Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
A third cause of diversion of traffic is akin to the second; and
concerns the practices in pro-rating. Much circuitous transportation
is due to the existence of independent transverse lines of railway
which may participate in the traffic only on condition that it move
by an indirect route. This situation is best described by reference
to the following diagram. Let us suppose traffic to be moving by two
routes passing through points B and C, and converging on A, which
last-named point might be Chicago, St. Louis, New York or any other
railroad centre. Cutting these two converging lines of railway, we
will suppose a tranverse line passing through B and C. Obviously the
proper function of this railway is as a feeder for the through lines,
each being entitled to traffic up to the half-way point, D. But over
and above serving as a mere branch, this road, desirous of extending
its business, has a powerful incentive to extend operations. The longer
the tranverse haul, the greater becomes its pro-rating division of the
through rate with the main line. Traffic from C is of no profit to the
tranverse road so long as it is hauled directly to A. But if hauled
from C to the same destination by way of B, the profit may be enhanced
in two ways. In the first place the pro-rating distance is greater; and
secondly, such traffic from C not being _naturally_ tributary to the
main line B A but merely a surplus freight to be added to that already
in hand, the main line A B is open to temptation to shrink its usual
proportion of the through rate in order to secure the extra business.
This same motive may on proper solicitation induce the other main line
C A to accept traffic from B and its vicinity. The result is a greatly
enhanced profit to the cross line and circuitous carriage of the goods
in both directions around two sides of a triangle. Only recently in a
case in Texas the Interstate Commerce Commission found that two roads
thus converging on a common point were each losing to the other traffic
which rightfully was tributary to its own line. In a recent case,
ninety-nine per cent. of the business from Chatham to New York was
moving over a route 249 miles long, when it might have gone directly
only 144 miles, by pro-rating with another road.[288] Our illustrative
examples are not fanciful in any degree.[289]
Public-domain text, read in full here on John Shaqi.
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