Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
* * * * *
Historically considered, the development of freight classification has
been much the same in England and the United States. Early railway
practice was an outgrowth of the tariffs in force upon canals and
toll roads.[322] In America, freight charges were at the outset often
arbitrarily fixed by the state legislatures, as conditions precedent
to the grant of charter. In many instances they were based upon the
customary performance by wagon, distinguishing between light-weight
articles paying by the cubic foot, and heavy ones for which the tariff
was based upon weight. Thus in 1827 the charter of the South Carolina
Railroad established its tolls at one half the usual wagon charge. The
Southern Pacific in local rates on ore into San Francisco followed
along just below the charges by ox cart. The freight was proportioned
also according to the length of haul by an arbitrary mileage rate. It
soon developed, however, that railway rates were unique in the fact
that not only was there a great increase in the volume of trade, but
also in the diversity of articles offered for transportations as well.
Far more elaborate classifications were soon seen to be necessary.
The South Carolina Railroad tariff of 1855, described by
McPherson,[323] exemplified the primitive traffic conditions then
prevalent. Goods were divided into four classes. The first consisted
of articles of light weight or high value, including, for example,
such incongruities as bonnets, tea, and pianos. The remaining three
classes paid by weight with a descending scale of charges. It is
difficult to explain why coffee and sugar should be rated lower than
stoves and feathers; or why dry hides and rice should be charged a
higher rate than cotton yarn and bacon; but it is evident that a rough
classification according to weight, value, use and cost of service
was being attempted. There was in addition a considerable collection
of special rates on chosen commodities according to the method of
packing them, whether by barrel, bale or case. And there were also
what corresponded to modern commodity rates upon cordwood, lumber,
bricks, and similar goods. This tariff, though primitive, including
no less than three hundred items, was far more elaborate than those
commonly used at the time. The Louisville & Nashville originally
distinguished but three classes: one by bulk, another by weight and a
third applicable to live stock. Poultry was rated by the dozen long
after the Civil War, with a higher charge for Muscovy than for ordinary
ducks. The traffic manager of the Chicago, Milwaukee & St. Paul
testified before the Elkins committee in 1905, that the classification
in Illinois in his youth was printed on the back of a bill of lading
no greater than the size of an ordinary sheet of letter paper, and the
page was not full.
Public-domain text, read in full here on John Shaqi.
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