Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
A second equally important disadvantage of the prescription of
a uniform classification arises from the fact, already noted,
that classifications and distance tariffs are interlocking and
interdependent. Any change of the one involves a change of the other.
Therefore, a unification of the three existing classifications would
render it necessary to overhaul from top to bottom the distance tariffs
under which it was to be applied all over the country. For example,
the rate from New York to Atlanta, first class, being $1.14, while the
rate from New York to Chicago, about the same distance, first class,
was 75 cents; to choose a first-class rating which should apply on
both these lines would involve, not only a re-classification of the
commodities, but also that the new rates applying upon first-class
goods should be somewhere between $1.14 and 75 cents. Inasmuch as it
had taken many years to reach the present adjustment, it seems hardly
possible that a new arrangement could be made which would yield the
railways a satisfactory return upon their traffic. The difficulty
herein suggested was clearly instanced in the case of a comparison made
between the Southern Classification and the Uniform Classification
proposed in 1890. The difficulty, and always a prominent one, was that
the Uniform Classification was largely for carload lots, while the
practice was entirely different in the old Southern Classification.
Moreover, most of the Southern rates were given for goods "released";
that is to say, at the owner's risk. Cotton piece goods, non-released,
in less-than-carload lots from New York to Atlanta, were charged
sixty cents a hundredweight under the old Southern Classification. As
reclassified in the suggested Uniform Classification, the rate was
ninety-eight cents; and was given only for "released," that is to say,
at owner's risk. The difference for the same commodity from Louisville
to Atlanta was as fifty-six cents in the old Southern, to ninety-two
cents under the Uniform. Canned goods, not otherwise specified,
"non-released," in less-than-carload lots from Louisville to Atlanta,
were charged sixty-eight cents under the old Southern Classification.
The new Uniform Classification, in order to yield the same revenue,
made it necessary to charge a rate of eighty-one cents. Differences of
this kind were manifest in every one of the thousands of commodities.
In other words, the adoption of a uniform classification meant to
abolish by a stroke of the pen all the old rates which formerly
existed. An entirely new schedule of rates would have had to be worked
out; with the most uncertain results upon revenue and upon the rival
commercial interests concerned. The magnitude of such a task can be
scarcely appreciated. Years would be required to reach a condition of
relative stability once more.
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