Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
for the communities engaged in the business. On the other hand the
Southern Pacific is more largely interested in the local development
of manufactures in California. The Rock Island by maintaining a lower
rate on flour than on wheat, would tend to hold its clients in the
field. The Southern Pacific, on the other hand, by securing the reduced
rate on the wheat from Kansas would materially advance the welfare
of its constituents. Thus the rivalries of the competing localities
immediately become the direct and immediate concern of rival railways.
Cases precisely analogous in principle to those concerning the
relativity of rates on grain and grain products have troubled the
carriers for years in respect to the rates upon cattle and packing
house products.[112] A low rate on cattle as compared with beef favors
Chicago today as against Missouri river points, the latter being
nearer the cattle ranges; just as a generation ago it enabled cattle
to be brought to New York and Boston to be there slaughtered and sold
on the spot. The history of this controversy throws much light upon
the difficulties of rate making in practice. Originally the railways
encouraged cattle raising by a rate which was only about one-third of
the rate charged for beef. Slaughtering was carried on in the East
adjacent to the great markets. To this policy the western packers
objected strenuously. They demanded a relatively low rate on their
finished product in order to enable them to bid against the local
eastern slaughter houses. The stockmen, on the other hand, naturally
desired a continuance of the low rate on cattle, as it perpetuated
competition between eastern and western buyers. The controversy between
the stock raisers and the packers was thus shifted onto the shoulders
of the traffic managers of the railways. The dispute culminated in
1883 when the Trunk Line Association appointed a special committee to
consider what the proper adjustment should be.
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