Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
One further illustration may make our point clear. At first sight it
is anomalous that in the East the rates on cattle and shoes between
New York and Boston are not widely different, namely nineteen cents
and twenty-five cents, respectively, per one hundred pounds; while as
between Montana and Chicago, the rate on shoes west bound is almost
four times as great as the rate on cattle over the same haul eastward.
In other words, rates on shoes in the East are at bed-rock, whereas in
the West it is the cattle rates which are held at the lowest possible
point. Ton-mile rates on shoes, in other words, increase progressively
toward the west, while ton-mile rates on cattle rise, contrariwise, in
the direction of the stronghold of manufactures. The difference between
the two, however, is in the fact that the upper level of what the
traffic will bear is very much greater in the case of one than of the
other. Cattle, possibly, may never support more than seventy-five cents
per hundredweight; while shoes can be moved under rates four times as
high.
Obviously any mere compromise between divergent classifications, each
based upon the protection of a local constituency against competition
from outside its own territory, can hardly prove satisfactory. Cotton
piece goods, already instanced in this regard, if grouped as first
class in the West, second class less fifteen per cent. in the East,
and fourth class in the South, would hardly be adequately treated
in a uniform classification for the entire country by averaging
these different figures. For neither the West nor the South would be
satisfied--the rating being too high to fully protect the southern
mills against competitors in New England; nor, on the other hand,
would the classification be sufficiently high in the West to yield
the roads proportionately the revenue which goods of that character
ought properly to contribute. The East, alone, lying intermediate
between the other two, would not be greatly disturbed. The necessary
outcome, it is predicted, of the adoption of any such average or
uniform classification would be the quotation of exceptional commodity
rates wherever the uniform classification was at variance with local
interests. The increase in commodity ratings after 1887--now happily
reversed--may perhaps be in part accounted for in this way. Any such
stimulation of exceptional ratings would be a primary objection to
any uniform classification for the United States as a whole. As one
witness before the Interstate Commerce Commission testified, "If ever
there is a uniform classification, it will take a warehouse to hold
the commodity tariffs." Were such the case, far greater complexity and
possible discrimination might exist than at the present time.
Public-domain text, read in full here on John Shaqi.
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