In Italy, differential rates have been the subject of public
inquiry, and the representatives of some local interests have
asked for their abolition. But they exist; and the verdict upon
them of the Parliamentary Committee of Inquiry in 1881 was: “It is
indisputable that the system of differential rates has helped to
strengthen and improve the national industries.”[26]
[26] Parte II., Vol. II., Sec. 32.
The fact of railways in other countries charging special rates for
import, export and transit traffic, is, of course, not a proof of
their being right in principle. But the foregoing information may
correct loose assertions or suggestions that differential rates are
unknown or rare elsewhere. It shows that the railway authorities and
the Governments who control the rates in those countries, even while
professing to charge mileage rates, have considered it necessary,
with the view of promoting and protecting the interests of their
trade, to charge differential rates.
In the United States, where there is much competition for the
conveyance of long distance interstate traffic, and where remarkably
low rates--“war rates,” as they are called--are charged, charges
for intermediate traffic are not lowered proportionately. In that
country differential rates have been much attacked; they have no
doubt occasionally been imposed without measure or reason. But they
still subsist, and are found useful. As an illustration it may be
stated that, at the present time, the rates for the conveyance of
flour from Minneapolis to Milwaukee, 335 miles, and to Chicago, 420
miles, are the same; while the rate to Duluth, 164 miles, is only 25
per cent. less.[27]
Public-domain text, read in full here on John Shaqi.
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