Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
making their shipments direct in small lots at rates approximately
as low as the local jobbers pay on carload lots. This question is an
exceedingly important one, requiring the balance of opposing interests
to a nicety.
Not unfamiliar aspects of the problem of carload rating are revealed
in a recent case before the Interstate Commerce Commission, concerning
milk rates in New England.[362] And yet the normal order is reversed.
Usually, complaint is made of the denial of carload ratings. In this
instance a plea was entered for a useable small unit rate as against
the wholesale charge. The dispute was precipitated by a deadlock in
1910 between the three large Boston milk contractors and the farmers'
associations of several states. The producers, failing in their demand
for an increased price, declined to furnish milk at the old figure.
A famine resulted, which drew the attention of the public sharply
to the system under which the Metropolitan district of Boston was
supplied. The belief prevailed that the peculiar transportation
conditions known as the "leased car system" which had existed for half
a century, was mainly responsible for the tight monopoly of the milk
supply. Under this arrangement specially low charges were allowed to
those who made shipments regularly by the carload. The Massachusetts
legislature, after an investigation, finally passed a law providing
that no carrier should charge more for the transportation of milk by
the can than was charged for larger quantities; and also that the same
facilities, icing, for example, should be furnished in the one case
as in the other. This settled the intrastate charges; but it left
matters as before for all the other New England states contributing
to the market. In this form the controversy was brought before the
Federal authorities, which exhaustively considered the methods of
transportation as affecting all parties concerned. The contrast with
the older elastic situation as to milk ratings in New York was sharp in
many respects.[363] This earlier controversy had to do mainly with the
relative rights of nearby and distant producers. It was a question of
the element of distance as affecting a local or territorial monopoly.
The Boston case, on the other hand, was rather a matter of carload
ratings than of graduation of charges according to the length of the
haul. The monopoly in this instance was that of contractors who had
succeeded in getting entire control of the business by reason of the
wide spread between charges for milk by the can and by the "leased
car." Shipments by the can from the independent farmer were rendered
practically impossible since they had to be carried in the baggage car
and were liable to spoil through lack of refrigeration.
Public-domain text, read in full here on John Shaqi.
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