Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
Under the new long and short haul clause, what may be done by the
Interstate Commerce Commission? This body roughly determining the
location of D, a natural division point, would then refuse to permit
A B, B C to charge less to either z or C than to any intermediate
point, x, B or y. Coincidently it would bar the other road A C, C B
from any lower through rate to points beyond D, such as x, B or y
than to any intermediate station. Two courses would be open to the
roads. They must either mutually withdraw from all business beyond
D or reduce their rates to all intermediate points correspondingly.
In a sparsely settled region with little local business, they might
conceivably choose the latter expedient. But in the vast majority of
cases the roads would prefer to withdraw from the unreasonably distant
fields.[314] Simultaneously taken by each line, such action would put
an end to the economic waste. At the same time it would terminate one
of the most persistent causes of rebates and personal favoritism. To be
sure it would generally operate in favor of the strong, direct lines as
against the weak and roundabout ones. Great benefit would accrue to the
Pennsylvania, the Illinois Central or the Union Pacific railroads. The
activities of the parasitic roads and the scope of parasitic operations
by the substantial roads would inevitably be curtailed. Much justice
would be done and much local irritation and popular discontent would be
allayed.
FOOTNOTES:
[249] P. 133, _supra_.
[250] _Quarterly Journal of Economics_, V, 1891, p. 438.
[251] Senate (Elkins) Committee Report, 1905, III, pp. 2152-2153. The
transverse Buffalo, Rochester and Pittsburg seems to be the feeder for
the New York Central and the Reading.
[252] _Ibid._, IV, p. 2849.
[253] U. P. Merger case: Supreme Court, October term, No. 820,
Appellant's Brief of Facts, pp. 135-193 and also p. 493.
[254] Question of Canadian-Pacific Differentials, Hearings, etc., Oct.
12, 1898, p. 115. Privately printed. _Cf._ also the Sunset Route,
_ibid._, p. 116.
[255] 51st Congress, 1st sess., Sen. Rep., No. 847, p. 176.
[256] _Pubs. Amer. Stat. Ass._, June, 1896, p. 73.
[257] Reports Internal Commerce, 1876, pp. 54-59.
[258] Map in Brief of Ed. Baxter, U. S. Supreme Court in the Alabama
Midland case.
[259] Windom Committee, II, p. 795.
[260] Cullom Committee, p. 530. Hudson also cites similar cases from
the Hepburn Committee. _Cf._ also Report on Internal Commerce, 1876,
App. p. 57.
[261] New York _Evening Post_, Sept. 30, 1905.
[262] Senate (Elkins) Committee, 1905, III, p. 1831.
[263] Only once compiled in detail. U. S. Treasury Dept., Circular No.
37, 1898. The volume of traffic by tons between points in designated
states by way of Canada was as follows:
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