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 simplest compromise in any dispute over rates between competing
centres is the concession of absolute equality or, as it is called, of
flat rates between all points irrespective of distance. This shifts
the burden from the carriers and places competition entirely upon
the shoulders of the merchants. Oddly enough, also, this result of
equal rates regardless of distance between various competing centres,
especially when they are secondary distributing or concentrating points
rather than original sources of traffic, may sometimes evolve naturally
out of commercial conditions imposed by tariffs built up upon the
basis of distance. The accompanying theoretical diagram, based upon
actual traffic conditions prevalent in Missouri river territory, serves
to illustrate the way in which, under certain circumstances, such
equalization of rates may take place. Two groups of cities are here
represented as though lying respectively along two river valleys north
of their separation at a point G. Let us call them the Mississippi
and the Missouri for purposes of identification. The starting point
is equality of rates from such a distant point as New York (O) to
all places along the Mississippi from A to G. Such equality properly
arises in theory from the substantially equal distance from New York.
In practice also, under the trunk line rate system,[98] such equality
prevails, inasmuch as the rates from New York to such a series of
Mississippi river crossings is fixed at 125 per cent. of the rate from
New York to Chicago. By a similar course of reasoning, namely, the
approximately equal distance from New York (O), rates from that place
to a second series of points along the Missouri river should be and are
in effect made equal. From these two facts it logically follows that
the balances of the rates from all points on the Mississippi river out
along an extension of their lines from New York toward the west should
also be equal. This is obviously in conformity with the mathematical
principle that equals subtracted from equals leave equal balances.
Thus the rates B X, D Y and F Z are compelled to equality. From this
relationship in turn follows still another. All rates from any point on
the inner series of towns to any point whatsoever on the outer western
series of places along the Missouri river must remain equal regardless
of distance. For each line from New York to A, B, C, D, etc., wishes,
of course, to participate in business not only on the direct extension
of its own line, but to as many other points as possible.[99] Without
some agreement, however, it would normally enjoy traffic only on the
direct extension of its own line. The point Y would most naturally be
reached by way of C, D or E, over the shortest routes. Competitors on
either side would similarly enjoy an advantage in more direct lines
from New York to the places immediately beyond them. Thus for business
from New York to Z, the more direct lines through E, F or G would
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