Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
Suggestive illustrations of lower rates at the more distant point
than are under the circumstances actually "compelled" by competition
of routes are to be had. In a recent case[212] the rates on bananas
from Charleston, South Carolina, to Danville and Lynchburg, Virginia,
respectively, were called in question. The traffic moved through
Danville on its way to Lynchburg, sixty-six miles beyond, at a rate
of forty-three cents to Danville as compared with a rate of twenty
cents to Lynchburg. The reason for the low rate at Lynchburg was the
presence of a rival route,--bananas, coming in through Baltimore. But
the lowest rate "compelled" by this competition was in fact thirteen
cents higher than the Danville line charged at Lynchburg. In other
words, the long-distance rate was that much lower than it need have
been. This instance is analogous in another way to our oyster case,
inasmuch as the demand at Danville being limited, one-half of the
same carload paid the Danville rate of forty-three cents, while the
other half went on at the lower rate of twenty cents enjoyed at the
more distant point. It is in this connection, of rates unduly low at
so-called competitive points, that the partial weakness in the railroad
arguments in many of the southern basing point cases appears. Since the
Supreme Court of the United States had held that competition at the
more distant point justified its lower rates, the Interstate Commerce
Commission was powerless to give effect to whatever opinion it might
entertain that at times it is neither water nor commercial competition
which actually brings about the low rate at the basing point; but
merely a consensus of opinion among carriers that that place will
respond quickly enough to favors granted, to make it worth while to
try the experiment.[213] This conviction is vastly strengthened, of
course, since entire monopoly among all the southern railroad lines
has become an established fact. It is an absurdity to speak longer of
any competition between rail carriers existing in a large part of this
territory.[214]
[Illustration]
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