Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
By this time it will be observed that in the discussion of the
Chattanooga case we have drifted far beyond the mere competition of
rival routes. Commercial competition, which affords the justification
for grouping all these twenty-three important southern cities together,
is a topic to be treated elsewhere by itself. The difficulty in many
of these cases is to distinguish between the really strongest line and
the one which is merely the shortest. Upon this point one's decision of
the Chattanooga case might actually depend. The Louisville & Nashville
contends that Nashville even today is, from an operating point of view,
nearer New York than Chattanooga, although the distance is 212 miles
more. All the trunk lines compete at Ohio river points, and bring them
relatively much closer to New York. The density of traffic on these
lines is far heavier than on the air line to Chattanooga.
It happens that Chattanooga meets this allegation of greater trunk
line density and cheapness by proof of the still greater economy
of operation by the coastwise steamers to southern ports, traffic
coming thence north by rail through Chattanooga. The appearance of
water competition in any of these cases always introduces an almost
insuperable difficulty in the way of comparison of long and short
lines. Shipment by vessel differs from rail carriage, primarily in
the relatively high terminal costs, the absence of all maintenance of
way costs, and the low cost of actual propulsion. With a cargo once
securely stowed, the distance traversed by a vessel is of relatively
little importance, much less so than in the case of carriage by rail.
A powerful factor in determining water rates, moreover, especially
by sea, is the absence of local traffic. Wharves and terminals being
expensive to build and maintain, and the method of loading in a ship's
hold not being conducive to ease in access or assortment, vessels
are confined largely to bulk traffic at a few important points. The
expenses of operation must be more uniformly distributed over the cargo
than in the case of a trainload. The water line, therefore, is deprived
of one advantage in cutting rates. It cannot, so readily as a railroad,
recoup itself for losses on competitive business or at competitive
points by falling back upon its earnings from way stations.
From all these considerations it not infrequently comes about that,
unlike carriage by rail, the longest way round may indeed be the
shortest way home. This is clear in the highly involved Wichita,
Kansas, cases.[216] Wichita, a commercial centre of southern Kansas,
is 200 odd miles southwest of Kansas City. Its all-rail rates from
the East are higher than to Kansas City. Yet by the water route from
New York to Galveston and thence up by rail, as compared with Kansas
City, it is a nearer and intermediate point. The Interstate Commerce
Commission well expresses the difficulty:
Public-domain text, read in full here on John Shaqi.
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