Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
Of course in order that any change of rates should be reflected in
prices, all carriers must of necessity agree upon the matter. The price
is made by the least expensive source of supply. So that any carrier
refusing to raise rates, might aid in the continuance of an already
established price. Under conditions of transportation prevalent in
the United States twenty years ago, the likelihood of an increased
freight rate becoming a tax upon the community, was lessened by the
probability that either by means of secret rebates, or by special
and perhaps open commodity rates, some roads might choose to protect
their clients against enhancement of prices. Markets were local--not
reached by great systems operating from remote sources of supply.
The policy of the northern transcontinental lines in making lumber
rates from Oregon to the Middle West, might be quite independent of
any policy in force on the southern hard pine carrying roads. But
under present day conditions, the entire area of the United States is
one great market. Hence, with rebates eliminated and with practical
monopoly established through actual consolidation, control or harmony
of policy, the carriers have the consumers much more completely at
their mercy. Only two safeguards for the public interest remain. One is
government regulation, or at all events supervision, of charges. The
other is "enlightened self-interest"--which in transportation matters
means a full appreciation of the possibilities and limitations in the
application of the value of service principle to the determination of
rates.
Public-domain text, read in full here on John Shaqi.
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