Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
Aside from the palpably dishonest secret rebating, the real root of
the difficulty with many of the other big shippers beside the Standard
Oil Company,--and an abuse moreover exceedingly hard to correct,--is
the open adjustment of rates from competing centres of manufacture
or distribution in such a way as to confer favors. The Bureau of
Corporation's report on the Transportation of Petroleum Products deals
fully with this. Relative rates, as above stated, always seem to favor
Chicago (Whiting) as against the centres of independent refining such
as Cleveland, Pittsburg, or Toledo. Formerly, before the great refinery
was established in 1890 at Whiting,--which, by the way, produces
one-third of all the kerosene used in the United States,--the roads
from these centres made joint through rates all over the country. They
still do so on many other commodities. But on petroleum products they
have been withdrawn. The result is that everywhere, except where they
can secure entrance by water, the disability in rates against the
independent refiner is most effective. That much the same conditions
prevail in other lines of business is affirmed on the highest
authority. The _Railway Age Gazette_ has repeatedly protested against
the pressure which is now brought to bear against the carriers by such
organizations as the Illinois Manufacturers' Association to substitute
open but discriminatory local rates for the old secret favors upon
which the great shippers throve for so many years. Fortunately,
however, this situation in some cases relieves the Federal government
of the burden of detection of maladjustments of this sort. For the
communities aggrieved are constantly on the watch to protect their
interests against rival cities. This factor clearly appears in the
sugar and cement lighterage cases in 1908.[183] Carriers at New York in
order to equalize rates with carriers serving Philadelphia refineries,
grant "accessorial allowances" for the use of lighters or for cartage,
in order, as they aver, to overcome the disability against their
clients. But Philadelphia shippers are ever on the alert to detect
such favors given at New York; and substantially aid the government in
eradicating the evil. In the grain elevator allowance cases, likewise,
at Omaha and Council Bluffs in 1906-1909, not only unfavored shippers
at these points but St. Louis grain merchants as a body, intervened as
complainants against the system. The powerful motive of self-interest
thus invoked is of great service.
Public-domain text, read in full here on John Shaqi.
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