Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
Paradoxical as it may seem, a certain rigidity of rate schedules is a
natural consequence of the very delicacy with which individual rates
are adjusted to meet the demands of trade. Each road is jealously
and aggressively alert to protect its own constituency regardless
of the rights of others. No single traffic manager is free to grant
reductions of rates, even when considered to be just, by reason of
the opposition of competing lines. The consent of every one of these
interests is necessary in order to insure stability, and the penalty
for acting independently may be a rate war, disastrously affecting
relations with connecting lines. Thus, for example, in the South the
Southern Railway for some time was willing to concede, as a measure
of justice, a reduction of rates on cotton from Mississippi river
points to the mills in North and South Carolina.[127] The growth of
the textile industry had resulted in a demand for cotton far exceeding
the production of the Carolinas. At the same time the increasing
attention devoted to manufacturing of a higher grade had forced the
manufacturers to draw upon the long-staple supplies of the Mississippi
bottom lands. The Piedmont cotton was too short in fibre for the finer
sort of goods. The Carolina mills were, however, compelled to pay a
higher rate upon cotton from such points as Memphis than was paid for
the long haul up to New England. Thus, for instance, as late as 1900,
rates were fifty-nine cents to South Carolina, while they were only
fifty-five and one-half cents per hundred pounds from the same points
to New England mills. This was obviously unjust. But the Southern
Railway alone, interested in the welfare of its Carolina clients, was
powerless to act without the consent of its competitors operating
from Memphis west of the Alleghanies. These latter lines, having no
interest in the southern mills and a unity of interest in the long haul
traversed to New England, sought to prevent an equalization of the
differences. Controlling rates also on cotton for export to various
seaports, they were for a long time able to prevent a change. On the
other hand, in the same territory the railways operating south from
Cincinnati and Louisville desired to reduce rates on manufactured
products from the Central West.[128] These were the very lines which
in the former instance prevented the reduction of cotton rates on the
Southern Railway to Carolina points, by threats to meet such reductions
by cutting their own rates on cotton going north through the Ohio
gateways. Yet a reduction of their rates on manufactures for building
up western trade threatened the business of the Southern Railway, which
had been mainly interested in the traffic from Atlanta seaboard points.
It may readily be seen that this situation, extending to practically
every important point, "jacked up" all these rates, not because of
their inherent reasonableness and not even because the railways
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account