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 sixth and final reason for diversion of traffic from the direct line
may be partly sentimental, but none the less significant. It concerns
the question of competition at abnormal distances. We may cite two
railroad witnesses, who aptly describe the situation. "We can haul
traffic in competition, and we frequently do, as I stated, at less
than cost, or nearly so, in order to hold the traffic and our patrons
in certain territory--Kansas City for instance--but we do not like to
do it."[303] Or again, "The Charleston freight is not legitimately
ours.... We make on these through rates from Chicago to Charleston, for
instance, scarcely anything. But it is an outpost. We must maintain
that or have our territory further invaded."[304] In other words, the
circuitous or over-long distance haul is a natural though regrettable
outcome of railroad competition.
* * * * *
What are the effects of this American practice of unduly disregarding
distance as a factor in transportation? Not less than five deserve
separate consideration in some detail. It inordinately swells the
volume of ton-mileage; it dilutes the ton-mile revenue; it produces
rigidity of industrial conditions; it stimulates centralization both of
population and of industry, and it is a tax upon American production.
One cannot fail to be impressed with the phenomenal growth of
transportation in the United States, especially in recent years.
It appears as if its volume increased more nearly as the square of
population than in direct proportion to it.[305] But do these figures
represent all that they purport to show? Every ton of freight which
moves from Chicago to San Francisco over a line one thousand miles too
long adds 1000 ton miles to swell a fictitious total. Every carload
of cotton goods hauled up to Chicago to be redistributed thence in
the original territory and every ton of groceries or agricultural
machinery exchanged between two regions with adequate facilities for
production of like standard goods contribute to the same end. How large
a proportion of this marvellous growth of ton mileage these economic
wastes contribute can never be determined with certainty. That their
aggregate is considerable cannot be questioned.
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