Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
The relation of carloads to consuming capacity of the market is an
element in the trade policy of protection to clients extended by
the railway. The difficulty of properly relating rates upon raw and
finished products has already been discussed. Carload minima must
also be considered in this connection. Why should 50,000 pounds be
prescribed as the carload limit on corn to Texas points, when the
limit on corn-meal is only 30,000 pounds? Evidently differences in
loading capacity are inadequate as an explanation. Nor can this be
accounted for on the ground of any difference in mere cost of carriage.
The explanation is purely commercial--springing from the competition
between northern mills and mills located in Texas, both making use
of raw material from the same fields. A heavy carload minimum is
entirely practicable on corn for the Texas miller; but an equally heavy
carload requirement on corn-meal would shut out the northern miller
entirely from many local points. For the market at these small places
is, of course, relatively restricted.[374] There can be no doubt that
every feature of classification, even down to the last minute details
of carload minima, stands in such intimate relation to commercial
competition, that to disturb it in one regard may entail the most
far-reaching consequences.
* * * * *
Ever since 1888 the constantly increasing elaboration of the three main
classifications in force, with all the resulting inconsistencies and
overlappings, has led to a persistent demand for the introduction of a
single uniform classification for the entire country. Soon after the
passage of the original Act to Regulate Commerce in 1887, a resolution
passed the House of Representatives directing the prescription of such
a classification. Apparently the Interstate Commerce Commission was
fully alive to the difficulties of such an undertaking. The railways
were induced to move in the matter, but to no purpose.[375] This first
abortive attempt reflected the mutual jealousies of competing roads,
as well as the difficulties of suiting a single classification to
the variety of local conditions existing throughout the country. All
that was done was the recommendation of a "Board of Uniform Freight
Classification," comprising two members from each of the important
territorial bodies and including both the Mexican and Canadian
carriers. Changes were to be made by a two-thirds vote. Jurisdiction
over the tripartite division of territory, east, south and west, was
to be assigned to district chairmen. Final authority for the country
at large was to be vested solely in the whole board. The absolute
refusal of the New York Central & Hudson River to accede to this plan
prevented its acceptance. Apparently too many special or commodity
rates were in force upon its line, in order to hold its powerful
clients in markets all over the country, to make it practicable to
adopt the scheme.
Public-domain text, read in full here on John Shaqi.
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