Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
The question has forced itself forward constantly as to whether the
existence of the alleged discrimination in rates is merely a matter of
relativity in cost of operation or whether it inflicts positive injury
upon the nearer point. Would it benefit the nearer point if the lower
rate beyond were withdrawn? It is here that the complexity of some of
these cases of local discrimination becomes apparent. To understand
this phase of the matter, the factor of commercial competition, as
distinct from mere rivalry of routes, must be introduced. Hadley's
analysis of the oyster case is quite inadequate on this point. Rates
in that instance were on commodities (oysters) produced at practically
uniform cost at both X and Y. They were, moreover, rates _from_ two
places out to a common market. Would it, however, make any difference
if the controversy concerned the rates in the opposite direction;
or, in other words, from a common centre of distribution out to two
competing consuming points? Would it make any difference whether
the goods were to be consumed at X and Y; or were to be used as raw
material in manufactures at those two points; or were to be distributed
throughout the countryside from X and Y as jobbing centres? It is at
once evident that these issues are more complicated than in the first
case. The two points X and Y being commercial and industrial rivals, is
it not possible that the growth of one may take place at the expense
of the other? At any given time there is only a fixed demand for the
goods consumed, manufactured in or redistributed from the two places.
Trade won by one is quite lost to the other. Of course, in a measure,
this might also have been true of the oyster production. But, inasmuch
as in that case the rate from Y was not affected by the entry of X,
its prosperity would not probably be disturbed. The Hillsdale ice case,
above described, is also one where the commodity (ice) is of relative
unimportance for Columbus and Springfield, respectively. How would
matters stand if the rates in question were on lumber or coal for
manufacturing purposes? The difference, no doubt, is merely of degree
and not of kind. Magnitudes, however, must not deceive us. The rights
of Kathleen or Danville are just as sacred as those of Youngstown and
Pittsburg.
[Illustration]
Public-domain text, read in full here on John Shaqi.
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