Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
Conditions corresponding to diagram A have frequently given rise to
complaints before courts and administrative tribunals. An interesting
illustration is afforded by the Hillsdale ice case in Michigan.[204]
Ice was moved from this town to Springfield and Columbus, two
neighboring Ohio cities, over several different routes. (See map on
next page.) To Columbus the shortest road was by the Hocking Valley
Railroad directly through Toledo. Another route by way of Sandusky
existed; and even a third through Sandusky, thence over to Springfield,
and in by the side door, so to speak, to Columbus. This last routing
was due to the fact that the Big Four road from Sandusky diagonally
across to Springfield had no access to Columbus except through a branch
line from Springfield. This last-named zigzag route was 295 miles in
length as against 190 miles by the direct line through Toledo. To
Springfield, on the other hand, no direct route from Hillsdale existed;
but freight might move either _via_ Sandusky by the Big Four road or
through Sandusky and around by way of Columbus. The shortest of any of
these lines to Springfield, however, was twenty-nine miles longer than
the shortest line to Columbus. This established Columbus, therefore,
as normally the nearer point. Complaint arose from the fact that ice
carried over the zigzag route to Columbus actually passed through
Springfield and forty-five miles beyond to reach its destination. For
such shipments over the Big Four road, Springfield instead of Columbus
was the nearer point. But, contrariwise, for ice coming to Springfield
through Columbus, the latter in turn became the intermediate
point.[205] The specific complaint was that the rate by all routes
to Springfield was one dollar per ton, while to Columbus it was only
eighty cents. Originally, the rate was higher ($1.25 per ton), but was
the same to both points. Is this a case of local discrimination or not?
[Illustration]
The Big Four road operating through Springfield answered that it was
not responsible for the eighty cent rate to Columbus; that this was
made by the direct line; and that it obviously must meet this rate or
withdraw from the ice business. It alleged, moreover, that the rate of
one dollar was reasonable in itself as compared with other rates in the
same territory, and was in fact substantially less than it formerly
was; nor would its withdrawal from Columbus ice business evidently be
of any advantage whatever to Springfield, but would indeed deprive it
of some small contribution to joint expenses of operation on all its
tonnage. No evidence being offered that Springfield was positively
injured by this adjustment, the Commission properly dismissed the
complaint.
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