Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
In this diagram the distances of carriage are represented along the
horizontal line, A B; while the rate charged is laid off vertically.
The distances A C and E B represent the constant terminal cost; while
the steadily rising rates with increasing distance, due to movement
expenses, are shown by the sloping dotted line C D. This chart at
once demonstrates why under the very simplest physical conditions a
straight mileage tariff is unscientific and unreasonable. For the
constant terminal expense, spread evenly over the mileage traversed
as the movement expenses grow, becomes progressively less and less
in proportion to the total of the two, which constitutes the real
rate. The longer the haul, the lower the ton-mile cost as a matter of
necessity. As Chanute calculated on the New York Central a generation
ago,[65] while the average cost per mile of hauling a ton ten miles
was 4.062 cents, it descended progressively to less than one cent per
mile for distances over five hundred miles. A common rule is that
the rate rises as the square root of the distance, rather than in
proportion to it. A hundred-mile haul represents a cost approximately
only twice as great as one of twenty-five miles, instead of being four
times as much. For thrice a given cost the haul may be increased nine
times. The course of such a tariff with increasing distance would be
represented by the parabolic curved lines on the preceding diagram.[66]
The particular curve would depend upon the commodity and local physical
conditions. In territory where movement expenses were heavy or
operation difficult, the curve would obviously rise more rapidly. Such
a mathematical tariff does not depart widely from the one traced by
the heavy dotted line C D first described. The progressive decline of
the per mile rate with increasing distance may be illustrated by the
rough estimate of allowing two and one-half cents per hundred weight or
fifty cents per ton for terminal cost, with one-half cent additional
per mile for movement expenses. For a ten-mile haul this would cost
fifty-five cents, or an average of 5.5 cents per mile. Were the
distance 500 miles, the average cost would be only (50+250)/500 cents
or 0.6 cents per ton mile.
[Illustration: Diagram of Belgian Tariff Sheets.]
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account