Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
Exceptional or commodity rates are also commonly found in a territory
like the southern states, where manufactures are struggling to maintain
a foothold. If it appear that a new industry can maintain itself
in competition with already established industries elsewhere only
by a concession in charges, the traffic manager may elect to grant
a commodity rate until such time as the industry has been placed
firmly upon its feet. The tonnage moving under commodity rates in
such circumstances may be much greater than that included under the
classified schedules. Attention has already been drawn to this fact,
but it merits still further comment. Probably three-fourths of the
business of American railways is done under such special rates. This
is apparently a higher proportion than rules in foreign countries with
the possible exception of England. Yet it is important to notice that
the revenue obtained from such traffic is relatively much less than the
tonnage, inasmuch as most commodity rates are confined to low-grade
goods. Whether such exceptions to the classified tariffs are on the
increase or not is open to question. The evidence tends to show that
special rates granted in connection with industrial development tend
to increase up to a certain point. Commodity rates, for example, are
said to be much more important in the West than they were fifteen
years ago.[353] But, on the other hand, industrial conditions having
once become standardized and assured, the natural disposition of the
railways is to substitute regular schedules for a multiplicity of
special rates. The dilemma is that such a special rate once allowed,
is exceedingly difficult to withdraw. An earnest attempt was made by
the trunk lines in 1899 to retire a large number of these commodity
rates. It then appeared that the New York Central & Hudson River
Railroad had no less than 1,370 on file. Opposition naturally arose to
the cancellation of these--an opposition less easily overcome because
of the complication that the withdrawal of commodity rates meant
practically the abolition of carload ratings. Such action, therefore,
looking toward simplification of tariffs, threatened substantially to
disturb all the existing commercial adjustments. Nevertheless it is
encouraging to note that a distinct reduction in the number of separate
and independent rates put into effect is apparent since the recent
extensions of Federal authority. The following table, covering the
tariffs officially filed at Washington since 1906, is proof positive of
great improvement in this regard:
FREIGHT SCHEDULES FILED WITH THE INTERSTATE COMMERCE
COMMISSION
1896 131,597
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