Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
Car capacity, both as regards ability to load and carry economically,
is the principal factor in the determination of minimum carload rates.
It is largely a question of relative cost of operation.[369] Reference
has already been made to the great economy incident to the use of
large cars, whereby the paying load becomes less in proportion to the
deadweight. This, of course, largely accounts for the steady increase
in carload capacity in recent years. But the question is even more
complicated. An adjustment must be made between two main groups of
freight: first, that which is sufficiently heavy to be readily loaded
to the minimum weight in ordinary cars; and, secondly, light and bulky
goods of which the common car will contain but a small proportion in
bulk of its truck capacity by weight. Fortunately, we may evade the
moot point, theoretically, as to whether a carrier is entitled to the
same revenue from a given vehicle, whether it be loaded with heavy
or light goods; that is to say, whether the rate ought properly to
decrease per pound with increase in the density of the lading. This is
a technical matter as to cost. But it carries certain implications of
considerable importance commercially, as will shortly appear.
The difficulty of conforming carload minima upon light and bulky
articles to those on heavier goods has appeared with each attempt
to standardize equipment. Widely divergent rules in the three main
classification territories still cause great confusion in this
regard. There is a constant temptation to construct extra long or
wide cars, particularly in the western states, in order to assist
the manufacturers of such light and bulky products as furniture and
agricultural machinery in their competition with dealers in the
East, shipping under Official Classification requirements. In other
words, the penalty carried under the rules as to minimum carloads,
for the use of cars larger than the standard, has been much less in
the West than in the East and South. The situation has been further
complicated in some instances by the arbitrary action of state railway
commissions. The experience in this regard is illuminating, as again
showing the extreme delicacy of adjustment in such matters under the
stress of commercial competition. The short-line distance between the
Missouri and Mississippi rivers lies entirely within the state of
Missouri. It governs, as we have already seen,[370] the entire rate
structure in this part of the country. This commonwealth some years
ago by law fixed a carload minimum of 20,000 pounds for furniture,
agricultural implements and wagons.[371] As it is not practicable to
attain this minimum load on an ordinary standard car, the Missouri
shipper was stimulated to demand larger equipment in order that he
might avail himself of the lower rate for carload lots. The local
railways, accordingly, built such cars, which, of course, travelled
far beyond the limits of this single commonwealth. This forced other
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