Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
Personal discrimination may be as effective upon competition through
denial of facilities to some shippers, as through conferring of special
favors upon others. Practices of this sort have been quite common in
the coal business, especially in the matter of furnishing or refusing
to furnish an ample supply of cars or suitable spur tracks to mines. In
the well known Red Rock Fuel Company case in 1905,[178] the railroad
definitely announced its policy, "not to have a lot of little shippers
on its line who would ship coal when prices were high and then shut
up shop and go home and let the large shippers have the lean years."
The development of over 4,000 acres of coal lands was thus denied in
favor of the large companies, until the Interstate Commerce Commission
took the matter up. A year later came the startling revelations upon
the Pennsylvania Railroad as to the practice of discrimination in
furnishing cars to coal mines.[179] A comprehensive investigation by
the company itself resulted in the discharge of a number of high
officials. It appeared, for example, that the assistant to President
Cassatt had acquired $307,000 in stock of coal companies without cost;
that a trainmaster for $500 had purchased coal mine stock which yielded
an annual income of $30,000; and that one road foreman was given three
hundred shares of the same company stock for nothing. In all these
cases the object was to secure not only an ample supply of cars for
the favored companies, but perhaps even the denial of suitable service
to troublesome competitors. In this regard, the old practices of the
Standard Oil Company in the eighties are recalled. Not only, as in
the celebrated Rice case,[180] did it demand heavy refunds on its own
shipments, but it also compelled the imposition of a surtax on its
competitors' traffic which was to be added to its own special allowance.
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