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 there was a grand outcry at X. Their trade was
discriminated against in the worst possible way--so they
said--and they complained to the railroad. But the railroad men
fell back on the logic of facts. The points were as follows: 1.
A whole carload at seventy-five cents would not pay expenses of
handling and moving. 2. At higher rates than seventy-five cents
they could not get a whole carload, but only half a carload;
and half a carload at a dollar rate (the highest charge the
article would bear) would not pay expenses. Therefore, 3. On
any uniform rate for everybody, the road must lose money,
and 4. They would either be compelled to take the oyster car
away altogether, or else get what they could at a dollar, and
fill up at seventy-five cents. There was no escape from this
reasoning; and the oyster men of X chose to pay the higher rate
rather than lose the service altogether."
The logic of this oyster case seems convincing in its simplicity. But
it presents more complications than appear at the outset.
[Illustration]
First of all, what is the nature of the competition at the more distant
point which is alleged to "compel" the lower rate? Is it merely of
rival routes or of competing markets? It will be advisable to keep the
two distinct so far as possible. Under the first heading, competition
of routes, the subjoined sketches represent two possible situations. In
both instances, however, Y, enjoying the lower rate, is more distant
from Philadelphia than X. The difference between the two arises from
the fact that in the one case X is nearer Philadelphia than Y on a
roundabout line; while in the other X is actually nearer than Y by
the shortest direct route. We may safely assume that the compelling
competition alleged at Y as justifying the lower rate is by rail; as,
the commodity being a marine bivalve, both places presumably enjoy
equal facilities for water carriage. At all events, assuming that we
have to do with competing rail routes alone, what differences obtain
between the two sets of circumstances above sketched? Not insignificant
inequalities in the length or power of the two routes are implied by
the diagrams. They are supposed to represent substantially different
lines, which may, for the purpose of the argument, be denominated
strong, natural, or standard, and weak, unnatural, or abnormal,
respectively, so far as the particular traffic in hand is concerned.
That this distinction is not irrelevant, but frequently of determinant
force, is shown by an analysis of concrete cases which have arisen for
adjudication.
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