Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
"It is quite probable that the actual cost of transporting
cotton piece goods from New York to Wichita _via_ Galveston
does not exceed that of carrying them from New York to
Kansas City via the cheapest route. The all-rail haul is to
the latter point 1,300 miles and over. The ocean and rail
movement involves a rail carriage of from 1,100 to 1,300 miles,
depending upon the route selected. If the goods move through
some Gulf port, there is a rail carriage of not less than 850
miles. If, therefore, the rate were to be measured by the
expense of the service, it is probable that Wichita would today
enjoy as low a rate as the Missouri river."
The Wichita complication, moreover, works both ways. Wichita and Kansas
City form two angles of a narrow triangle with its apex at the Gulf
ports; but the distance from Kansas City is longer than from Wichita.
Railroad competition brought it about, however, that the rate on export
grain from Wichita _via_ Kansas City to the Gulf came to equal the
rate from Kansas City to the Gulf _via_ Wichita. But the former was a
much longer and more roundabout haul; and, moreover, was less than the
shorter haul rate from Wichita to the Gulf direct. The analogy to the
Hillsdale case, above-described, will appear clearly on inspection of
the map.
Summarizing the results so far reached, in all that concerns the
two sorts of cases considered in the preceding paragraphs, our
conclusion is that, when competition by rail at the distant point is
alone present, and when the nearer point is on a roundabout route, a
railway "is entitled to carry the traffic past X to Y (Philadelphia)
for considerably less than nothing"; but, when the nearer point is on
a direct line, the case is debatable. Proof that normal competition
compels the lower rate at the remoter station must be uncommonly clear
and conclusive. In other words, the facts that the rate at Y is not
unduly low and also that the rate at X is not unreasonably high must
both be firmly established.
A distinct class of cases of local discrimination is suggested by
the recent case of Montgomery, Ala., in the United States Commerce
Court.[217] These like other cross line cases, akin to that of Wichita,
Kansas, above-mentioned, arise in connection with practices as to the
division of joint rates. They will be discussed in connection with
pro-rating in our second volume.
Public-domain text, read in full here on John Shaqi.
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