Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
The use of the industrial railroad as a means of preferential treatment
still occasions difficulty.[195] The case is simple where but one
shipper makes use of the terminal plant; but where a number of shippers
may utilize it jointly, it becomes difficult to draw the line between
pro-rating allowances and actual rebates. The Manufacturers' Railroad
Company, with twenty miles of track, four locomotives and one hundred
and ten employees, serves a considerable manufacturing section in
South St. Louis. A majority of the stock of this terminal railroad is
held by persons controlling the Anheuser-Busch Brewery. The enormous
traffic of this concern, equal to about one-thirtieth of the total
tonnage of St. Louis, is handled over the line of the Manufacturers'
Railway. Almost nine-tenths of its business consists of shipments of
beer; but in 1910 some 5,424 carloads belonging to other patrons moved
over its rails. For this terminal service the Anheuser-Busch Company,
through the Manufacturers' Railway, got a very substantial allowance
for the service rendered. For example, in one month on ten carloads of
beer, the Louisville & Nashville allowed $45 out of a total revenue
of $391.60 for moving the traffic something less than four thousand
feet. The disparity is obvious between this allowance and the balance
remaining as compensation for moving the traffic 477 miles, including
three first-class railroad tolls and terminal charges at the other
end.[196]
A prime difficulty is to determine whether unduly low commodity rates
amount practically to special favors granted to large shippers. Much
evidence recently tends to show that the trusts enjoy advantages of
this sort not extended to other competitors. The Steel Corporation,
through its ownership of railroads and steamships, certainly has a
great advantage over its rivals.[197] But other trusts not controlling
common carriers of their own, are also accorded what seem to be unduly
low rates upon their products. Recent evidence before the Interstate
Commerce Commission seems to show that sugar, beef, and coffee do
not bear their proper share of transportation costs.[198] Copper,
the product of a powerful trust, enjoys a lower ton mile rate than
grain,--a rate, despite its high intrinsic value, actually below that
on soft coal.[199] The discrimination is too palpable to be passed over
without explanation.
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