Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
This ever-changing spread of rates from place to place, as between
different commodities and with all possible combinations of the two,
may be clearly explained by reference to the diagram at page 108,
showing the gradation of charges by distance for different goods. Is
it not plain that the spread between commodities at any given place is
indicated by taking a vertical cross section of the diagram at that
point? We have already seen that the curves, rising with increase of
the distance, do so by different degrees. They cross and recross,
making an intricate lace work of lines, because of the fact that
while cost, in general, may increase more or less proportionately to
distance, competition in its ever-varying forms, plays all sorts of
pranks with the rates from point to point. The rate at any station is
shown by the height of the curve on the vertical line for that place.
Even, however, if the curves never crossed, but rose by evenly spraying
out from the point of shipment at one end of the line, as in the case
of those for the three upper classes, their relative heights would
constantly change with distance. But owing to the complexities of
competition the onward and upward movement of the curves for particular
commodities is usually much more erratic than this. Some goods, like
children, "get their growth" early. They soon attain the level of all
the charge they can ever bear. Others distribute their development
over a much greater distance. Sometimes, as we have observed, the coal
curve will be above the wheat curve; sometimes it will be below. In
other words, the vagaries of these sloping lines cause the vertical
cross sections, indicative of spread, to vary from point to point all
along the line. Such a thing as constancy of ratio between classes
or particular goods is, in the nature of transportation things,
impossible. This is a matter of fundamental importance, especially
in its bearing upon the proposition, soon to be considered, of
substituting a single uniform classification under government authority
for the present threefold system. Moreover, it demonstrates the great
commercial disturbance which might ensue from a general advance of
freight rates by an indiscriminate transfer of commodities from lower
to higher classes, such as was attempted in 1900. Such procedure is
altogether illogical, and economically as upsetting to trade as a
general "horizontal" increase or reduction of a customs tariff.
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Public-domain text, read in full here on John Shaqi.
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