Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
going beyond Chicago or not? In one period of three months, 1098 cars
thus through billed to New York were turned over at Chicago to a belt
line road; and only 468 actually went on to that destination. About
sixty per cent. of the traffic was being rebated by this means. Very
complicated arrangements of this sort were rife in the Missouri river
rate wars on grain in 1896. This was known as the "expense-bill"
system; or "carrying at the balance of the through rate."[168]
Many services or facilities are worth as much to a merchant as a direct
refund in cash. He may be given free cartage. This was a very common
expedient in the early days; being fully considered by the Interstate
Commerce Commission.[169] Or free storage on wheels or in freight
houses may be utilized as a cover for favoritism. A low carload rate
might be given, and then the goods be held, storage free, by the
railway at some central point; to be subsequently delivered piecemeal
as sold. The dealer would be relieved of all expense for warehousing
as well as of high less-than-carload rates from the initial point of
shipment. The competitor who paid the less-than-carload rate on an
equal volume of business would be sadly handicapped. Cases are on
record where fish was thus stored free from November to February,
being reshipped on order in small lots. Or an excessive allowance might
be made by the railway for some service or facility afforded by the
shipper. The beef interests first got their hold upon the carriers by
demanding liberal rebates in return for acting as "eveners" in the
partition of traffic between the trunk lines about 1873. Complaint
against excessive allowances to favored grain elevator owners, was
common all through the West for years. The elevator allowance cases
before the Interstate Commerce Commission in 1906-1910 concerning
practices on the Union Pacific lines illustrate the delicacy of the
issues involved.[170]
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