Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
always in a position to disturb the rate situation, through connection
with all the competing trunk lines, insisted upon equality of rates all
along its lines. To do this, the 100 per cent. zone had to be extended
east to Indianapolis. Thereafter the Monon could profitably "work its
line in both directions." This illustration will serve to show why
ordinarily the zone boundaries conform as closely as possible to the
course of the lateral roads. The confusion which would be engendered,
were the Peoria, Decatur & Evansville to be partly in the 110 per
cent. and partly in higher percentage territory, while still insisting
upon its right to work its line both ways, can readily be imagined. To
avoid such difficulties, the present modification of strictly distance
percentages had to be adopted.
The third dominant influence, above mentioned, in modifying the
mathematical precision of percentages based alone upon the distance
from New York, has been the commercial competition of traders and
cities one with another. The aim of all rate adjustment should be,
and in fact, so far as possible in American railway practice, is
to equalize conditions, so that the widest possible market shall
result. Producers or traders in each city demand access on even terms
to all territory naturally tributary to them by reason of their
geographical location. Each particular railroad sees to it that its
own patrons and cities are "held" in all parts of these markets, as
against the efforts of competing railways to promote the welfare of
their own constituencies. Consequently, the Proceedings of the Joint
Rate Committee are filled with discussions as to the advisability
of amending general rules here and there to suit local conditions.
Minor changes are continually being effected. Grand Rapids, Michigan,
once in 100 per cent. territory, asked for a 90 per cent. rate, and
in 1891 secured a reduction to 96 per cent.[412] Louisville, once
in 97 per cent. territory, is now a 100 per cent. point. Shifts in
both directions have frequently occurred, as the following table of
percentages shows:[413]--
-------------------------+---------+--------+----------+-----------
Basis | Detroit | Toledo | Sandusky | Cleveland
-------------------------+---------+--------+----------+-----------
April 13, 1876 | 85 | 78 | 71 | 65
June 23, 1879[414] | 81.5 | 81.5 | 78 | 73.5
April 14, 1880 | 75.5[415]| 75.5 | 75.5 | 70
Present (1900) | 78 | 78 | 78 | 71
-------------------------+---------+--------+----------+-----------
Public-domain text, read in full here on John Shaqi.
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