Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
concerned.[381] One of the primary advantages, therefore, from the
unification of the three systems now existing, would be the possibility
of readjusting not only definitely, but also equitably, the conflicting
interests of various shippers and communities now tied up by these
local arrangements.
A recent case[382] illustrates the bearing of classification rules upon
competition in trade as between rival cities. Chicago and most of the
Ohio river gateways enjoy a so-called "two-for-one-rule," permitting
the application of carload rates on part carloads in excess of full car
ladings. The complaint alleged that the denial of this privilege to
Indianapolis, whereby less-than-carload rates were charged on excess
fractional carloads, unjustly discriminated against this city in the
transportation of various light and bulky articles, such as vehicles
and furniture, in competition for trade throughout the Southwest.
The difficulty arose from a conflict between rules in the Western
Classification and the Southwestern Tariff Committee, the latter being
a subordinate body having jurisdiction over local practices in Texas
and the neighborhood. The rule in one case provided that where a car of
sufficient capacity to accommodate light and bulky shipments could not
be promptly furnished, two smaller cars would be provided, subject to
wholesale rates, however the consignment was divided between the two
cars. The Commission declined to interfere in this case, anticipating
the necessity for a thoroughgoing revision of all such rules which,
it is obvious, almost invite manipulation of rates and improper
discrimination.
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