Meanwhile, however, another development was going on, namely, the
consolidation of these small railroads into trunk lines or long
stretches of railway. The reason for this consolidation was the
opportunity to make larger earnings from through traffic and at the same
time to give better service. The opening-up of the West led to the
building of new trunk lines and to further consolidations, especially
during the years immediately following the Civil War. In this way single
railroads spread themselves far outside the territory of a single state;
their tracks ran into many states. [Sidenote: But this freedom from
control was abused.] The corporations controlling such trunk lines
became big and powerful. They fixed rates to suit themselves and often
favored one section of the country at the expense of others, or gave to
large shippers an undue advantage over the smaller.[161] Where there was
but one railroad in any district everyone was at its mercy. Exorbitant
rates could be charged. On the other hand, where there were competing
lines between two cities the rivalry of the roads often forced the rates
down to a point where goods were carried at a loss. Sometimes the
competing roads, realizing the folly of this competition, formed a
“pool” or agreement to share the traffic proportionately, and then each
put up its rates to a high level. These practices were inimical to the
best interests of commerce. They gave rise to so much complaint that
Congress eventually responded by placing the interstate railroads under
government regulation. This it did by the Interstate Commerce Act of
1887.
[Sidenote: The beginnings of federal regulation.]
=The Interstate Commerce Act of 1887.=—By the provisions of this act and
the various amendments which have been made to it during the past
thirty-five years, all corporations engaged in interstate commerce
(which includes not only railroad companies, but express, sleeping car,
telegraph, and telephone companies) must maintain reasonable rates; must
make these rates public; and must not discriminate in favor of any
locality or shipper. The formation of “pools” is illegal; the granting
of free passes to other than railroad officials is forbidden; and all
the important activities of the railroads are subject to governmental
supervision. These various provisions were not all enacted in 1887. The
legislation of that date merely made a substantial beginning. Several
amending laws, passed from time to time during the past thirty-five
years, have steadily extended the scope of regulation and have also
endeavored to secure greater safety in the operation of the railroads.
[Sidenote: Organization and work of the I. C. C.]
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