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 effect of railway competition at junction points is revealed at
once, upon inspection of the map, by the general law that the boundary
line of zones lies immediately west of the large cities. Notice the
location of Cleveland; Warren, Pennsylvania; Newark, Ohio; Dayton,
Fort Wayne, Detroit, Port Huron, Cincinnati, Indianapolis, Louisville,
Lansing, Logansport, Terre Haute, Peoria, and Decatur. Columbus,
Toledo, and Evansville, Indiana, are about the only exceptions. In
nearly every case the theoretical zone boundary has been shifted in
such a way that the rate rises just west of the important competitive
point. The reason is obvious. Rates being held down at these points,
and no greater rate being possible at any other point further east,
conditions must be equalized _upwards_, immediately the depressing
influence of competition is removed. Each zone level is of necessity
an average of a theoretic constantly rising scale from east to west.
Places immediately west of an important junction point are raised
somewhat above their theoretical grade as a compensation for those
places on the westerly side of each zone whose rate is held down below
their theoretical level by the exigency of competition at the next
large town. Or, to be specific, Indianapolis may hold down the rate to
ninety-three per cent. of the Chicago rate farther west than otherwise
would be the case. In fact, by reason of its paramount importance as a
railway centre, it has held down the rate so far west that for purposes
of equalization the rate west of it immediately jumps to one hundred
per cent. For, as will be observed, on inspection of the map, the
96-97 per cent. zone is interrupted at this point; the 92-95 per cent.
zone being extended unduly far west and the one hundred per cent. zone
being extended inordinately far east, until the two meet just west of
Indianapolis. Detailed study of the schedules and maps will reveal many
similar instances.
Public-domain text, read in full here on John Shaqi.
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