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 development of the Gulf ports more recently, together with the
situation respecting rate wars on export grain, is still further
indicated by the chart. When New Orleans in 1891 considerably increased
its business through the activities of the Illinois Central Railroad,
it speedily developed that climatic conditions led to saturation of
the grain with moisture in the vessels' holds. This fact, together
with other difficulties, discouraged progress. But, for a time, with
the revival of foreign commerce in 1897, both the Gulf and Atlantic
ports shared in the greatly increased business. Galveston had now come
into the field; and at times surpassed New Orleans in importance by
virtue of the development of wheat fields in the Southwest. But the
overweening ambition of these Gulf ports, threatening as they did
the supremacy of New York, led to intense rivalry. All the lines to
the Gulf became finally pitted against all the trunk lines serving
the Atlantic seaboard. The advantage for two or three years seemed
to lie with the southern lines; and, as the chart indicates, in
1903-1904 grain exports through New Orleans and Galveston actually
exceeded those of any other ports. After the utter collapse of export
business in 1905, trouble once more threatened to break out; but it
was fortunately averted by a compromise effected in 1906. The Gulf
lines on through freight demanded a substantial differential to
offset certain disabilities, such as the longer haul, poorer service
and climatic damage to which they were exposed. The trunk lines
successfully met this contention in part, and finally brought about
a peaceful settlement of the difficulty. Under this arrangement of a
small differential in favor of the Gulf, New York, as the chart shows,
has once more resumed its preëminence as compared with the rest of the
country. But of late the ever-lessening volume of surplus American
grain for export to Europe[19] has rendered the question of far less
importance than at one time it threatened to assume.
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