Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
From these modest beginnings the development of classification in the
United States was rapid, responding to the ever-increasing intensity
of competition and the spread of markets, particularly after 1875. By
the middle of the eighties most of the large railways were working
under six or eight different classifications. It began to be apparent
that some check must be placed upon such increasing complexity. For
conditions were wellnigh intolerable, with one set of rules for
Illinois, and yet another west of Buffalo, divided into eastbound and
westbound sections, with still a third on westward shipments local to
territory between Chicago and the Missouri river. The first attempt
at a systematic scheme was made in 1882, but the agreements then made
proved unstable. By 1887 conditions had become insupportable, so great
was the number and the diversity of the classifications throughout the
country.[324] Some applied to local business only, and were peculiar to
each road. Some applied only to westbound business, others to eastbound
traffic. The traffic manager of the New York Central & Hudson River
testified before the Interstate Commerce Commission that there were at
one time 138 distinct classifications in trunk line territory alone.
The case of the Wabash in 1883 was typical. A shipper desiring to
determine freight rates over that road might be compelled to consult a
classification for the middle and western states in six classes; one
for the Southern Railway & Steamship Association territory in eighteen
classes; one for Mississippi valley business in five classes; one
known as the Revised Western in nine classes; the Trunk Line East in
thirteen classes; the Trunk Line West in five classes; a classification
for Texas points in eight classes; and two for the Pacific coast,
according to direction, in eight and nine classes, respectively. This
situation, rendering it almost impossible for any shipper to determine
in advance what his freight rates were going to be, as well as what
his competitor was paying, early impressed itself upon the Interstate
Commerce Commission. And it was doubtless due in part to its initiative
that classifications were shaken down into substantially their present
general form in 1888.
NUMBER OF RATINGS IN 1909[325]
Less than Carload Carload
Southern Classification 3,503 703
Western Classification 5,729 1,690
Official Classification 5,852 4,235
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