Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
western roads, in order to protect their clients in the same markets,
to adopt a similar policy. The result is that extra large equipment is
relatively more common throughout this territory; thereby conferring
a distinct advantage over their eastern competitors upon western
shippers of such light and bulky freight. In pursuance of this same
protective policy, the western roads have also enforced distinctly
favorable rules as to carload lots applied to several small cars
instead of one large one.[372] These troublesome details are given
in the hope that they may show how far the ramification of trade
competition extends. They re-enforce the conviction that any reform of
classification is a matter of extreme difficulty; and, if undertaken
at all, must be done under governmental compulsion and by a single
universal reform, rather than by any attempt at piecemeal improvement.
Next to ability to load and carry, as a determinant factor in fixing
minimum carload weights, the consuming capacity of the market must be
considered. A reasonable minimum carload in the East might well be
unfair in the West or South. An old-established factory in New England
might satisfactorily use a quantity of raw material which in a carload
lot would overwhelm a western or southern plant. Thus it comes about
that minimum weights on the same goods quite properly vary widely in
different territories; being higher in the East than in the West, and
least of all in the South. The problem, therefore, of standardizing
carload rates throughout the country, unfortunately becomes exceedingly
difficult. A compromise will fail to satisfy anybody; and, moreover,
such a change of minimum carload weights at once necessitates a
remodelling of the particular distance tariff to which it applies. This
point was well illustrated in a recent case.[373] A railway accepted
for the same carriage at different times two carload shipments of
lime from a given concern. On the one, a rate of thirty-four cents
per one hundred pounds was based upon a minimum carload weight of
24,000 pounds. On the other twenty-nine cents was assessed upon a
minimum of 30,000 pounds. The carrier alleged that these differences
in rates per pound were entirely compatible in view of the difference
in carload minima. It then appeared that these minima, especially
with a perishable commodity like lime, varied considerably according
to destination. Large distributing centres were given low rates on
high minima, while small towns, consuming relatively less, were best
served by a lower carload minimum to which a higher rate per pound was
applied. In other words, the close interrelation between the rate and
the minimum was a matter of great commercial importance.
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