Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
Does not this constitute local discrimination against the middle
western cities? This was one of the main contentions in the St. Louis
Business Mens' League case. Being one thousand miles nearer San
Francisco, it demanded recognition of that fact in its tariffs. The
difficulty is accentuated when both eastern and western point rates
are considered together. St. Louis enjoys no lower rate than New
York, although one thousand miles further east; and inland points in
the Rocky mountain area may be one thousand miles further east than
San Francisco and yet pay a higher rate. Thus it is possible to lop
off one thousand miles at each end of the line without affording any
recognition of it in the tariffs. The situation is too involved to
discuss in detail in this place; but one finds it difficult to avoid
the conclusion that the whole system will demand revision before
long. Geographical conditions are immutable. Trade conditions are
not. Perhaps it was inevitable that the former should by force of
circumstances have been somewhat overlooked during a period of rapid
growth. But, as commercial affairs approach a condition of stability
and permanence, the matter will call for most careful examination.
[Illustration]
Constant rates applied over long distances on the same line almost
inevitably tend to pass over into a system of equality of rates over
_different lines_.[230] The necessity was evident enough in the
Milk Rate case. This phase of the matter may theoretically best be
discussed by reference to the following diagram. Suppose A, B, C, and
D to represent any four inland "common points." It remains to show
how it comes about that they all finally enjoy equal rates to all
four seaports, regardless of location. Each appears to be naturally
tributary to some one of the seaports by a dominant or short-line
route. In each instance this route properly rules the rate. Moreover,
the four seaports may be considered for traffic purposes as equally and
interchangeably distant from one another without regard to location.
This follows from the fact that, except in extreme instances, rates
by water do not vary according to distance, so small is the cost of
mere propulsion by comparison with the terminal costs. In other words,
the rate is the same from Wilmington to Brunswick or Savannah as to
its next neighbor Charleston. From this it follows, further, that
Wilmington, Savannah, and Brunswick can all reach B--the point to which
Charleston is nearest--on even terms. They may each have a direct line
to B; but, as compared with a possible combined low water rate to
Charleston and a low direct rail rate inland to B, the Charleston route
may be at least able to hold its own. All three outside competitors,
then, are on even terms with one another in respect of access to B.
But how does Charleston stand towards B as against the field? We have
already concluded that a roundabout route must be allowed to meet,
though not to undercut, the ruling rate.
Public-domain text, read in full here on John Shaqi.
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