of entire communities, as it
were, in the palms of their hands. In all the cases heretofore cited,
great natural forces outweighed the purely personal and human ones.
Soil, climate and mineral resources more or less completely determined
the final outcome of commercial competition. But the distributive
business of a country is more largely artificial. It is more subject
to human control, and may be influenced by personal considerations.
Shall the economically dependent southern planter be supplied with
manufactures of all sorts,--from harnesses to tin dippers--from
mid-western cities like Cincinnati and Chicago or from eastern centres,
such as New York and Baltimore? This is the underlying economic issue
raised in the notable Cincinnati Freight Bureau Case in 1894; in the
course of whose determination the Supreme Court of the United States
raised the more immediate and pressing question of the authority of the
Interstate Commerce Commission to regulate rates at all. In the dust
raised by the controversy over this purely legal question, the basic
economic dispute was lost to view.[92] Shall the people of the Pacific
slope be supplied with hardware and analogous products from their own
large cities which buy at wholesale from the East, break bulk at San
Francisco or Seattle and ship out to smaller towns in less than carload
lots; or shall the distribution take place at the hands of jobbing
houses located several thousand miles away at Chicago or St. Louis?
This is the economic dispute raised in the St. Louis Business Men's
League case.[93] The very existence of San Francisco as a commercial
centre may depend upon it. For the primary and secondary operations of
commerce are often complementary. At the large cities, concentration
of raw staples moving inward naturally entails back loads outward at
low rates for manufactured goods distributed by jobbers. Or, taking
the smaller places, the farmer will of necessity buy his cotton cloth,
sugar and coal in the town to which he drives by wagon to deliver his
cotton, corn or wheat.[94]
Public-domain text, read in full here on John Shaqi.
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