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 most extreme instance of uniform or postage-stamp rates applied
over long distances occurs in the transcontinental tariffs from
different points in the East. These differ radically from the
adjustment of rates between different points on the Pacific slope,
already described. At the far western end the lowest rates are accorded
to coast cities, because of water competition by sea. Rates to interior
points progressively rise by the addition of locals inward toward the
interior. The rates thus compelled by water competition are accepted
by the all-rail lines. Thus the Pacific coast end is practically built
upon a basing line. It might be expected that in consequence of water
competition by sea a similar system would prevail at the eastern end
of the line; that rates to the Pacific coast from interior cities
would rise progressively according to distance inland, until at all
events the direct all-rail charge became as low as by the combined
rail-and-water rates. But such is not the case, and for two reasons.
The first is that in the East interior cities are large and powerful
factors in trade. There were no such interior cities in the Far
West, until Spokane came into its own. These inland eastern cities,
Pittsburg, for example, demanded equality of opportunity with the
seaboard cities in Pacific coast trade. They succeeded in obtaining it
by a grant of as low rates as New York or Boston enjoyed. In the second
place, all the Pacific coast carriers enjoy monopoly as far east as the
Missouri river. But east of that line there are many routes interested
in middle western cities, but having no interest in those in the East.
They, too, have insisted upon giving their clients in such places as
St. Louis and Chicago as low rates as Philadelphia or New York. Little
by little the equality of rates was extended until for many years
the blanket rate has covered the entire United States east of the
Mississippi river.
Public-domain text, read in full here on John Shaqi.
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