Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
In the fifth place, every waste in transportation service is in the
long run a tax upon the productivity of the country. More men may be
employed, more wages paid, more capital kept in circulation; but it
still remains true that the coal consumed, the extra wages paid and the
rolling stock used up in the carriage of goods, either unduly far or
by unreasonably roundabout routes, constitute an economic loss to the
community. In many cases, of course, it may be an inevitable offset
for other advantages. In the Savannah Freight Bureau case[310] (map, p.
648, _infra_) Valdosta, Georgia, was 158 miles from Savannah, while it
was 275 and 413 miles by the shortest and longest lines respectively
from Charleston. Valdosta's main resource for fertilizer supplies,
other things being equal, would naturally be Savannah, the nearer
city. Yet in the year in question it appeared that nine-tenths of the
supply was actually drawn from Charleston; and much of it was hauled
413 instead of a possible 158 miles. No wonder the complainants alleged
"that somebody in the end must pay for that species of foolishness."
Whenever the Colorado Fuel and Iron Company succeeds in selling goods
of no better grade or cheaper price in territory naturally tributary
to Pittsburg, a tax is laid upon the public to that degree.[311] When
Chicago and New York jobbers each strive to invade the other's field,
the extra revenue to the carriers may be considerable; but it is the
people who ultimately pay the freight. The analogy to the bargain
counter is obvious. The public are buying something not necessary
for less than cost; while the carriers are selling it for more than
it is worth. Economies would redound to the advantage of all parties
concerned.
* * * * *
What remedy is possible for these economic wastes? Both the carriers
and the public have an interest in their abatement. The more efficient
industrial combinations have taken the matter in hand, either by
strategic location of plants or, as in the case of the United States
Steel Corporation, by the utilization of a Pittsburg base price scheme,
with freight rates added.[312] But probably the large proportion of
tonnage is still shipped by independent and competing producers. To
this traffic the railways must apply their own remedies. Either one of
two plans might be of service. The right to make valid agreements for
a division either of traffic or territory, if conceded to the carriers
by law under proper governmental supervision, would be an effective
safeguard. This would mean the repeal of the present prohibition of
pooling. The amendment of the long and short haul clause in 1910 (p.
601 _infra_) seems likely to do much toward accomplishing the same
result.
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